A senior federal government source told the National Post on 9 September that Ottawa has "interest on our end" in loosening the 2024 regulations that confine nicotine pouches to behind pharmacy counters — but no decision has been taken and the file is not a priority for the Carney government.

The signal comes after months of pressure from two provincial governments and Alimentation Couche-Tard, the parent company of Circle K. Couche-Tard lobbyist Marie-Hélène Labrie met PMO chief of staff Marc-André Blanchard and two PMO advisors on 13 March 2026, per lobbying records. Founder Alain Bouchard has met Prime Minister Mark Carney and Blanchard directly.

Alberta Premier Danielle Smith wrote to Carney in March questioning why nicotine pouches face stricter sales rules than cigarettes. Ontario Health Minister Sylvia Jones has raised the file with her federal counterpart.

What the 2024 rule did

The ministerial regulations introduced in 2024 capped nicotine pouches at 4mg per pouch, limited flavours to mint and menthol, banned packaging that appeals to minors, and required behind-the-pharmacy-counter sales. Zonnic, made by Imperial Tobacco Canada, remains the only Health Canada-approved pouch on the market.

The pharmacy restriction effectively removed pouches from convenience stores — the channel that had driven growth before the rule took effect. PouchDaily has previously documented how the policy fuelled an illegal pouch market in Canada, with unauthorized imports and products above the 4mg cap circulating widely.

Health Canada's position

Health Canada denies the pharmacy rule is driving illicit sales. The department told the Post that illegal products appear driven primarily by unauthorized imports and cross-border smuggling, not by the sales channel restriction.

The Convenience Industry Council of Canada (CICC) disputes that view. In a 10 September statement, CICC president Anne Kothawala called convenience stores "the age-gated retail channel with the strongest compliance rates of any retail channel in the country" and urged Ottawa to reverse a policy she said "fails public health and public safety and feeds a contraband market."

The CICC cited a 2026 industry report showing that nicotine replacement therapies including Zonnic accounted for about 25% of successful quits in 2024, and that more than half of successful quits were achieved without formal supports.

The political context

The Conservative Party campaigned on a promise to "free the Zyn" in the last federal election. Ontario Conservative MP Jamil Jivani has signed Zyn canisters on campus tours.

A 2025 paper from the Ottawa Heart Institute found that nicotine pouches may reduce the number of cigarettes smoked per day but do not appear to increase quit rates.

Two other federal or provincial sources confirmed to the Post that no decision has been taken and that the file is not currently a priority for the federal government. The signal of "interest" is the first public indication that Ottawa is reconsidering the pharmacy-only rule.

What's next

If Ottawa does loosen the rule, it would reverse the exact policy that has defined Canada's legal pouch market since 2024. The practical question is whether the government would allow all retail channels or create a new age-gated category that includes convenience stores but excludes others.

For now, Zonnic remains the only legal option, sold only in pharmacies, while unauthorized pouches circulate through other channels.

SOURCES:
National Post
CCentral

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