Increased Regulatory Pressure: The company operates in highly regulated industries (tobacco, vapor, CBD), facing ongoing and evolving scrutiny from federal, state, and international authorities regarding product manufacturing, marketing, and sales, which could lead to significant compliance costs, product restrictions, or market access limitations.

Product Liability Litigation Risk: TPB is subject to a high risk of product liability claims and lawsuits, particularly related to the health effects of its tobacco and vapor products, which could result in substantial legal expenses, damages, and reputational harm.

Declining Traditional Tobacco Sales: The long-term decline in traditional tobacco consumption, driven by health concerns, social trends, and public health campaigns, poses a risk to the company's established product categories and could impact revenue growth without successful diversification.