OLAF helps dismantle major counterfeit nicotine pouch factory in Lithuania

Press Release No 18/2026

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The European Anti-Fraud Office (OLAF) has provided key intelligence that led Lithuanian authorities to uncover and dismantle a large illegal factory producing counterfeit nicotine pouches in Kaunas, Lithuania. The successful raid resulted in a seizure of more than 330.000 boxes with trademarks of well-known manufacturers and the discovery of nicotine that is classified as an acutely toxic substance posing significant health risks if not handled under strict safety conditions.

The operation started when OLAF identified indications of illegal manufacturing operation and shared its findings with the Lithuanian Customs Criminal Service (Muitinės kriminalinė tarnyba-MKT). Building on this intelligence, Lithuanian authorities launched an investigation that led to the discovery of a fully operational and highly sophisticated production factory manufacturing, packaging and labelling nicotine pouches bearing the trademarks of well-known brands.

During the search, Lithuanian authorities seized around 30 different types of nicotine pouches of various flavours and different nicotine contents in more than 330.000 boxes. Authorities, together with OLAF, also found significant quantity of finished but unlabelled nicotine pouches, as well as large amounts of raw materials, including liquids and bulk substances, intended for production. The illegal factory is presumed to have supplied nicotine pouches to markets in the Scandinavian and Baltic countries, as well as the United Arab Emirates. You can read more about the findings in the press release of the Lithuanian Customs Criminal Service.

OLAF Director-General Petr Klement said: This is an exemplary case of how OLAF's work turns information into action. When counterfeiters copy well-known brands, they are not only stealing their name but also taking advantage of consumers' trust. Illicit nicotine products can then reach people without the safety checks that apply to legitimate products. By identifying suspicious activities and sharing intelligence with partners, we help disrupt these illegal networks before they could cause further harm to European citizens and economy."

Nicotine pouches are part of a growing market for alternative nicotine products in Europe which has attracted increasing demand in recent years.

Such illicit products can pose risks to consumers because they are produced outside regulated supply chains while counterfeit sales harm legitimate businesses by infringing on their intellectual property rights.

OLAF mission, mandate and competences:

OLAF's mission is to detect, investigate and stop wrongdoings related to EU funds.

OLAF fulfils its mission by:

• carrying out independent investigations into fraud and corruption involving EU funds, so as to ensure that all EU taxpayers' money reaches projects that can create jobs and growth in Europe;
• contributing to strengthening citizens' trust in the EU Institutions by investigating serious misconduct by EU staff and members of the EU Institutions;
• developing a sound EU anti-fraud policy.

In its independent investigative function, OLAF can investigate matters relating to fraud, corruption and other offences affecting the EU financial interests concerning:

• all EU expenditure: the main spending categories are Structural Funds, agricultural policy and rural development funds, direct expenditure and external aid;
• some areas of EU revenue, mainly customs duties;
• suspicions of serious misconduct by EU staff and members of the EU institutions.

Once OLAF has completed its investigation, it is for the competent EU and national authorities to examine and decide on the follow-up of OLAF's recommendations. All persons concerned are presumed to be innocent until proven guilty in a competent national or EU court of law.

For further details:

Pierluigi CATERINO
Spokesperson
European Anti-Fraud Office (OLAF)
Phone: +32(0)2 29-52335
Email: olaf-mediaec [dot] europa [dot] eu (olaf-media[at]ec[dot]europa[dot]eu)
https://anti-fraud.ec.europa.eu
LinkedIn: European Anti-Fraud Office (OLAF)
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Bluesky: euantifraud.bsky.social