AIR-owned Al Fakher plans for product and territory expansion

Since its 2018 debut in travel retail, Al Fakher has posted strong double-digit growth each year, driven largely by its presence in airports. Its parent company, Advanced Inhalation Rituals (AIR) is now widening its reach with a new focus on borders while simultaneously expanding into smoke-free categories.

The expanded product portfolio now operates under a holding company structure; AIR, designed to support category growth beyond traditional flavored shisha molasses. This framework enables the company to develop vapes, nicotine pouches, and products like OOKA alongside its core molasses business.

The structure has also opened new commercial avenues that go beyond conventional retail offerings. “We’ve broadened the platform, and that alone creates a much larger opportunity for the business. It’s exciting because we can offer more,” comments Ziad Jabre, Vice President GTR & Heritage Markets at AIR. “We’re no longer approaching retailers with only flavored shisha; we now bring a broad portfolio of nicotine pouches, vapes and non-nicotine offerings.”

AIR is launching pod-based vapes in Q2 2026, under the Al Fakher brand: “In line with our global ESG commitments, we are gradually moving away from single-use plastics and looking into pioneering new packaging. To further address growing global concerns surrounding vape battery disposal, we are introducing our new pod-based vape system,” says Jabre.

The format has gained traction in Europe and other parts of the world, though the Middle East still favors disposable vapes. AIR views the pod system as the right strategic direction despite regional preferences. The device will also carry the Al Fakher brand name, which is widely recognized in the region due to its reputation.

Nicotine pouches

AIR is entering the nicotine pouch category in Q1 2026 with the Al Fakher flavors that leverage the company’s shisha heritage. Two Apples, Grape Mint, Spearmint and Blueberry Mint will launch first, translating the company’s most recognized shisha profiles into pouch format.

“Who better to launch nicotine pouches anchored in the most important shisha tobacco flavors (Two Apples & Grape Mint) than the global leader in flavored shisha molasses?” says Jabre.

Development took considerable time, because getting the flavors right matters – consumer expectations for AIR remain anchored to the company’s shisha reputation.

“The project has been in the works for a while,” Jabre says. “And to get the flavors right, these things take time, as we are launching under Al Fakher, there is an expectation of providing the best flavors and experience that is synonymous with the Al Fakher brand.”

Border expansion and premixed demand

While advancing its smoke-free portfolio, AIR continues to strengthen its traditional flavored shisha presence. “We are set to broaden our reach by incorporating border shops into our distribution strategy, an expansion that will further strengthen our position and unlock new avenues for growth in the years ahead,” Jabre says.

Core flavors continue to anchor the shisha category, but purchasing behavior is evolving as travelers show interest in combinations that offer layered flavor experiences and convenience. “We are witnessing a notable rise in demand for premixed varieties,” Jabre says. “In response, we have been expanding our portfolio through our Crafted Mixes — and will continue to do so — to meet and anticipate this growing consumer preference.”

Within travel retail, gifting represents about 10% of the tobacco category, with cigars accounting for most of that share. In the flavored shisha segment, purchases are more often made by travelers buying on behalf of someone who requested the product rather than as gifts.

Herbal alternatives and sustainability

Changing regulations and taxation continue to shape the tobacco landscape. In markets where flavored tobacco faces restrictions or high duties, consumers are turning to herbal options.

AIR first entered the herbal/tea-based molasses segment in 2014 with Al Fakher, and reintroduced it in 2023 under the brand name, Zodiac. The line remains niche but plays a strategic role in markets such as Australia, where alternatives have gained traction. The company views the segment as a strategic response to shifting regulations and evolving consumer expectations.

Packaging and logistics have become key areas of focus for AIR’s sustainability agenda. The company has replaced plastic tubs with non-plastic alternatives for its 250g format. It has also switched to recycled cardboard and shifted from air to sea freight where possible and is continuing to investigate reducing packaging where feasible.

“While these measures mark important progress, sustainability remains a continuous journey that the company is committed to advancing,” Jabre adds.