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Tag: Zyn

  • IQOS System Commercially Available in Texas

    IQOS System Commercially Available in Texas

    Today, PMI U.S. announced its FDA-authorized IQOS system is now commercially available to residents in the Greater Austin, Texas, area online at www.IQOS.com/us, at select pop-up stores, and other 21+ venues. IQOS is available in more than 70 markets globally since launching in Japan 10 years ago. The launch in Texas marks the first in a series of introductions in markets across the U.S.

    “We’ve seen the impact that a diverse range of smoke-free alternatives—like IQOS and ZYN—can have in helping adults 21+ move away from cigarettes,” said Stacey Kennedy, PMI U.S. CEO. ”We are committed to raising awareness and educating both consumers and public health leaders about the progress being made in harm reduction with our smoke-free products.”

    The news that Austinite’s can now purchase IQOS onlinefollows the March announcement that a permanent IQOS store opened downtown. Since October 2024, more than 5,000 Austin residents signed up to “Be the First” to experience IQOS.

  • PMI Halts U.S. Cigar Sale

    PMI Halts U.S. Cigar Sale

    Bloomberg reported that yesterday Philip Morris International Inc. called off the sale of its $1 billion US cigar business, citing the “current environment” in the latest deal to go awry amid market turmoil.

    PMI said following a thorough review and after taking into account the current environment, it will not shed the cigar unit it acquired as part of its $16 billion purchase of rival Swedish Match. It has previously said it wanted to dispose of US cigars as it continues to pin its future on a shift toward smoke-free alternatives to traditional tobacco products.

    The company said strong sales of Zyn nicotine pouches — also acquired from Swedish Match — were driving performance as it boosted adjusted earnings per share guidance this year to as much as $7.49, compared with a previous targeted high of $7.17.

    The smoke-free business includes Zyn and IQOS heated tobacco sticks and accounted for 42% of the first-quarter total net revenue. Philip Morris wants to generate more than two-thirds of its sales from alternative products by 2030.

  • Federal Judge Allows Zyn Lawsuit to Progress

    Federal Judge Allows Zyn Lawsuit to Progress

    A federal judge in Florida allowed key claims to move forward in two consumer class action lawsuits against Philip Morris and its subsidiary, Swedish Match, over allegations that their Zyn nicotine pouches cause ongoing health issues and are deceptively marketed, especially to young people.

    In March, U.S. District Judge William P. Dimitrouleas partially granted the defendants’ motion to dismiss, tossing a single claim of fraudulent concealment for lacking sufficient detail and a clear connection between the alleged misrepresentation and the plaintiffs’ injuries. However, the claims were reportedly dismissed without prejudice, giving the plaintiffs an opportunity to amend their complaints. The court upheld the bulk of the plaintiffs’ claims, including those for design defects, failure to warn, and negligence. The judge also rejected Philip Morris’ efforts to dismiss the lawsuits for lack of jurisdiction, finding that the companies’ business activities in Florida, including marketing and selling Zyn, provided sufficient basis for the federal court to hear the case.

    Plaintiffs in the Zyn lawsuits allege Philip Morris and Swedish Match falsely maintain Zyn is a smokeless nicotine replacement therapy from cigarettes or e-cigarettes, despite the nicotine concentration levels in Zyn exceeding the levels found in nicotine replacement therapies. Philip Morris said it is reviewing the ruling and intends to “vigorously defend” itself against the remaining claims.

  • Leaked EU Document Calls for “Substantial” Taxes on Nicotine Pouches

    Leaked EU Document Calls for “Substantial” Taxes on Nicotine Pouches

    According to The Vaping Post, a confidential European Commission (EC) document, leaked by Snusjournalen, has revealed a contentious plan to impose a substantial EU-wide tax increase on nicotine pouches (NPs). Spearheaded by the Directorate-General for Taxation and Customs Union (DG TAXUD), the proposed measure could trigger widespread economic, political, and criminal repercussions across the Union.

    Europe already finds itself in a tenuous economic situation, dealing with economic instability that includes inflation and escalating trade tensions with the United States. Worse on the nicotine front, a recent Europol report shared by Euroreporter, “The Changing DNA of Serious and Organised Crime,” highlights the direct link between excessive taxation and the rise of black markets—specifically citing tobacco and nicotine products. The report warns that strict tax policies create opportunities for criminal networks to expand operations, smuggle products across borders, and launder illicit funds. Experts fear that a steep price increase on NPs could drive a surge in illicit sales, with products being illegally imported from non-EU nations like China.

    Although the European Commission has yet to confirm the directive publicly, the leak has already sparked significant concerns among key stakeholders, including law enforcement, investors, and consumer advocacy groups. Given Europol’s warnings on illicit trade and the broader political and economic climate, this proposed tax increase is shaping up to be one of the most contentious regulatory battles in the coming months.

    “In light of these developments, the proposed tax hike on NPs adds yet another layer of uncertainty to an already volatile regulatory and economic landscape,” wrote The Vaping Post. “More importantly, with the vaping industry currently facing such a critical juncture, which could result in less availability of vaping products to smokers using them to quit, a harsh tax set on snus would be currently all the more detrimental to public health.”

  • PMI Earns Real Estate Award for Colorado Zyn Project

    PMI Earns Real Estate Award for Colorado Zyn Project

    Philip Morris International’s (PMI) purchase and planned development of 150 acres of land in Aurora, Colorado, in July 2024 earned a 2025 CoStar Impact Award, as judged by real estate professionals familiar with the market. According to the seller, Opus Development Co., the site acquisition by PMI’s United States-based affiliate, Kairus, Inc., was one of the largest direct land sales to a user and set a record price per square foot based on land area. PMI plans to invest $600 million into building a manufacturing hub for Zyn nicotine pouches.

    “PMI and its U.S. affiliates are accelerating their mission to move adults who smoke away from cigarettes by investing in new manufacturing capacity to meet the increasing demand for nicotine options that are scientifically substantiated as better alternatives,” PMI Americas President and U.S. CEO Stacey Kennedy said in a statement unveiling the company’s development plans. “We believe Colorado is like-minded 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.”

    The project is expected to generate more than $1 billion in economic contributions for the Denver-area suburb by the time it is fully operational in 2026, and will host at least 500 full-time employees, and generate upward of $550 million annually in economic benefits statewide.

  • PMI Execs Speak at CAGNY

    PMI Execs Speak at CAGNY

    Yesterday, Philip Morris International participated in the Consumer Analyst Group of New York (CAGNY) conference in Orlando, Florida. Chief Executive Officer Jacek Olczak and Chief Financial Officer Emmanuel Babeau spoke about the company’s work toward a smoke-free future, current financial models, and future opportunities.

    (Some quotes were edited for brevity and clarity.) Highlights included:

    Jacek Olczak

    Working toward a smoke-free company

    “We have been quite successful for the first 10 years of the transformations and our quest to become predominantly a smoke-free company. A way to look at what we achieved is [comparing] Marlboro International, which is by far the biggest premium brand in the category. Two years ago in 2023, IQOS for the first time surpassed the revenues of Marlboro and last year exceeded $11 billion. If we take this from that perspective, it took Philip Morris International about 60 or 70 years to get Marlboro to that level, and IQOS, our heat-not-burn brand, has managed to get to that level of performance in roughly 10 years.”

    “What does it mean for us when we set this aspirational target of having two-thirds of our revenue come from smoke-free products by 2030? Obviously, it’s a nice number that looks very nice on a PowerPoint, but the reality is that unless we become a majority smoke-free company, country-by-country, market-by-market, while we operate… the miracle will not happen at the group consolidated level.”

    “There are some countries in the world that despite the science and knowledge and evidence about the new products in terms of the risk profile versus cigarettes, they will not ban cigarettes. But they [essentially] will ban the smoke-free product by allowing cigarettes to continue.”

    ZYN, the company’s acclaimed oral nicotine pouch

    “ZYN in the U.S. is essentially approaching $2 billion in revenues. However, it’s especially exciting for us that ZYN today is the No. 4 nicotine brand as of last quarter, and definitely is the No. 1 smoke-free brand on the U.S. market.”

    Nicotine and the FDA

    “The FDA and others should finally start clarifying what is nicotine. Maybe we don’t wait for FDA clarification. This is what we say about nicotine, and I am not saying what we know, we are just repeating what is known to the public health organizations including the FDA and many other reputable institutions: Nicotine is addictive and, obviously, is not risk-free, but it’s not the primary cause of smoking-related diseases.”

    “Everything else that you find in tobacco smoke is bad, but it’s not the nicotine. Now historically, because we only knew that nicotine can be consumed from cigarettes, nobody had to pay attention to the details or accuracy of the language and whether you call it nicotine or cigarette or smoking, there was not much difference. But over the last 10 years, this has become the fundamental difference.”

    “The most important thing, and I will be repeating this until we succeed, nicotine doesn’t cause cancer. And this is not PMI research. This is research that was done over the last 60 or 70 years when any public authority in the world was looking into cigarettes and the harm caused by cigarettes. And nobody has come up with any conclusion even close that nicotine causes harm and definitively not causes cancer. So that’s the starting point and the industry, and definitely PMI, is going in that direction.”

    “[Nicotine products] have no reason to be given to kids. So we, and Swedish Match, stand very strongly behind responsible sales practices, which go into the product design flavors, et cetera.”

    Future of the industry

    “I think the future will be more complicated, but it will actually create more opportunities. The smokers will not go away. They’re actually looking at these products from the repertoire perspective, because all of these products deliver a different opportunity.”

    “I think the best strategy one can have is to actually keep on with the pace of developing these products and offering them to the consumers without spending too much time [wondering which] one category will win one versus the others.”

    Emmanuel Babeau

    Revenue growth

    “Let me start with a summary of our best-in-class growth and return. The first element is we are a strong growth company in terms of top-line with three drivers. The first one we talk about is growing volumes. If we achieve our objective of growing volume again in 2025, it will be five years in a row of growth in volume. It’s a total change of paradigm for the nicotine industry. Second is price increase, and you have seen over the last two years we’ve been growing and increasing our prices. First on combustible of course, but also on the smoke-free portfolio where we have started to post some nice price increases. Third is the very positive mixed impact that is coming from the growth of our smoke-free portfolio.”

    “What I think is super important is the mix impact and understanding of why the growth on smoke-free products is a very positive element for our growth, both at the top-line level and at the margin progression as well.”

    “Today we are spending a lot of time on AI and what AI can mean for us in terms of notably saving on our back-office cost. We believe that AI is pervasive to the organization. To be clear, AI will have a lot of impact in the way we connect with the consumer and in the way we develop our marketing activity. It’s also going to have a very positive impact on cost, in terms of standardization, in terms of automatization, and we’re going to leverage that.”

    Smoke-free products

    “Look at IQOS versus combustible cigarettes. IQOS reaches $80 per thousand in revenue, which is around 2.2 times higher than the average of our combustible portfolio. Therefore, when we grow IQOS, not only do we come with volume growth, but we accelerate the revenue growth with this positive mix effect on revenue. The level of gross profit is $54 per thousand. This is around 2.4 times higher than a combustible cigarette.”

    “Maybe the most spectacular impact in terms of positive contribution is the U.S. ZYN number. The revenue per thousand is about 6 times the average of our cigarette business. And at this level, the gross profit is $185, which is about 8 times the profit that we make on average for our combustible business.”

    “So obviously, when we grow IQOS and ZYN, we are growing very nicely in volume, remember close to 14% growth in volume for our smoke-free portfolio in 2024.”

    For more than 50 years, CAGNY has been connecting investors, management teams, and the media dedicated to the consumer industry. It asserts to be “the largest not-for-profit of its kind” and hosts various events throughout the year, highlighted by the CAGNY conference in Boca Raton, Florida.

  • N.Y. Lawmakers Want to Ban Zyn for its Flavors

    N.Y. Lawmakers Want to Ban Zyn for its Flavors

    New York lawmakers have introduced a bill in the legislature that would ban flavored oral nicotine pouches such as Zyn, which recently received FDA approval. The pouches do not contain tobacco and are the fastest-growing product on the U.S. tobacco market, but lawmakers are comparing their flavors to flavored vape cartridges that were banned in the state in 2020 because they are attractive to children.

    “You always have to keep on top of this industry,” said Assemblywoman Linda Rosenthal, who is sponsoring the bill. “Because as we extinguish some of the availability to youth in particular, the industry comes up with more ways to entice people to be addicted to nicotine and their products.”

    The legislation — which is sponsored in the Senate by state Sen. Brad Hoylman-Sigal — asserts that minors could turn to nicotine pouches as flavored vapes become harder to find under New York’s ban.

    Zyn is manufactured by Swedish Match, a subsidiary of Philip Morris International, which maintains that Zyn is intended and marketed only for those 21 and older, and that the vast majority of Zyn’s clientele are not new nicotine users, but adults switching to a safer delivery method.

    “Almost everyone has come from another product,” Brian Erkkila, Swedish Match’s director of regulatory science, said. “That’s who the product is designed for. If you think about the flavors our product comes in, they come in flavors that have been in smokeless tobacco products like moist snuff and dip, for decades. These aren’t new flavors. They’ve been around for a long time.”

    Alan Mathios, a professor at Cornell University who studies the economics of tobacco regulation, called the potential ban shortsighted and said it could lead to the proliferation of illicit products, make the market more difficult to regulate, and have the opposite result in terms of keeping them away from underage users.

    “A lot of menthol smokers really like their menthol,” Mathios said. “If they don’t have an alternative menthol product, they’re unlikely to move away from cigarettes. So even if you do see some youth movement into menthol-flavored pouches, you have to weigh that against the role that menthol-flavored products play in helping adults switch.”

  • FDA Authorizes 20 ZYN Pouch Products

    FDA Authorizes 20 ZYN Pouch Products

    Today, the U.S. Food and Drug Administration (FDA) authorized the marketing of 20 ZYN nicotine pouch products through the premarket tobacco product application (PMTA) pathway following an extensive scientific review. This is the first time the agency has authorized products commonly referred to as nicotine pouches, which are small synthetic fiber pouches containing nicotine designed to be placed between a person’s gum and lip. 

    The FDA determined that the specific products receiving marketing authorization met the public health standard legally required by the 2009 Family Smoking Prevention and Tobacco Control Act. This standard considers the risks and benefits of products to the population as a whole.

    “As a public health scientist and former Director of the Office of Science at FDA’s Center for Tobacco Products, I couldn’t be more excited for public health with FDA’s decision today,” Matt Holman, vice president of U.S. Scientific Engagement and Regulatory Strategy at PMI said on X. “Authorizing products that can help the nearly 30 million smokers in the United States switch to a better form of nicotine has the potential to save countless lives.”

    Among several key considerations, the agency’s evaluation showed that, due to substantially lower amounts of harmful constituents than cigarettes and most smokeless tobacco products, such as moist snuff and snus, the authorized products pose a lower risk of cancer and other serious health conditions than such products. The applicant also provided evidence from a study showing that a substantial proportion of adults who use cigarette and/or smokeless tobacco products completely switched to the newly authorized nicotine pouch products.

    “To receive marketing authorizations, the FDA must have sufficient evidence that the new products offer greater benefits to population health than risks,” said Matthew Farrelly, Ph.D., director of the Office of Science in the FDA’s Center for Tobacco Products. “In this case, the data show that these nicotine pouch products meet that bar by benefiting adults who use cigarettes and/or smokeless tobacco products and completely switch to these products.”

    Additionally, the FDA found that the applicant showed these nicotine pouch products have the potential to provide a benefit to adults who smoke cigarettes and/or use other smokeless tobacco products that is sufficient to outweigh the risks of the products, including to youth. As part of its evaluation, the FDA reviewed data regarding youth risk and found that youth use of nicotine pouches remains low despite growing sales in recent years. For example, the 2024 National Youth Tobacco Survey showed that 1.8% of U.S. middle and high school students reported currently using nicotine pouches.

    “It’s critical that the manufacturer market these products responsibly to prevent youth use,” said Brian King, Ph.D., M.P.H., director of the FDA’s Center for Tobacco Products. “While current data show that youth use remains low, the FDA is closely monitoring the marketplace and is committed to taking action, as appropriate, to best protect public health.”

    While today’s actions permit these specific tobacco products to be legally marketed in the U.S. to adults 21 and older, it does not mean these tobacco products are safe, nor are they “FDA approved.” There is no safe tobacco product; youth should not use tobacco products and adults who do not use tobacco products should not start. 

    The FDA will closely monitor the marketing and use of these products. To reduce the potential for youth exposure to advertising of these products, the authorizations impose stringent marketing restrictions for digital, television, and radio, including measures to ensure ads are carefully targeted to adults ages 21 and older and the demographics of the audiences reached by the ads are tracked and measured by the manufacturer. The company also stated that they intend to implement additional measures to restrict youth access, reduce youth appeal, and limit youth exposure to their labeling and advertising, such as: not using mass-market advertising on radio and TV; employing actors/models for marketing that are no younger than 35 years old, or styled to appear under 35; and avoiding any content designed to target youth, including characters, images or themes. The agency may suspend or withdraw a marketing granted order issued under the PMTA pathway for a variety of reasons if the agency determines the continued marketing of a product no longer meets the necessary public health standard, such as if there is a notable increase in youth initiation.

    The products for which the FDA issued marketing granted orders are the following, each with two nicotine strengths (3 milligrams and 6 milligrams): ZYN Chill, ZYN Cinnamon, ZYN Citrus, ZYN Coffee, ZYN Cool Mint, ZYN Menthol, ZYN Peppermint, ZYN Smooth, ZYN Spearmint and ZYN Wintergreen. Importantly, today’s actions are specific to these products only; the authorizations do not apply to any other nicotine pouch or other ZYN products. Additionally, the authorization does not allow the company to make reduced-risk claims about the authorized products, which would require a modified-risk tobacco product application.

    Today’s actions are the latest of many the FDA has taken to ensure all new tobacco products marketed in the U.S. undergo science-based review and have received marketing authorizations by the agency. To date, the FDA has received applications for nearly 27 million products and has made determinations on more than 26 million of those applications. This includes authorization of other flavored oral tobacco products, including nicotine mints and chews in 2021 and mint smokeless tobacco in 2015. To find a list of tobacco products that may be legally marketed and sold in the U.S., visit the FDA’s Searchable Tobacco Products Database.

  • PMI Settles D.C. Flavor Ban Violations Case

    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.

    .

  • Zyn Sued for Overcharging

    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.