Lithuanian authorities have dismantled a large illegal factory in Kaunas that produced counterfeit nicotine pouches. The products are believed to have been headed for Scandinavia, the Baltic countries and the United Arab Emirates.
DR reports that decisive intelligence from the European Anti-Fraud Office, known as OLAF, allowed Lithuanian authorities to uncover and close the site. The factory was located in Kaunas, Lithuania’s second largest city, and more than 330,000 tubs of counterfeit pouches were seized.
According to DR, the boxes carried labels and logos from well known brands, as if they were genuine products. Among them was the brand Velo. Berlingske reports the same brand name and notes OLAF’s assessment that the factory supplied the Scandinavian market.
OLAF’s Director-General, Petr Klement, stated in the agency’s announcement that illegal nicotine products can reach consumers without the safety checks that apply to legal products. In its press release of August 6, 2026, OLAF said the case was handled together with the Lithuanian Customs Criminal Service.
The same release describes around 30 different types of pouches, in various flavors and nicotine strengths. Investigators also found finished but unlabeled pouches, along with liquids and bulk substances intended for continued production. OLAF added that the seized nicotine is classified as an acutely toxic substance.
Raid took place in mid-July
The Lithuanian outlet Kas Vyksta Kaune reported on August 1, 2026 that customs investigators found the production facility in mid-July. It was located in premises belonging to a company near Kaunas, and the production line was fully operational, according to the report.
OLAF and the Lithuanian authorities describe the destinations as presumed rather than documented. The agency says the factory is believed to have supplied markets in Scandinavia, the Baltic countries and the United Arab Emirates. No specific intercepted consignments in those countries have been published.
Denmark’s industry association for smokeless nicotine products, Nikotinbranchen, told Ritzau that this is the first time it has heard of counterfeit nicotine pouches. Director Inger Schroll-Fleischer described the copies as another challenge in a market where illegal sales already take place openly on websites and social media.
Schroll-Fleischer also said it would be naive to assume that the Kaunas factory is an isolated case, as reported by DR.
Why the case is surfacing now
OLAF states that the operation began after it identified indications of an illegal manufacturing operation. The agency passed its findings to the Lithuanian Customs Criminal Service, which led to the July investigation and the raid.
The official press release was published on August 6 and 7, 2026. Danish outlets, including DR and Berlingske, reported the case on August 22, 2026, as the Nordic industry responded to the findings.
