September 2026: PMI U.S. Boosts ZYN Can Size to 20 Pouches in Major Portfolio Expansion
Philip Morris International’s U.S. division is increasing the pouch count in its core ZYN lineup, transitioning its flagship 3 mg and 6 mg dry pouch cans from 15 to 20 pouches per unit. Scheduled for rollout in the fourth quarter, the package change reflects consumer research indicating a strong preference for the larger format among legal-age nicotine users.
The move comes alongside a broader expansion designed to offer a wider variety of nicotine strengths, moisture levels, and formats to adult consumers transitioning away from combustible cigarettes. In addition to the size shift for its core products, PMI U.S. is broadening its dry pouch portfolio to include new 1.5 mg and 8 mg strength options. The company is also rolling out ZYN ULTRA, a higher-moisture, slim pouch line. The launch follows the U.S. Food and Drug Administration’s (FDA) issuance of marketing granted orders in August 2026 for 11 ZYN ULTRA products across 9 mg and 11 mg nicotine strengths.
Flavor options are expanding alongside the updates to strength and moisture levels. The flagship ZYN dry pouch portfolio now features 13 distinct flavor variants, ranging from traditional mints and fruit options to unflavored selections. Meanwhile, the new moist ZYN ULTRA lineup is available in 10 flavor variants.
| ZYN dry variants: 1.5 mg, 3 mg, 6 mg, and 8 mg | ZYN ULTRA: 9 mg, 11 mg |
|---|---|
| ZYN Smooth (unflavored) | ZYN ULTRA Signature Smooth (*) |
| ZYN Chill (unflavored) | ZYN ULTRA Chill Mist (*) |
| ZYN Cool Mint | ZYN ULTRA Arctic Mint (*) |
| ZYN Spearmint | ZYN ULTRA Fresh Spearmint (*) |
| ZYN Wintergreen | ZYN ULTRA Wintergreen Blast (*) |
| ZYN Peppermint | ZYN ULTRA Peppermint Frost (*) |
| ZYN Citrus | ZYN ULTRA Citrus Zest (*) |
| ZYN Menthol | ZYN ULTRA Menthol Ice (*) |
| ZYN Black Cherry | ZYN ULTRA Deep Freeze |
| ZYN Peach | ZYN ULTRA Wintergreen Chill |
| ZYN Coffee | |
| ZYN Cinnamon | |
| ZYN Dragonberry |
The commercial expansion relies on recent regulatory milestones. ZYN became the first nicotine pouch authorized for U.S. sale by the FDA in January 2025. In June 2026, the FDA granted modified risk tobacco product (MRTP) orders for 20 ZYN products, making it the only pouch line authorized to communicate specific reduced-risk claims regarding oral cancer, heart disease, and respiratory illness relative to cigarettes. Supply for the expanding brand will be supported by PMI U.S.’s newly opened 780,000-square-foot manufacturing campus in Aurora, Colorado, which began commercial production in July 2026 to supplement the company’s existing operations in Owensboro, Kentucky.
September 2026: ZYN Rolls Out “When It Clicks” Campaign
Philip Morris International’s U.S. division has launched “When It Clicks,” a nationwide brand platform for its ZYN nicotine pouch line designed to connect with adult consumers seeking to stay focused and present in fast-paced daily environments. Following a soft launch over the summer, the campaign will reach full national scale across digital platforms, out-of-home advertising, and live events in the fourth quarter of 2026. The creative content centers on the recognizable sound of the ZYN container lid clicking shut, using it as a sensory cue for momentum, clarity, and personal alignment.
The campaign broadens ZYN’s appeal across varied adult lifestyles, framing the smoke-free product around key moments of alignment and daily achievement – from business milestones to outdoor pursuits. Rather than centering on traditional outdoor smoke breaks, “When It Clicks” highlights how discreet nicotine pouches integrate seamlessly into active, modern routines without interrupting momentum.
According to PMI U.S., the platform taps into the desire of busy adults to stay immersed in key moments rather than missing what is happening around them. Alongside its core media rollout, the initiative features visual branding using brackets to highlight productivity milestones, as well as a series of collectible metal accessory cases designed in collaboration with American artists. Together, these elements position ZYN not just as a tobacco alternative, but as an unobtrusive lifestyle and focus aid for the modern workforce.
July 2026: Philip Morris International Fires Back in U.S. Nicotine Pouch War with ZYN ULTRA, New Strengths, and Aggressive Commercial Push
Philip Morris International (PMI) is mounting a major strategic offensive to defend and revitalize its flagship nicotine pouch brand in the United States. Facing intense competitive pressure that has eroded its market dominance over the last two years, PMI has rolled out a suite of strategic moves, including new high-strength moist offerings, brand extensions, stepped-up commercial investments, and a landmark regulatory claim.
Market Dynamics: Reclaiming the Crown
For years, ZYN has been the undisputed category-builder and standard-bearer in the U.S. oral nicotine market – becoming virtually synonymous with nicotine pouches. In 2024, the brand commanded an impressive 75% retail share. However, over the past two years, the landscape shifted dramatically. Competitors, such as British American Tobacco’s VELO Plus and TPB’s FRE/ALP, flooded the market with slim, moist pouches carrying higher nicotine concentrations (9mg and 12mg). This targeted influx squeezed ZYN’s traditional dry portfolio, eroding its retail share to 57%. PMI’s latest commercial moves are a direct, multi-pronged counter-offensive aimed at re-energizing the ZYN brand and reclaiming lost territory.
Portfolio Expansion: Addressing Consumer Preferences
To address evolving consumer preferences and close competitive gaps, PMI began expanding the ZYN portfolio in June 2026 with initial shipments of ZYN ULTRA. Offered in 9mg and 11mg moist, slim format at a lower price-per-pouch than the flagship ZYN dry lineup, ZYN ULTRA narrows the price premium relative to key competitors while preserving the brand’s premium standing. Alongside ZYN ULTRA, PMI added Peach, Black Cherry, and Dragonberry to its core ZYN dry lineup, with plans to introduce 1.5mg and 8mg ZYN dry variants in the third quarter of 2026. The 1.5mg option is specifically engineered to offer a smooth, non-overwhelming entry point for adult consumers transitioning to nicotine pouches.
Accelerating U.S. Investments & “When It Clicks”
To support these product launches and maximize ZYN’s long-term brand equity, PMI is accelerating its U.S. commercial investments across the second half of 2026. This comprehensive commercial push spans marketing, expanded distribution, and enhanced in-store execution, anchored by the rollout of a major new brand campaign, “When it Clicks,” starting this month to boost brand engagement and consumer relevance.
The Regulatory Moat: FDA MRTP Authorization
Underpinning this entire commercial push is a distinct regulatory advantage: ZYN remains the only nicotine pouch product with Modified Risk Tobacco Product (MRTP) authorization from the U.S. FDA across 20 SKUs. This designation permits PMI to explicitly market the claim that using ZYN instead of cigarettes puts consumers at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis, reinforcing consumer trust and cementing ZYN’s sustainable positioning in the evolving U.S. market.
By combining scientific differentiation, an expanded range of strengths and formats, and an aggressive commercial push, PMI is positioning ZYN not just to hold its ground, but to define the next phase of growth in the U.S. smoke-free market.
June 2026: PMI U.S. Launches Limited-Edition America250 ZYN Storage Can
As part of its nationwide America250 campaign celebrating the 250th anniversary of the United States, Philip Morris International (PMI) U.S. has introduced a limited-edition patriotic ZYN storage can featuring a stars-and-stripes-inspired design. The collectible metal can became available through the ZYN Rewards store on June 1, 2026, and is intended to commemorate the nation’s milestone anniversary while promoting the ZYN brand among adult nicotine consumers. The launch forms part of a broader America250 initiative that also includes community investments, innovation-focused events, and special-edition IQOS products.
The America250 ZYN storage can is one of several commemorative items being released by PMI U.S. throughout 2026 as the company highlights American innovation, manufacturing, and the continued expansion of its smoke-free product portfolio.
June 2026: PMI Confirms U.S. Launch of ZYN ULTRA as It Responds to Growing Competition in Oral Nicotine
Philip Morris International (PMI) has confirmed the U.S. launch of ZYN ULTRA in June 2026, marking the latest expansion of the ZYN nicotine pouch portfolio. The new product will be available in 9mg and 11mg nicotine strengths and will feature a slim, moist pouch format, in contrast to the flagship ZYN range’s mini, dry pouch format.
ZYN ULTRA will be sold in a 20-pouch can, compared with the standard 15-pouch format used across most of the flagship ZYN portfolio. PMI also stated that ZYN ULTRA will be positioned at a lower price-per-pouch than the core ZYN range, representing an important step in optimizing ZYN’s price premium within the rapidly evolving U.S. nicotine pouch category.
The launch appears to be a direct response to ZYN’s recent category share losses, particularly to VELO Plus, which has gained traction through its moist pouch format, larger pouch count, and more competitive pricing. To a lesser extent, emerging brands such as FRE and ALP have also contributed to increased competitive pressure in the category. By introducing a moist pouch product with a larger can count and more accessible pricing, PMI is seeking to compete more effectively in the fastest-growing segment of the nicotine pouch market while broadening ZYN’s appeal beyond its traditional dry pouch consumer base. PMI indicated that additional ZYN portfolio extensions are planned for the remainder of 2026.
April 2025: Quarterly ZYN Shipments Surpass 200 million Cans
ZYN demand in the U.S. remains strong and sales volume is still constrained by the production capacity. Despite the ZYN production capacity increase earlier than expected and partial pull-forward of distributor replenishment at the end of March 2025, the flow-through to the retail stores remains very limited. ZYN-owner, Philip Morris International (PMI) shipped 202 million cans of ZYN to the U.S. distributors in Q1 2025 and targets full ZYN supply normalization only in Q3 2025.
According to the Nielsen retail scan data (based on a small sample of stores), ZYN’s sales volume grew by around +15% year-on-year basis and volume share declined by 1.5pp sequentially (quarter-on-quarter basis) to 61.5% amid heavy price discounting by the competition. ZYN’s category value share (based on US$ spent) remains strong at 70.5%. Based on the Management Science Associates (MSA) data, which measures shipments from distributors to retail, ZYN’s volume share recovered to 65.6% in March 2025.
With nicotine pouch category sales volume growing at around +30% to 35% despite the ZYN supply shortage, PMI expects ZYN sales to gradually accelerate in the coming months as the in-store availability improves and commercial initiatives are reactivated. With strong latent demand and capacity expansion ahead of target, PMI raised ZYN shipment forecast from 780-820 million cans (midpoint: 800 million cans) to 800-840 million cans (midpoint: 820 million cans) for 2025. At US$5.5 average retail price, ZYN sales will reach $4.5 billion and the overall nicotine pouch category sales will surpass the $6 billion threshold in the U.S. in 2025.
February 2025: A New York State Lawmaker Introduces a Bill to Ban Flavored ZYNs
A Senate Democrat proposed a ban on the sale of flavored nicotine pouches in the New York State. In parellel, a Democratic Assemblywoman introduced a companion bill in the state legislature’s lower chamber to ban all nicotine pouches. These proposals came a month after the U.S. FDA authorized the marketing of 20 ZYN nicotine pouch products – 18 of which are flavored – following an extensive scientific review. This authorization implies that the Agency found the marketing of these ZYN nicotine pouches appropriate for the public health.
The Senator stated that “nicotine in any form and in any product is a highly addictive substance” and “the legislation would align New York values in prohibiting enticing flavors for all nicotine products”. New York has already banned flavored e-cigarettes, although the law is poorly enforced.
January 2025: FDA Authorizes Marketing of 20 ZYN Nicotine Pouch Products
The US 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 nicotine pouch authorization by the US FDA.
The FDA issued marketing orders to all 10 ZYN flavors, each in two nicotine strengths (3 milligram and 6 milligram): ZYN Chill, ZYN Cinnamon, ZYN Citrus, ZYN Coffee, ZYN Cool Mint, ZYN Menthol, ZYN Peppermint, ZYN Smooth, ZYN Spearmint and ZYN Wintergreen.
Rationale for the authorization: Due to substantially lower amounts of harmful constituents than cigarettes and most smokeless tobacco products (such as moist snuff and snus), ZYN pouches pose lower risk of cancer and other serious health conditions than such products. There is evidence that a substantial proportion of adults who use cigarette and/or smokeless tobacco products completely switch to ZYN pouches. Youth use of nicotine pouches remains low despite growing sales in recent years (i.e. 1.8% of the US middle & high school students reporting current use according to the 2024 National Youth Tobacco Survey). Thus, ZYN pouches have the potential to provide benefit to adults, who smoke cigarettes and/or use other smokeless tobacco products, that is sufficient to outweigh the product risks, including the youth use (i.e. initiation of nicotine use).
November 2024: Tucker Carlson Partners with Turning Point Brands to Launch ALP Nicotine Pouches
Tucker Carlson announced the launch of ALP nicotine pouches made by and for “adults who unapologetically love nicotine”. ALP will be sold, marketed and distributed through ALP Supply Co LLC, a newly formed 50/50 joint venture between the Tucker Carlson Network and Turning Point Brands. ALP nicotine pouches will be available in three nicotine strengths (3mg, 6mg, and 9mg) and four flavors (Chilled Mint, Mountain Wintergreen, Refreshing Chill and Tropical Fruit).
Carlson claims that as a satisfyingly moist product, ALP is a far better alternative to “dry as a teabag” ZYN. 5-can of 20 ALP pouches are sold for US$24.95 (i.e. US$4.99 a can) on the brand website: www.alppouch.com.
September 2024: Tucker Carlson to Launch a New Nicotine Pouch Brand to Compete with ZYN
The most influential zynthusiast, conservative political commentator, Tucker Carlson (jokingly called Tucker Carl-Zyn) decided to launch ALP nicotine pouches because of ZYN-owner Philip Morris International (PMI)’s irritating response about his “male enhancer” remark about ZYN. However, it is speculated that the underlying reason for the fallout is Carlon’s request to form a partnership with ZYN being rejected by PMI.
A longtime connoisseur of the lower decky Zynachino, Carlson plans to introduce a competing nicotine-pouch brand called ALP in November 2024. Carlson characterizes ZYN as a brand for women and liberals (i.e. not fit for conservative men). He pointed to donations made to Democratic presidential candidate Kamala Harris by employees of PMI as evidence that the company is out of touch with ZYN’s conservative users. However, the analysis of the publicly available donation data reveals that Carlson’s claims are mostly misleading1, presumably made to hype his new nicotine brand.
The ALP pouch website is currently live and customers can sign up for a waitlist: https://alppouch.com. Carlson’s ALP brand will come in three nicotine strengths (3mg, 6mg, 9mg) and four flavors (including chilled mint and mountain wintergreen). ALP cans will contain 20 moist pouches in comparison to ZYN cans with 15 dry pouches. Recall that moisture facilitates faster nicotine delivery, but results in a shorter experience duration.
Considering the extended duration of the PMTA process, it is unlikely that ALP has received clearance (“marketing order”) from the US FDA. Thereby, our take-away is that another celebrity-endorsed illegal nicotine pouch brand – a politically charged one this time – is hitting the shelves in the lucrative, fast-growing US market soon.
August 2024: PMI Injects $232M into Kentucky ZYN Plant to Drive 24/7 Operations and Boost Capacity
Continuing its aggressive strategy to resolve nationwide product shortages, Philip Morris International (PMI) has announced a $232 million investment to expand its Swedish Match nicotine pouch manufacturing facility in Owensboro, Kentucky.
Construction is already underway to add new production space, with incremental capacity gains expected throughout the project and full completion targeted for the second quarter of 2025. The expansion will create 450 direct jobs – a c.40% workforce increase over the facility’s current c.1,100 employees- alongside 410 indirect jobs for the commonwealth. To deliver immediate output gains, the Owensboro plant will transition from a 24-hour, five-days-per-week schedule to a continuous 24/7 operation starting in Q4 2024. Driven by physical expansion, schedule optimization, and ongoing process improvements, the Kentucky plant is expected to reach a total capacity of approximately 900 million ZYN cans for 2025.
This investment comes on the heels of PMI’s recent $600 million commitment to build a brand-new production facility in Aurora, Colorado. Combined, the Colorado construction and Owensboro expansion are designed to secure the total supply chain capacity required to meet ZYN’s current growth trajectory in the US over the near and mid-term.
July 2024: PMI Reaffirms Strict Youth Access Controls for ZYN Amid Escalating Scrutiny
Alongside its announcement of a $600 million manufacturing expansion in Aurora, Colorado, Philip Morris International (PMI) has publicly reaffirmed its commitment to ensuring ZYN nicotine pouches are restricted strictly to adult consumers aged 21 and older. The pledge comes as PMI faces mounting societal, political, and regulatory scrutiny over youth access to oral nicotine pouches, with the ZYN brand positioned at the center of the debate.
To address these concerns, PMI highlighted its self-imposed US marketing guardrails, which explicitly ban the use of social media influencers and prohibit featuring anyone under the age of 35 in promotional materials. The company also utilizes independent age-verification systems, such as “Double Verify,” to direct its digital advertising solely to consumers over 21, while securing its owned digital platforms behind strict entry age-gates accessible only to verified current adult nicotine users.
Furthermore, PMI detailed proactive steps taken by its US affiliate, Swedish Match North America (SMNA), to combat youth access at physical retail counters. SMNA is an active member of “We Card,” a national nonprofit dedicated to educating retailers on age-restricted sales, and is a founding board member and investor in TruAge – a free point-of-sale technology that provides retailers with advanced age verification and fake ID detection capabilities.
July 2024: PMI Pledges $600M for New Colorado Factory to Resolve ZYN Supply Shortages
To relieve persistent retail stock-outs that have constrained ZYN availability since May, Philip Morris International (PMI) has announced a $600 million investment over the next two years to build a new oral nicotine pouch manufacturing facility in Aurora, Colorado.
PMI’s US affiliate plans to break ground on the Aurora facility later this year, with preliminary operations expected by the end of 2025 and regular commercial production slated for 2026. The state-of-the-art plant is projected to create 500 direct jobs, generate an ongoing annual economic impact of $550 million, and support an additional 1,000 indirect jobs across Colorado. In addition to the new plant, PMI is actively expanding production capacity at its existing ZYN manufacturing facility in Owensboro, Kentucky. Together, the investments in Owensboro and Aurora are designed to supply near- and mid-term US adoption growth while establishing spare capacity for future international exports.
The expansion further solidifies PMI’s expanding US presence. Headquartered in Stamford, Connecticut, PMI’s domestic affiliates employ over 2,300 people. Its local operations currently include the Owensboro plant, a regional office in Richmond, Virginia, and a smoke-free product manufacturing facility in Wilson, North Carolina, which produces HEETS heated tobacco sticks.
June 2024: PMI Suspends Zyn.com Sales Following DC Subpoena Over Flavored Nicotine Ban
Swedish Match North America (SMNA), an affiliate acquired by Philip Morris International (PMI) in November 2022, has received a subpoena from the Attorney General of the District of Columbia (DC) requesting information regarding ZYN’s compliance with DC’s municipal ban on flavored nicotine products.
A preliminary internal investigation by PMI revealed that sales of flavored nicotine pouches did occur within DC, primarily linked to certain online sales platforms and independent retailers operating in non-compliance with the local prohibition. PMI cautioned that an unfavorable legal outcome could result in a reasonably possible material liability.
In response, SMNA is launching a full internal review of its sales and supply chain arrangements across Washington, D.C., and other US localities with active flavor bans. As an immediate remedial measure during the review, SMNA is suspending all e-commerce sales on zyn.com effective immediately. The company noted that direct sales via zyn.com have accounted for only a small percentage of overall nationwide ZYN volumes since PMI completed its acquisition of SMNA.
June 2024: ZYN Supply Crunch Slows Growth, Triggers Price Hike as Rivals Rogue and VELO Seize Market Share
Persistent supply shortages and retail stock-outs are beginning to take a visible toll on ZYN’s US expansion. While Philip Morris International (PMI) posted impressive Q1 2024 shipment volumes of 131.6 million cans (+79.7% year-on-year) – aligning with NielsenIQ consumer off-take growth that peaked just above 80% in April – retail off-take growth has since cooled significantly to 50%.
Despite these bottlenecks, PMI recently reiterated its full-year 2024 guidance of 560 million cans at the Deutsche Bank Global Consumer Conference, up from its initial target of 520 million and its 2023 total of 384.8 million. However, this updated target implies a full-year growth rate of 45.5%, falling well short of underlying consumer demand observed throughout the year. Our estimates indicate that without supply constraints, ZYN could have reached 650 million cans in FY24, representing approximately 90 million cans in lost sales volume. To financially offset this lost volume during the inventory crunch, PMI is implementing a price increase that will raise the Retail Sales Price (RSP) by up to 50 cents per can.
Meanwhile, competitors are moving quickly to fill the vacuum. Swisher’s Rogue and BAT’s VELO have emerged as the primary beneficiaries of ZYN’s retail gaps, with recent year-on-year off-take growth surging into the +90% to +100% range. Capitalizing on the momentum, BAT noted in its H1 2024 Pre-close Update that early market response to the phased rollout of its refreshed VELO brand expression has been highly encouraging.
June 2024: PMI, Plans Second Factory to Address ZYN US Shortages
Speaking at the Deutsche Bank Global Consumer Conference, Philip Morris International (PMI) leadership acknowledged that surging US demand for ZYN nicotine pouches continues to strain retail availability across specific stores and SKUs. To resolve ongoing inventory bottlenecks, PMI announced that capacity expansion is already underway at its existing US manufacturing facility. The company expects product availability to improve progressively throughout the second and third quarters, with full retail inventory normalization targeted for Q4 2024.
Despite near-term supply chain pressures, PMI reaffirmed its ambitious full-year shipment target of 560 million ZYN cans in the US for 2024. Looking beyond immediate relief, the tobacco giant revealed it is actively selecting a location for a new US production facility, set to come online in 2025 to support long-term volume growth.
May 2024: ZYN Shortages Hit US Retailers as Viral “Budget Ozempic” Hype Fuels Surge in Demand
Convenience stores across the United States are facing severe stock-outs of ZYN nicotine pouches, with retailers in major markets – including New York, New Jersey, and Florida – reporting empty shelves for several consecutive weeks. Parent company Philip Morris International (PMI) previously acknowledged that ZYN’s rapid market growth was creating “tensions on the supply chain,” but distribution is now facing unprecedented pressure. Exacerbating the shortage is a growing social media trend framing the nicotine pouch as a DIY weight-loss quick fix.
Online users are touting the appetite-suppressing and stimulant effects of nicotine, pitching ZYN as an inexpensive, “make-believe” alternative to blockbuster GLP-1 medications like Ozempic. This surge in popularity among non-traditional consumers has further spiked demand, leaving retailers unable to keep pace while PMI works to stabilize its US inventory.
April 2024: US FDA Takes Action Against Retailers for Underage Sales of ZYN
US FDA announced the issuance of 119 warning letters to, and the filing of 41 civil money penalty complaints against, brick & mortar retailers that engaged in the underage sale of various flavors of ZYN nicotine pouches between October 2023 and February 2024. US FDA has also issued warning letters to three online retailers for the sale of unauthorized, flavored ZYN nicotine pouches, including Espressino, Black Cherry, Lemon Spritz, and Cucumber Lime.
Data from the 2023 National Youth Tobacco Survey show ~1.5% of youth reported currently using nicotine pouches, and use has remained unchanged among youth in recent years. However, FDA notes that they have received reports about the potential increased popularity of these products among youth, and the products are also a popular topic on social media among youth and social media influencers.
US FDA also underlines that no ZYN product has not been authorized for sale in the US as of April 2024.
March 2024: PMI Hit with First US Class-Action Lawsuit Over ZYN Addiction and “Zynfluencer” Marketing
In our note below (January 2024), we highlighted the risks associated to ZYN’s “explosive” growth in the US and mentioned the new market chatter: Is Swedish Match to PMI what JUUL was to Altria? Acquisition from Hell?
Philip Morris International now faces its first major legal challenge for ZYN in the US on the basis of ZYN being addictive and harmful to young people. The lawsuit says that ZYN pouches deliver more nicotine than cigarettes and that PMI benefits from “Zynfluencers” who promote the brand on social media (with an estimated 30,000 TikTok accounts that use the hashtag #Zyn).
The single plaintiff alleges addiction and dental issues as a result of ZYN use. The suit seeks class-action status and claims that PMI and Swedish Match failed to warn about the risk of addiction and other harmful effects like cognitive issues, cardiovascular injuries, gastrointestinal problems and gum disease. The case was brought by the law firm, whose initial lawsuit against Juul Labs investors (including Altria) expanded into thousands of legal actions and led to Altria’s eventual settlement of $235Mn.
January 2024: US Senate Majority Leader Calls for Federal Action on ZYN
In a press conference, the US Senate Majority Leader (Democrat) called ZYN “pouch packed with problems” and urged the Federal Trade Commission and Food and Drug Administration (FDA) to investigate ZYN over its marketing practices and health effects. The Senator claimed that nicotine pouches are used by teens as an alternative to e-cigarettes and called for federal action to crack down on ZYN. These comments prompted a strong reaction from Republicans who openly offered support to ZYN on Social Media3.
However, even the slightest mention of ZYN crackdown is enough to chill the market. Philip Morris International (PMI) has a high-stake bet running on ZYN: PMI expects the US nicotine pouch category to be three times of its current size in 2030 and projects US$3.5Bn net revenue from ZYN in the US. PMI even presented ZYN’s stellar results before (less than stellar) IQOS during the Q3 2023 Earnings release.
PMI paid $16 billion in 2022 to acquire Swedish Match to gain presence in the smokeless category (especially, nicotine pouches and the ZYN brand) and access to the US market (For further details: Tobacco Industry: Acquisitions). However, the US FDA is yet to offer its verdict on nicotine pouches. Review of the pending ZYN PMTAs are expected to be completed towards the mid of the year. Would US FDA reject all flavored ZYN PMTAs and hand over the flavored nicotine pouch market to the illicit products and illegal sellers? And, even worse: what if PMI finds itself drowning in US litigation due to its alleged “marketing practices” – similar to the Altria and JUUL?
The new market chatter: Is Swedish Match to PMI what JUUL was to Altria? Acquisition from Hell?
