A company from Florida, which started operations in May, secured an exclusive deal to supply flavored nicotine pouches to commissaries in 118 Bureau of Prisons facilities. This arrangement is under the spotlight because the brand ‘mindSHFT,’ offering 6-mg pouches, lacks FDA authorization for marketing and sale in the U.S., according to FDA data reviewed by CBS News. The product is not available for commercial sale either.
Concerns emerged after CBS News began investigating the deal and an anonymous federal employee raised these concerns with the DOJ’s inspector general and Attorney General Todd Blanche. On Thursday, a senior prison official temporarily halted the arrangement, instructing prisons to cease procurement until further notice, as per an internal memo dated Sept. 3 reviewed by CBS News.
The Bureau of Prisons is responsible for the health and safety of individuals in its custody. Improperly authorized or contaminated products could lead to serious consequences,” the whistleblower noted in a complaint.
Nicotine pouches were introduced to federal prisoners in an attempt to mitigate contraband tobacco and nicotine products within the system, stated a BOP spokesperson. Following consultations with the FDA, BOP suspended further purchases while reviewing the product’s legality.
SHFT Enterprise Holdings LLC, the supplier, was formed in Florida shortly after BOP released a ‘request for information’ on vendors capable of producing FDA-approved nicotine pouch products for prisoners. While the BOP never issued a formal request for proposals, its internal memo authorized sales, making SHFT Enterprise Holdings the sole vendor.
SHFT sold the pouches to BOP at $6.99 per tin, while inmates pay $9.10 each, with high demand reported. Federal law prohibits the sale of non-FDA-authorized nicotine products.
After inquiries into SHFT’s claims led to suspension of sales, BOP consulted the FDA. The vendor alleged legal sales and FDA approval to the bureau, though legal experts indicated unauthorized products are deemed ‘adulterated.’
As of now, only two companies have FDA authorization for selling nicotine pouches, while SHFT’s authorization status remains unclear.
SHFT Enterprise Holdings is affiliated with individuals from Redcon1, a fitness supplement firm. Former Redcon1 staff members are listed as contacts for SHFT on governmental records.
Despite no formal connections to the company, CBS News identified potential business ties between SHFT contacts and Redcon1’s former leadership.
Correctional staff expressed concerns over the introduction of nicotine pouches, referencing health, safety, and security issues, especially since tobacco products have been banned in federal prisons since 2014.
The introduction of nicotine pouches is part of efforts to address financial struggles of the prison trust fund, per a May memo from Director William Marshall.
Despite previous financial losses, the prison trust fund has recently become profitable once again, with or without the sales of nicotine products.