Tag: Zyn

PMI Settles D.C. Flavor Ban Violations Case

Image: PMI
Swedish Match North America (SMNA) will pay $1.2 million to settle an investigation into violations of Washington D.C.’s flavored tobacco ban, reports Reuters.
The District of Columbia attorney general’s office accused SMNA of facilitating online sales of “tens of thousands” of flavored Zyn nicotine pouches to D.C. consumers between Oct. 1, 2022, when the ban was enacted, and June 30, 2024.
SMNA parent company Philip Morris International must now monitor its distributor’s compliance with D.C.’s ban quarterly and stop sales of flavored Zyn pouches through Zyn.com and related e-commerce platforms.
Nicotine pouches became the second most commonly used tobacco product in the U.S. after combustible cigarettes, according to the Centers for Disease Control and Prevention.
PMI suspended sales on Zyn.com after it had been issued a subpoena by the D.C. attorney general earlier this year.
Swedish Match would continue to focus on its brick-and-mortar stores, PMI said in a statement e-mailed to Reuters.
.
December 16, 2024
Zyn Sued for Overcharging

TR Archive Photo
Swedish Match North America is being sued for allegedly overcharging U.S. customers for its popular tobacco-free Zyn nicotine pouches.
The class action lawsuit, filed on Monday in federal court in Richmond, Virginia, alleges that the Philip Morris International subsidiary is violating federal and state antitrust laws concerning the market for modern oral nicotine pouches.
The plaintiff, a resident of Florida, claimed that Swedish Match illegally gained monopoly power through various business practices aimed at eliminating rival Dryft from the market, Reuters reports.
Swedish Match now has an estimated 80 percent of the market for nicotine pouches, which the company sells in different flavors and strengths for about $6 a tin, according to the lawsuit.
In a statement, Philip Morris, which was not named as a defendant, said, “We believe the plaintiff’s claims are without merit, and we intend to vigorously defend against them.
Marlboro maker Philip Morris, in 2022, acquired the Swedish tobacco and nicotine products company for $16 billion. Philip Morris has stated an ambition to move away from health-harming cigarettes.
The consumer lawsuit seeks class action status for Zyn consumers and damages of more than $5 million.
November 20, 2024
The Zyn Marketing Fallacy

Photo: Swedish Match North America
Blaming the manufacturers for irresponsible marketing is a red herring.
By Peter Clark
The social media presence of nicotine pouches has recently come under fire from public health experts. For example, Jai Surana believes that “aggressive marketing” has contributed to the spike in popularity in this product category.
Some perceive that nicotine pouches and e-cigarette markers present their products as a safe alternative to tobacco. With this perception of tobacco substitutes, coupled with the appealing variety of flavors, many are worried that kids will start using these products. Zyn’s robust meme culture and numerous influencers only fuel misconceptions about its marketing.
Contrary to the immersive online subculture of Zyn, nicotine pouches are not an exploding health epidemic among teens. The headlines of the droves of nicotine-addicted youth are exaggerations.
Blaming the manufacturers for irresponsible marketing is nothing but a red herring. Because most nicotine users are adults, many content producers are unaffiliated with producers, and the marketing hasn’t effectively targeted teens.
Despite the public health crusade to shield children from nicotine pouch advertisements on social media, only a minority of kids are using these products. The largest demographic for nicotine pouches is the “35–45” age group, making up 60 percent of the market. Per the Centers for Disease Control and Prevention, most pouch users are either current or former smokers. Most of the evidence suggests that most Zyn users are adults trying to quit smoking or are getting their nicotine fix when smoking isn’t an option.
How many kids use nicotine pouches? The number of teens using these products is minuscule. In 2024, only 1.8 percent of “middle school and high school students reported currently using nicotine pouches.” This pales in comparison to the significantly higher numbers of teens smoking in the 1990s. A jaw-dropping 16.8 percent of high school students were “frequent smokers” in 1999. This was still only a minority of teens but significantly higher than the number of kids currently using nicotine pouches.
Yes, nicotine pouches have social media sites, but what about the third-party content producers? There is a lot of finger-wagging at nicotine pouch companies for Instagram posts lacking warning labels, but will a Zyn fan account adhere to market guidelines? The problem is that internet culture tends to take on a life of its own. The marketing edicts of the Food and Drug Administration are not even a forethought to most Zyn enthusiasts making humorous memes.
There is no way to limit or regulate third-party content. The best companies can do is comply with the current laws and acknowledge that nicotine is addictive on official social media content. Attempting to shut down all third-party content is a game of whack-a-mole. For example, Juul failed at many attempts to remove underage fan sites from social media.
Even the high-profile Zyn influencers, from Joe Rogan to Tucker Carlson, are unaffiliated with the brand. Philip Morris International hasn’t paid anyone to promote its pouches. PMI spokesman Corey Henry has stated, “Zyn doesn’t have partnerships or product promotion with any social media influencers or celebrities.” Before Carlson’s culture war on Zyn and his recent venture into the market, PMI tried to distance itself from his more outlandish claims about the product.
As mentioned previously, youth nicotine pouch use is low. However, has the social media market influenced teen use? Less than half of teens and young adults surveyed in a Georgetown study were even aware of the existence of this product. Less than a quarter of nontobacco-using participants were familiar with nicotine pouches. If Zyn is trying to market its pouches to young people, their plan has failed. Only young people predisposed to using nicotine are familiar with nicotine pouches.
At first glance, it is easy to attack nicotine pouch brands like Zyn for irresponsible marketing, but it is not the crisis that experts and the press are making it out to be.
Only a small number of teens are using nicotine pouches, most of the egregiously irresponsible “marketing” is coming from third-party creators, and there is little evidence that the official product marketing is pushing kids toward nicotine pouches. If we want to protect kids from nicotine addiction, we should attack the social issues driving them to use nicotine, not flashy marketing.
Peter Clark is a fellow with the World Vapers’ Alliance. You can follow him on X at @blog_logic.

October 24, 2024
PMI Seeks Dismissal of Zyn Lawsuit

Photo: PMI
Philip Morris International and its Swedish Match North America subsidiary have asked a U.S. federal judge in Connecticut to dismiss a lawsuit claiming they falsely marketed nicotine pouches as safe and targeted adolescents, according to the USA Herald.
In July, Florida resident Ethan Norris filed a court case claiming that Philip Morris and Swedish Match marketed Zyn nicotine pouches to adolescents by promoting them as a healthy alternative to tobacco. The lawsuit suggests the companies misled consumers by highlighting the pouches’ “food-grade flavorings” and “natural additives.” Norris further alleges that the companies employed social media influencers to target younger consumers.
In its motion filed Sept. 24, PMI argues that the lawsuit is preempted by federal law as the labeling of its Zyn nicotine pouches is approved by the U.S. Food and Drug Administration.
In a separate motion, Swedish Match North America made a similar argument and added that because Norris is a Florida resident who purchased and used the products in Florida, the case has no direct connection to Connecticut.
PMI urged the court to dismiss the lawsuit or require Norris to provide a more specific complaint.
September 30, 2024
PMI to Further Expand U.S. Zyn Production

Photo: PMI
Philip Morris International’s Swedish Match affiliate will invest $232 million to expand the production capacity of its Owensboro, Kentucky, USA, manufacturing facility, which produces the popular Zyn nicotine pouches.
The expansion is expected to create an additional 450 direct jobs with an ongoing annual economic impact of $277 million and 410 indirect jobs for the Commonwealth of Kentucky.
“Philip Morris International’s Swedish Match affiliate has been an important partner and job creator in this region for many years, and I’m excited to see this incredible new investment and the 450 great job opportunities it is creating for families in Owensboro and the surrounding region,” said Kentucky Governor Andy Beshear in a statement.
Construction of the expanded facility is already underway, including adding more production space. Progressive production increases are expected during the project, which is targeted for completion by the second quarter of 2025. The construction phase alone is expected to create nearly 2,800 jobs and have an economic impact of about $414 million.
In addition to facility expansion and ongoing optimization of processes to increase capacity progressively over the coming quarters, the Kentucky facility will move from a 24-hour, five-days-per-week schedule to a 24-hour, seven-days-per-week schedule to boost production, starting in the fourth quarter of this year.
The Swedish Match Owensboro facility currently has about 1,100 employees. The ongoing expansion of the facility in Kentucky is expected to provide around 900 million cans of capacity by 2025.
In July, PMI announced an investment of $600 million over the next two years through its U.S. affiliate to open a nicotine pouch manufacturing facility in Aurora, Colorado. The Aurora facility and Owensboro expansion are designed to provide the capacity needed in the near term and midterm to meet the ferocious U.S. demand for Zyn.
August 27, 2024
PMI to Expand Zyn Production

Photo: PMI
Philip Morris International will invest $600 million in in a factory in Aurora, Colorado, USA, to help meet U.S. consumers’ ferocious appetite for the company’s Zyn nicotine pouches. The factory is poised to begin operations by the end of next year with regular production starting in 2026.
“PMI and its U.S. affiliates are accelerating their mission to move adults who smoke away from cigarettes in the U.S. by investing in new U.S. manufacturing capacity to meet the increasing demand for nicotine options that are scientifically substantiated as better alternatives,” said PMI Americas President and U.S. CEO Stacey Kennedy in a statement.
“We believe Colorado is likeminded in its commitment to innovation, economic opportunity and public health, and we’re eager to work with the state and its talented workforce as we expand our U.S. manufacturing presence.”
Sales of Zyn jumped 80 percent in the first quarter, leaving PMI struggling to keep up with demand. Retail stores have been experiencing Zyn shortages, with some even limiting the number of cans customers can buy each month.
Supply was further constrained after the company decided to halt online sales nationwide in June following a subpoena in the District of Columbia asking for information on the sale of flavored pouch products that are banned there.
PMI is also increasing production of Zyn at its factory in Owensboro, Kentucky. In addition to meeting U.S. demand, the investments will also help create capacity for exports, according to PMI.
Zyn accounted for more than 70 percent of the $8.6 billion nicotine pouch market in 2023, according to Vaping360. Given the relatively young age of the category, there is little brand loyalty, and analysts believe continued supply constraints may prompt some consumers to defect to other brands.
July 16, 2024
PMI Suspends Zyn Sales Due to DC Probe

Photo: Swedish MAtch
Philip Morris International halted sales of Zyn nicotine pouches on its U.S. website as Washington, D.C., officials investigate the company’s compliance with the district’s ban on the sale of flavored tobacco products, reports The Wall Street Journal.
On June 17, the company’s Swedish Match North America division announced it had received a subpoena from the District of Columbia’s attorney general, requesting among other things information about the unit’s compliance with local restrictions on flavored tobacco.
A preliminary investigation by the company indicated that there had indeed been sales of flavored nicotine pouch products in the district. According to PMI, these related predominantly to certain online sales platforms and some independent retailers.
Swedish Match is currently conducting a full review of its sales and supply chain arrangement in D.C. and other U.S. localities where flavor bans apply.
Pending the investigation, PMI has suspended all online sales on Zyn.com. Sales on this platform have represented “a very small” percentage of the company’s U.S. Zyn volumes, according to PMI.
In the March quarter, Philip Morris’ shipment volumes of oral smoke-free product volumes surged by 40 percent, mainly driven by Zyn nicotine pouches in the U.S., where shipment volume reached 131.6 million cans.
Zyn has been available in the U.S. since 2014, but its sales have skyrocketed over the past year and a half, and its parent company is investing in Zyn capacity in the U.S.
Philip Morris bought Swedish Match in a $16 billion deal in 2022 as the company looked to reduce its reliance on cigarettes amid stricter regulations and a consumer shift toward alternatives to tobacco and traditional cigarettes.
June 18, 2024
Health Canada Recalls Zyn Pouches

Image: Swedish Match/ HstrongART
Health Canada recalled eight types of Zyn nicotine pouches on June 12, saying they were sold without market authorization, reports Global News.
They affected variants are flavored apple mint, bellini, black cherry, citrus, cool mint, espresso, original and spearmint. The pouches had 1.5 or three milligrams of nicotine in them.
Philip Morris International, which manufactures Zyn products, said it does not sell in Canada and applauds Health Canada for taking action.
“The products at issue are being sold by unauthorized parties,” a spokesperson for PMI’s Rothmans Benson & Hedges affiliate was quoted as saying by the Global News.
“RBH works with law enforcement to stop illicit trade and we are supportive of government efforts on this front.”
Health Canada has approved only one nicotine pouch for sale—Imperial Tobacco Canada’s Zonnic brand.
The introduction of nicotine pouches in Canada has run into opposition from health activists.
Experts say these products are appealing to children, who face the risk of becoming addicted to nicotine.
In March, Health Minister Mark Holland said that he was “seeking authority” to restrict such products “so they are solely for the purposes of cessation.”

June 14, 2024
U.S. States Report Zyn Shortages

TR Archive
Zyn nicotine pouches are out of stock at multiple retailers that ship across the U.S., and some wholesalers are also reporting difficulty getting the product.
Some smoke shops in New York said they are out of the pouches, and wholesalers in New Jersey and Florida said they’ve been hard to get, Bloomberg reported.
The scarcity comes after Philip Morris International reported that U.S. volumes of the nicotine pouches jumped 80 percent in the first quarter.
There’s also a lawsuit about the products’ nicotine content and growing criticism of marketing practices, raising concern that there could be a regulatory crackdown on the popular cigarette alternative.
Zyn is an important source of growth for Philip Morris International as cigarette smoking declines and the vape industry is increasingly dominated by unauthorized products made in China.
In an earnings call last month, Chief Financial Officer Emmanuel Babeau acknowledged Zyn’s growth was straining the supply chain.
In February, PMI reported that it had shipped nearly 385 million cans of the flavored nicotine pouches in the U.S. in 2023, up 62 percent year-over-year.
The firm expects to do even better business in 2024, forecasting U.S. shipments of around 520 million cans this year, its February earnings report said.
May 23, 2024
Retailers Warned Over Underage Zyn Sales

Photo: Swedish Match
The U.S. Food and Drug Administration warned multiple retailers over sales of Zyn nicotine pouches to underage consumers.
In a note posed on its website, the agency said it had issued 119 warning letters to brick-and-mortar retailers and had filed 41 civil money penalty complaints seeking more than $55,000 in total for underage sales of flavored Zyn nicotine pouches, including espressino, black cherry, lemon spritz, and cucumber lime.
“There is no excuse for selling tobacco products to any underage person, and FDA will hold retailers accountable for those violations—especially those who continue to do so after being warned,” said Briang King, director of the FDA’s Center for Tobacco Products.
The FDA generally sends warning letters the first time an investigation or inspection reveals a violation. To achieve voluntary compliance, warning letter recipients have 15 working days to respond with the steps they will take to correct and prevent future violations. However, failure to promptly correct the violations may result in additional FDA action, including civil money penalties.
April 5, 2024