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Tag: Zyn

  • PMI to Double Zyn Investment in Ukraine

    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.

  • FDA’s Pouch Fast-Track Scheme Stalling Over Youth Worries

    FDA’s Pouch Fast-Track Scheme Stalling Over Youth Worries

    A fast-track review program at the U.S. Food and Drug Administration aimed at accelerating authorizations for nicotine pouch products has stalled, as agency scientists weigh concerns about youth uptake and risks to non-users against potential harm-reduction benefits for smokers, according to sources cited by Reuters. Reuters said applications tied to pouch brands from Philip Morris International (Zyn) and British American Tobacco (Velo) remain under review despite expectations that decisions would be made by the end of 2025 under the pilot scheme. The FDA has already authorized six products under Altria Group’s on! brand, but reviewers are said to be taking a more cautious stance on other applications where evidence of net public-health benefit is viewed as less clear-cut.

    While FDA data shows pouch use among middle- and high-school students remains relatively low, it has been rising, prompting heightened scrutiny. Tobacco companies argue the pilot program is critical for restoring legal market competition amid a surge of unregulated products, while public-health advocates warn that rapid authorizations could fuel new addiction trends. The FDA said decisions continue to be guided by science and statutory standards rather than external pressure.

  • Health Groups Call for F1 to Cut Ties with Pouch Sponsors

    Health Groups Call for F1 to Cut Ties with Pouch Sponsors

    Campaign for Tobacco Free Kids said that 160 public health and advocacy groups from 57 countries have urged Formula One to extend its ban on tobacco sponsorships to include nicotine pouches, warning that current team partnerships with Philip Morris International and British American Tobacco, promoting Zyn and Velo through Ferrari and McLaren, make branding visible to millions of young fans. In a letter to F1 CEO Stefano Domenicali, the groups said the sponsorships undermine the sport’s youth-focused expansion efforts and expose minors to addictive nicotine products, citing data that a significant share of F1’s social media audience is under 25. Separate letters were also sent to The Walt Disney Company, The Lego Group, and Mattel, calling on them to support a comprehensive prohibition on all tobacco-related sponsorships in the sport.

  • PMI Ramps Up Zyn Production in New Colorado Plant

    PMI Ramps Up Zyn Production in New Colorado Plant

    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.

  • Nicotine Pouch Growth Drives Haypp’s 5% Sales Increase

    Nicotine Pouch Growth Drives Haypp’s 5% Sales Increase

    Haypp Group reported strong global growth in nicotine pouches (NPs), with Q4 2025 volume up 28%, driven by the U.S. reintroduction of Zyn in September 2025 and accelerating growth in the UK. NPs now account for 67% of total volume, with FY25 volume up 13% year-over-year. U.S. consumer offtake rose approximately 35% in Q4 2025 and January 2026 volumes jumped 120% year-over-year, with new customer acquisition up over 250%. The company cited improved retention through localized teams, research, and consumer-focused initiatives, achieving an all-time high Net Promoter Score of 82. In the UK, Q4 2025 volume rose 73% and new customer growth reached 112%, accelerating to ~200% and ~125%, respectively, in January.

    Looking ahead, Haypp anticipates regulatory changes in Austria will force an exit by mid-2026, though this market represents less than 1% of total sales. The company strengthened its U.S. infrastructure, increasing overhead by 29% to support Media and Insights and online growth initiatives. Leverage stood at 0.6x net debt/adjusted EBITDA at year-end, with inventory tactically increased ahead of January 2026 price hikes. Haypp’s Board reaffirmed 2028 targets: 18–25% annual revenue growth, an adjusted EBIT margin of 5.5% ±150 bps, and reinvestment of cash flows to support ongoing expansion in its core U.S. and UK markets while maintaining compliance as a competitive advantage.

  • PMI’s Colorado Zyn Factory Producing During Construction

    PMI’s Colorado Zyn Factory Producing During Construction

    Philip Morris International gave the media a look inside its $600 million Zyn nicotine pouch manufacturing plant in Aurora, Colorado, this week. The 150-acre facility, which began construction in late 2024 and is part of PMI’s U.S. smoke-free product expansion, is expected to create 500 jobs when fully operational in 2026. Despite ongoing infrastructure work and significant portions of the main building still under construction, the plant produced its first Zyn products in September 2025, which have already reached the market.

  • Anti-Tobacco Group Alarmed that PMI, BAT Spending $40M on F1 Sponsorships

    Anti-Tobacco Group Alarmed that PMI, BAT Spending $40M on F1 Sponsorships

    Anti-tobacco advocacy group STOP (Stopping Tobacco Organizations and Products) is increasing scrutiny of nicotine brand marketing in Formula 1, arguing that partnerships between teams and companies linked to tobacco firms risk exposing younger audiences to nicotine products. The watchdog group claims the growing presence of products such as nicotine pouches and other smoke-free alternatives in motorsport sponsorship represents a regulatory gap that allows continued brand visibility despite historic restrictions on tobacco advertising.

    STOP highlighted recent sponsorship activity believed to be a combined $40 million by Philip Morris’ Zyn nicotine pouch products on Ferrari race teams and BAT’s Velo brand appearing in F1 team partnerships. Jorge Alday, director of STOP at Vital Strategies, said the organization is concerned given Formula 1’s expanding and increasingly youthful global fanbase. The group is urging regulators and sports governing bodies to consider tighter oversight of nicotine product marketing in international sporting events, while industry stakeholders maintain that such products fall within existing legal frameworks governing reduced-risk or non-combustible nicotine alternatives.

  • PMI Reports $40B in Revenue, Including 42% from Smoke-Free Products

    PMI Reports $40B in Revenue, Including 42% from Smoke-Free Products

    Philip Morris International reported strong 2025 fourth-quarter and full-year results, driven largely by the continued expansion of its smoke-free product portfolio. The company recorded more than $40 billion in annual net revenues, including nearly $17 billion from smoke-free products, which accounted for 41.5% of total net revenues. Smoke-free shipment volumes rose 12.8% for the year, with PMI’s products now available in 106 markets and used by an estimated 43 million adult consumers. IQOS maintained a dominant position in heat-not-burn, holding about 76% global category share, while nicotine pouch brand Zyn continued rapid growth, particularly in the U.S., where shipment volumes reached 794 million cans for the year.

    PMI’s combustible business remained stable despite expected volume declines, supported by pricing strength and productivity improvements. Marlboro reached a record 11% global category share, while total company shipment volumes remained flat as growth in smoke-free products offset cigarette declines. The company also reported strong performance across multiple regions, including double-digit heated tobacco growth in Europe and sustained category leadership in Japan, where heat-not-burn products now exceed 50% of total nicotine offtake in several major markets.

    Looking ahead, PMI expects continued momentum, forecasting 2026 adjusted diluted EPS growth of 7.5% to 9.5% excluding currency effects. The company also introduced 2026–2028 targets calling for 6% to 8% organic net revenue growth and 9% to 11% adjusted EPS growth, driven primarily by high single-digit to low-teens expansion in smoke-free product volumes.

    In response to the financials, Morgan Stanley said it expects a modest negative market reaction to PMI’s fourth-quarter results and forward guidance, which were largely in line with expectations following the stock’s strong rally since December.

    “On balance, 4Q results were broadly in line, and guidance looks reasonable, but is unlikely to settle the debate around the stock,” Morgan Stanley wrote. “Bears continue to point to a 2H-weighted year with headwinds from IQOS competition and excise tax increases in Japan, the flavor ban in Poland, and continued competition in U.S. nicotine pouches. Bulls point to PM delivering the best mid-term growth in large-cap CPG despite these known headwinds. We are [rating the stock] Overweight, and continue to expect growth to reaccelerate in 2H as these headwinds dissipate, and for US Zyn trends to improve with the likely FDA authorization of Zyn Ultra.”

  • Swedish Match Closing Richmond Office

    Swedish Match Closing Richmond Office

    According to a letter to the Commonwealth of Virginia, Swedish Match will be closing its Richmond office April 17, offering the majority of employees the opportunity to relocate to a location aligned with their role and function. Virginia Business magazine reported yesterday (Feb. 2) that Thomas G. Hayes, president of Swedish Match North America, sent a letter last week notifying Virginia Works of the imminent closure as part of a larger restructuring by its parent company, Philip Morris International. 

    In November 2025, PMI announced plans to restructure in 2026, dividing into two main business units, PMI International and PMI U.S.—along with Aspeya, its wellness business—as it continues to expand its smoke-free portfolio. In a statement, PMI said the Richmond closing is related to changes in its U.S. geographical footprint.

     “This decision was not made lightly, and we recognize the impact it will have on our employees and the local community,” the company said. “Centralizing key capabilities and functions in strategic location hubs will help us operate with greater speed, agility, and consumer focus—driving momentum behind our category-redefining brands, ZYN and IQOS as we work to accomplish a smoke-free America.”

    Headquartered in Stockholm, Swedish Match AB employs about 1,300 people in the United States. “According to Hayes’ letter, employees of PMI subsidiaries and affiliates Triaga Retail, PMI Global Services Unit, Swedish Match Cigars, Swedish Match North America, and Pinkerton Tobacco Co. are impacted,” Virginia Business reported.

  • FDA Posts New Materials in Zyn MRTP Applications

    FDA Posts New Materials in Zyn MRTP Applications

    The FDA posted new materials today (Feb. 2) related to the modified risk tobacco product (MRTP) applications submitted by Swedish Match USA, Inc. for 20 Zyn nicotine pouch products. The documents are available on the Swedish Match USA, Inc. MRTP application webpage. This is the final set of application materials.

    Accordingly, FDA is establishing the closing date for the public comment period on these MRTP applications. Public comments must be submitted to Docket Number FDA-2025-N-0835-0001 by 11:59 p.m. ET on March 4 to be considered. 

    Read the application materials here.