How Canada’s Menthol Ban Shaped the Native Cigarette Market

Canada’s approach to banning menthol was phased, starting provincially before federal action:

• May 2015 – Nova Scotia: First jurisdiction in the world to ban menthol cigarettes [citation:2].
• 2015–2016 – Alberta, New Brunswick, Quebec, Ontario: Followed with their own bans [citation:2].
• October 2017 – Federal ban: Closed the loophole for remaining provinces (BC, Saskatchewan, Manitoba, PEI, Newfoundland, territories) [citation:2].

The bans removed the exception for menthol from the Tobacco Act’s prohibited additives schedule. This eliminated the legal sale of menthol cigarettes from conventional retailers like gas stations, grocery stores, and convenience shops [citation:2].

Research using retail scanner data from Ontario and British Columbia quantified the ban’s impact:

• Ontario menthol sales ↓ 93%: From 596 to 40 packs per 1,000 people (January–June 2017 vs. 2016) [citation:3][citation:8].
• Non-menthol sales ↑ 0.4%: Minimal substitution toward regular cigarettes [citation:3].
• Menthol-suggestive descriptors surged: Sales of cigarettes with ‘green’, ‘blue’, ‘silver’, ‘fresh’ in the name increased 11% in Ontario vs. 3% in BC (which had no ban at the time) [citation:3].
• Small business revenue loss: A Regina smoke shop reported 11% revenue drop after the ban, with owner Ashok Brahmania noting: “The government is making big mistakes and losing lots of revenue on menthol product” [citation:5].

When provincial and federal bans went into effect, they applied to all retail outlets, including First Nations reserves. However, enforcement on reserves has historically been inconsistent, and the unique legal status of Indigenous lands created a grey market [citation:4].

What the Research Found

• No overall increase in illicit purchasing: A comprehensive ITC study (2016–2018) found that among smokers who bought from First Nations reserves, there was no statistically significant increase in purchasing of either menthol or non-menthol cigarettes after the ban [citation:4].
• But menthol smokers did shift to reserves: Among pre-ban menthol smokers who continued using menthol post-ban, 54.7% bought their last pack from a First Nations reserve [citation:4][citation:6].
• Low overall illicit market growth: Only 7.9% of pre-ban menthol smokers were confirmed to be smoking a verified menthol brand at follow-up, suggesting most either quit, switched brands, or found limited supply [citation:4].

The Discrepancy: What the NBER Study Found

An earlier NBER study (2020) reached a different conclusion: adult smokers shifted purchases from gas stations/grocery stores to First Nations reserves. However, this study examined all cigarette purchases (menthol + non-menthol), not menthol specifically, which critics note may have conflated effects [citation:1][citation:4].

While the academic debate continues about the scale of illicit purchasing, one outcome is clear: native-manufactured menthol cigarettes became the primary legal source for Canadians who wanted menthol.

• Online sales exploded: With conventional retail banned, websites like Cigstore.ca — operating from Indigenous territories — became the most accessible option for menthol smokers across Canada.
• Product innovation: Native brands expanded menthol offerings, including capsule cigarettes (Pop N Smoke, Canadian Crush) that allow adjustable cooling intensity.
• Price advantage: Native cigarettes were already cheaper (tax exemptions), but the ban made them the only menthol option for many, accelerating adoption [citation:1].

Menthol Products Available at Cigstore.ca Today

• Canadian Menthol ($29.00): Smooth, balanced mentholtobacco. One of the most popular post-ban alternatives.
• Playfare Menthol ($35.00): Stronger menthol presence, preferred by former Newport smokers.
• Pop N Smoke Menthol ($37.50): Capsule-activated menthol — squeeze the filter for adjustable cooling.
• Pop N Smoke Apple Mint, Blueberry Mint ($37.50): Fruit + menthol blends for flavored cooling sensation.
• Canadian Crush series ($50.00): Capsule cigarettes with tropical, grape, and cherry menthol options.

The primary justification for banning menthol was to reduce youth smoking initiation. The evidence from Canada suggests the policy failed this objective:

• NBER study (February 2020): “Survey data confirm that provincial menthol bans significantly increased non-menthol cigarette smoking among youths, resulting in no overall net change in youth smoking rates” [citation:1].
• Why? Youths simply substituted from menthol to non-menthol cigarettes rather than quitting. The ban eliminated one flavor but didn’t address the underlying demand [citation:1].
• Adult smoking behavior: The study found “no significant impact on smoking rates or quitting behaviors for either youths or adults” [citation:1].

Major tobacco manufacturers didn’t simply accept the ban — they innovated around it:

• Menthol-suggestive packaging: As noted above, sales of ‘green,’ ‘blue,’ and ‘silver’ labeled cigarettes increased 11% in Ontario after the ban — products that look like menthol but contain no menthol [citation:3].
• Capsule cigarettes: While menthol itself is banned, “flavour capsules” containing other cooling agents (or requiring consumers to “crush” for flavor) exist in a regulatory grey zone.
• Shift to smokeless alternatives: Some companies pivoted to nicotine pouches (Zonnic) and other products not subject to the same flavor restrictions [citation:7].