Philip Morris USA asked the U.S. Court of Appeals for the Eleventh Circuit to affirm a lower court decision vacating a U.S. Food and Drug Administration rule that would have required graphic health warnings on cigarette packaging. The company argued that the district court correctly found the FDA failed to follow required administrative procedures when developing the rule. According to Law 360, the appeal centers on whether the agency’s rulemaking process complied with federal standards, after the district court struck down the regulation on procedural grounds.
Tag: Philip Morris
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PMI Principal Partner of Ferrari Hypersail Racing Project
Philip Morris International has been announced as the principal partner of Ferrari Hypersail, a new offshore racing initiative led by Ferrari that applies Formula 1–grade engineering to a 30-meter full-foiling monohull designed for renewable-energy-powered ocean racing. The project, scheduled for launch and sea trials in 2026, is positioned as a platform for cross-industry innovation in aerodynamics, energy efficiency, and advanced control systems.
PMI CEO Jacek Olczak linked the partnership to the company’s science-driven, smoke-free technology strategy, while Ferrari CEO Benedetto Vigna described Hypersail as a real-world testing ground for extreme-condition innovation. PMI will also debut an updated visual identity on the vessel, marking the first external use of its new branding.
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PMI to Double Zyn Investment in Ukraine
Philip Morris International said it plans to invest $10 million in 2026 to expand the nicotine pouch category in Ukraine and launch a new line of Zyn, following a $5 million investment in 2025. According to Interfax Ukraine, the company said funds will support portfolio expansion, infrastructure, and adult consumer awareness. The new “dry” pouches contain no water or glycerin, are smaller, less flavored, and range from 1.5 mg to 6 mg nicotine across nine SKUs. Initial supply will be imported from Sweden.
The company estimates nicotine pouches in Ukraine could grow 20% annually. PMI cited Zyn’s U.S. marketing authorization from the U.S. Food and Drug Administration as supporting further investment. PMI reported that smoke-free products were available in 105 markets at the end of 2025, used by 43 million adult consumers, and accounted for 41.5% of net revenue.
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RJR Seeks to Block Lawyer’s Live Testimony in Altria Dispute
R.J. Reynolds Vapor Co. asked a North Carolina court to quash a trial subpoena that would require one of its in-house attorneys to testify in person at an evidentiary hearing in an ongoing royalty dispute with Altria Group. The company argues that a previously recorded deposition of the attorney should suffice, saying live testimony would be unnecessary and burdensome.
The dispute centers on royalty obligations tied to vaping technology and agreements between the rival firms. Reynolds maintains that compelling its lawyer to appear would intrude on privileged matters and exceed what is needed for the court to assess the evidentiary issues. The matter is before a judge in North Carolina, who will decide whether the deposition recording can replace in-court testimony.
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PM Offers IQOS Specials to Promote Korean Expansion
Korea Philip Morris said it will expand retail availability of its new “Electric Purple” color for the IQOS Iluma i One to major convenience stores nationwide from May 2. The color, first introduced on April 10 through the official IQOS online store and nine branded outlets, features a deep purple tone with a bluish tint. To mark the wider rollout, the company will run a promotion through May 20 a discounted price in the 30,000-won ($19.80) range for its devices in all colors.
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PMI Releases Value Report 2025, Sets Value Plan 2030+
Philip Morris International released its Value Report 2025, marking the completion of its 2025 Roadmap and introducing a new Value Plan 2030+ to guide future growth. The report outlines progress in PMI’s shift toward smoke-free products and details performance across business transformation, environmental, and social metrics. In 2025, PMI reported around 43.5 million adult users of its smoke-free products across 106 markets, with smoke-free net revenues reaching $16.9 billion, representing 41.5% of total annual net revenues.
The company also reported 98% coverage of shipment volumes with youth access prevention programs in indirect retail channels, 91% coverage with anti-littering programs for cigarette butts, and 76% of employees having access to structured lifelong learning opportunities. Among agricultural metrics, PMI said 99.6% of contracted farmers supplying tobacco achieved a living income, while 99.3% of tobacco purchased was at no risk of net deforestation. PMI reported a 46% reduction in absolute Scope 1 and 2 greenhouse gas emissions compared with 2019 and a 31% reduction in Scope 3 Forest, Land, and Agriculture emissions compared with 2010.
PMI said its Value Plan 2030+ will focus on six priorities: consumers and product health impact, circularity, climate change, nature and biodiversity, its workforce, and workers across its value chain. The company stated the report was prepared with reference to Global Reporting Initiative standards and guidance from the International Sustainability Standards Board.
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Japanese Consumers Facing Double Hit
The first phase of Japan’s tax increases on tobacco products and corporate income will take effect April 1, marking the first phase of a broader revenue plan to finance expanded defense spending, with additional increases planned for October and January 2027. Both conventional cigarettes and heated tobacco products will be affected, with the long-standing tax gap between the two categories set to narrow. The government aims to raise ¥1.3 trillion ($8.2 billion) in fiscal 2027 through staged hikes on tobacco, corporate, and personal income taxes to help fund a ¥43 trillion ($271 billion), five-year defense buildup that began in 2023.
In response to the new corporate taxes, Philip Morris Japan said it will raise prices by ¥40–¥50 (25 to 32 cents) per pack on 50 heated tobacco products from April 1, while Japan Tobacco plans ¥20–¥30 (13 to 19 cent) increases on 37 products. Manufacturers have not yet outlined pricing responses for October’s tax hike.
The Finance Ministry estimates tobacco tax revenue will increase by ¥44 billion ($277 million) in fiscal 2026, ¥116 billion in 2027 ($731 million), and ¥212 billion ($1.3 billion) annually thereafter as additional levies take effect. The measures come as Japan seeks to secure more than ¥9 trillion ($56.7 billion) in defense spending for fiscal 2026, reaching its 2% of GDP target ahead of schedule.
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Baltimore Argues 1998 MSA Doesn’t Cover Cigarette Litter
The City of Baltimore told a Maryland state court that the 1998 Master Settlement Agreement does not shield tobacco companies from liability in its lawsuit over environmental harm caused by nonbiodegradable cigarette filters. The city is seeking to proceed with claims against R.J. Reynolds Tobacco Company, Philip Morris USA, and Liggett Group LLC, arguing that the decades-old settlement addressed healthcare costs related to smoking, not municipal expenses tied to cigarette butt litter and environmental cleanup. Baltimore contends that its suit targets a separate issue involving plastic filter waste and the burden placed on city services, and therefore should not be dismissed on preemption grounds.
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Appeals Court Vacates 93A Defense Verdict in Philip Morris Case
The Massachusetts Appeals Court ruled that a jury does not need to find liability on underlying tort claims to hold a tobacco company accountable under Chapter 93A, the state’s consumer protection statute. The decision comes in the case of Peter Agnitti, who sued Philip Morris USA over the death of his wife, alleging negligence, fraud, misrepresentation, breach of warranty, and Chapter 93A violations.
At trial, the Superior Court instructed jurors that a 93A violation could only be found if they also found Philip Morris liable for fraud or misrepresentation. The jury returned a defense verdict on all counts. On appeal, the court found that the instruction improperly conflated 93A liability with fraud, noting that a 93A claim based on deceptive acts does not require proof of reliance or intent to deceive. The panel also clarified that the plaintiff’s pre-charge objections preserved the issue for appeal under Rule 51(b).
The court emphasized that Chapter 93A is a standalone statutory cause of action, intended to protect consumers independently of other tort claims. Citing evidence that Philip Morris misrepresented the risks of smoking and marketed “light” and “low-tar” cigarettes as safer alternatives despite knowing otherwise, the Appeals Court vacated the 93A judgment and allowed the claim to proceed.
Legal experts say the ruling reinforces that 93A claims are sui generis and provides guidance on preserving jury instruction objections at trial.
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PMI Donates Drones to Help Lithuania Fight Smuggling
Philip Morris International donated seven drone systems to Lithuania to support efforts to combat cigarette smuggling, particularly illicit shipments transported by balloons from neighboring Belarus. The drones, equipped with high-resolution cameras and thermal imaging, will be operated by the Lithuanian Riflemen’s Union to monitor landing sites and track individuals collecting contraband, enhancing surveillance capabilities rather than direct interception. The move comes as Lithuanian authorities intensify enforcement against a persistent illicit tobacco trade that also involves road transport, with officials noting the challenge remains ongoing despite seizures and arrests.