Philip Morris International said it has launched “large-scale production” of its ZYN nicotine pouches at a new 600,000-square-foot facility in Aurora, Colorado, representing a $600 million investment as U.S. demand for oral nicotine products accelerates. The plant, which began limited production in September 2025 as construction continued, is expected to generate more than $1 billion in economic contributions for the Denver-area suburb as it becomes fully operational in 2026, will host at least 500 full-time employees, and generate upward of $550 million annually in economic benefits statewide.
Category: Business & Finance
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Zimbabwe Hopes PMI Return Stabilizes Tobacco Market
Philip Morris International is set to re-establish its presence in Zimbabwe nearly two decades after exiting the market, with a high-level delegation led by Chief Corporate Affairs Officer Christos Harpantidis scheduled to visit Harare this week following talks between Foreign Affairs Minister Amon Murwira and PMI executives at the World Economic Forum in Davos. Discussions are expected to focus on value addition, local manufacturing, sustainability and ESG standards, aligning with the Government’s Tobacco Value Chain Transformation Plan to grow the sector into a $5 billion industry as planted hectarage for 2025/26 rises 42%.
Industry observers say PMI’s return could help offset reduced purchases from China Tobacco International Group, which plans to cut Zimbabwe orders by up to 15%, potentially stabilizing demand for the country’s 120,000 smallholder farmers. While some analysts caution about global anti-smoking trends, others view the move as renewed investor confidence and a boost to diversification, especially as PMI signals interest in integrating Zimbabwe more deeply into its global supply chain.
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BAT Funds $48M for Organigram’s Sanity Group Acquisition
Organigram Global Inc. revealed that it has entered into a subscription agreement with BT DE Investments Inc. – a wholly-owned subsidiary of British American Tobacco – to fund its previously announced acquisition of Sanity Group GmbH. Under the agreement, BAT will subscribe for 14,027,074 common shares at C$3 ($2.19) each and exercise top-up rights for 9,897,356 additional shares at C$2.335854 ($1.71), generating total gross proceeds of C$65.2 million ($47.6 million).
The proceeds, along with cash on hand and funds from a previously arranged up to $60 million senior secured credit facility, will be used to finance the cash portion of the acquisition, transaction costs, and general working capital. To ensure BAT does not exceed a 30% ownership threshold post-issuance, the company will issue non-voting Class A convertible preferred shares if needed, which can be converted into common shares under specified conditions. Shareholder approval for the acquisition and private placement will be sought at Organigram’s annual and special meeting on March 30, in compliance with TSX rules and related-party transaction regulations. The Board unanimously approved the deals, with BAT’s nominees abstaining from voting.
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Turning Point to Host Q4, FY25 Financial Call March 2
Turning Point Brands, Inc. announced it will host a conference call on March 2, at 9 a.m. ET to review its fourth quarter and full-year 2025 results. Those interested can join via toll-free 800-715-9871 or international 646-307-1963 using Event ID 6640134, with participants asked to dial in at least 10 minutes early. The call will also be webcast live in listen-only mode through the investor relations section of the company’s website, with a replay available approximately two hours after the event.
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Altria Moving Forward with Smoke-Free Products
Altria Group, Inc. reaffirmed its 2026 full-year guidance at the Consumer Analyst Group of New York Conference on February 18, projecting adjusted diluted EPS of $5.56 to $5.72, representing growth of 2.5% to 5.5% from a 2025 base of $5.42. CEO Billy Gifford and CFO Sal Mancuso told investors earnings growth is expected to be weighted toward the second half of the year, driven by a progressive increase in cigarette import and export activity, continued pricing power in the combustibles segment, and capital allocation including share repurchases. The company also emphasized its strategic pivot toward smoke-free products, including its on! nicotine pouch portfolio, positioning reduced-risk categories as a key long-term growth driver as cigarette volumes continue to decline.
“Long term, it’s important to compete in e-vapor with flavored products that meet evolving consumer preferences,” Gifford said. “We are working on a pipeline of products to drive to that future. The proliferation of illicit disposable products, slow pace of FDA authorizations, and the intellectual property landscape remain significant headwinds. We intend to maintain a measured approach to our investments in e-vapor, until the regulatory framework is functioning as intended and enforcement actions meaningfully address the illicit market.”
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BAT Reaffirms FY26 Guidance at Low End of Target
British American Tobacco reaffirmed its full-year 2026 guidance with its presentation at the Consumer Analyst Group of New York Conference today (Feb. 18), signaling results will land at the lower end of its previously issued targets. BAT CEO Tadeu Marroco and Reynolds American President David Waterfieldhe said the group expects constant-currency revenue growth of 3–5%, adjusted profit from operations growth of 4–6% (adjusted for Canada and weighted toward the second half) and adjusted diluted EPS growth of 5–8%. BAT said its smokeless portfolio — including Vuse, glo and Velo — reached more than 31 million adult consumers globally by the end of 2025, contributing 18.2% of its £25.6 billion annual revenue. The company is targeting 50 million smokeless consumers by 2030 and aims for these products to generate half of group revenue by 2035, as it continues its transition toward reduced-risk categories.
“We are committed to actively encouraging adult smokers, who would otherwise choose to continue to smoke, to make a full switch to smokeless alternatives,” Marroco said. “Regulation is not homogeneous globally. This affects not only which products are legally available for consumers, but also communication freedoms and excise levels.
“BAT has taken a consumer-led, multi-category approach from the outset. While initially more complex and costly to execute, it has proven to be the right strategy. Together with leveraging our brand building expertise, and global distribution reach, this enables us to maximize our opportunity – to switch smokers who would otherwise choose to continue to smoke, drive harm reduction, and create value.”
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PMI Talks Smoke-Free Progress at CAGNY
Today (Feb. 18), Philip Morris International outlined its long-term strategy at the Consumer Analyst Group of New York Conference, emphasizing its accelerated shift toward smoke-free products. CEO Jacek Olczak and CFO Emmanuel Babeau said more than 40% of current net revenues now come from smoke-free alternatives and reiterated its goal of reaching two-thirds of total revenue from these products by 2030. For 2026–2028, PMI projects 6%–8% organic revenue growth, 8%–10% operating income growth and 9%–11% adjusted EPS growth, driven by high single-digit to low-teen smoke-free volume increases, strong pricing power and margin expansion. Smoke-free products generated $17 billion in revenue and 180 billion units in volume, delivering more than double the revenue and gross profit per unit compared with combustibles, while operating cash flow is expected to reach about $45 billion over the period.
“Somebody very recently interested in this category of smoke-free products, told me, ‘Jacek, your problem is not that there is too little science about this product. Your problem is that there is too much politics about these products,’” Olczak said. “Because the science is very indisputable what these products offer versus a cigarette. It just takes a while until it really starts penetrating and open the last, if I may say, closed minds in the world.”
Operationally, PMI has smoke-free products available in 106 markets, exceeding the company’s 2025 target, with three of four regions deriving over half of their revenue from smoke-free categories. PMI highlighted early success in Taiwan, where IQOS captured a 6% share in Taipei within three months of launch, and said growth in smoke-free volumes is expected to offset combustible declines. The company is also engaging regulators to expand market access and address illicit trade in the e-vapor segment, while targeting a net debt-to-EBITDA ratio near 2x by end-2026 and increasing dividend growth toward a 75% payout ratio of net profit.
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Tobacco Products Market Projected to Hit $345B by 20230
According to The Business Research Company, the global tobacco products market continues to post steady gains, rising from $281.04 billion in 2025 to a projected $290.96 billion in 2026 at a CAGR of 3.5%, with further growth expected to reach $344.75 billion by 2030 at a 4.3% CAGR. Sustained cigarette consumption in emerging economies, strong brand loyalty, expanding retail networks, and duty-free sales, alongside a shift toward smokeless, heated and next-generation nicotine products are expected to be the driving market forces. According to the report, future expansion will be supported by tighter regulations on combustible products, innovation in nicotine delivery systems, digital age-verification tools and product traceability investments. Regionally, Asia-Pacific led the market in 2025, followed by North America, and is expected to maintain its dominance amid continued consumption growth across key emerging markets.
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Kyrgyzstan Considers Legalizing Hookah Bars
Kyrgyzstan’s Ministry of Economy and Commerce opened discussions on a draft law to overhaul regulations governing hookah bars, aiming to legalize and license the sector while reducing corruption and boosting state revenues. Developed at the request of the Prime Minister in November 2025, the proposal would allow hookah smoking in specialized licensed establishments, introduce mandatory licensing, enforce sanitary and fire safety standards, and create an official register of operators. Although current legislation bans smoking in public places, at least 33 specialized hookah bars are operating in Bishkek, with authorities collecting millions of soms in fines — penalties officials say are often treated by businesses as routine costs rather than deterrents. (1 som equals 0.011 USD)
Citing international examples such as Germany and United Arab Emirates, where licensing and strict compliance regimes are in place, the ministry argues that regulated legalization is more effective than outright bans, which in places like Kazakhstan have reportedly driven parts of the market underground. Business groups, including Horeca Club and Kyrgyz Obshchestvo, have expressed support for the licensing model, saying it would bring transparency, reduce corruption risks, and align the sector with public health and safety standards.
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Pouch Boom Disrupting Scandinavian Tradition: Report
A report tracking more than 19 million online purchases between 2018 and 2025 suggests nicotine pouches are rapidly overtaking traditional snus in Sweden and Norway, signaling a cultural shift in Scandinavia’s long-standing oral nicotine market. The research found that tobacco-free nicotine pouches now account for the largest share of oral nicotine sales on leading regional e-commerce platforms, as consumers move away from tobacco-based snus. Globally, nicotine pouch sales have surged from roughly 292 million units in 2018 to more than 20 billion in 2023, with strong growth also reported in the UK and U.S. Study co-author Dr. Marina Murphy of Haypp Group said many users perceive pouches as a lower-risk alternative, underscoring the need for public health authorities to closely monitor the fast-evolving category and its broader implications.