Grammy-winning producer and Miami resident DJ Khaled has invested in nicotine pouch startup Sesh, joining a star-studded roster of celebrity backers as the company seeks to challenge industry leader Zyn. The announcement adds another high-profile name to the growing list of entertainers betting on the alternative nicotine market.
Sesh touts itself as one of the few pouch-makers not backed by Big Tobacco. Khaled is promoting the company’s new raspberry lemon flavor, joining investors including Ashton Kutcher, Post Malone, country musician Zach Bryan, electronic music star Diplo, the Jonas Brothers, and the Chainsmokers, according to the New York Post.
The celebrities are partnering with the company as part of the $40 million it has raised from investors including venture firm 8VC and Troy Link, CEO of jerky giant Jack Link’s. Sesh says it is trying to avoid the mistakes of Juul, the e-cigarette company whose business was upended after being accused of marketing to teenagers. All of Sesh’s celebrity partners are over 30, and the company says it uses age verification at every point of sale.
“We built Sesh differently: no TikTok, no underage-skewing imagery, age verification at every point of sale,” a Sesh spokesperson told the New York Post. “Our partners are investors who believe in the mission, not influencers hired to reach a young audience.”
The global nicotine pouch market is expected to grow from nearly $10 billion this year to $56.7 billion in 2035, according to Global Markets report data cited by the Post. Zyn, owned by Philip Morris International, controlled 26% of the market as of last year. Sesh was not listed among the 15 biggest players, though the company said its revenue grew 533% in the first quarter compared to the same period last year.
Sesh made headlines earlier this year when companies including Palantir installed branded vending machines stocked with the product in their offices. The Food and Drug Administration granted approval for Zyn to sell its products last year and said last month it will allow Zyn to market its products as less harmful than cigarettes. Sesh has permission to sell but is still waiting for FDA approval to market its products. CEO Max Cunningham said the company has spent $15 million of the $40 million raised on seeking FDA approval.
The startup faces regulatory headwinds including New York State’s recently passed “Bro Tax,” which puts alternative nicotine products under the same 75% tax as cigarettes. Sesh hopes other states do not adopt similar measures.
