A Philip Morris logo is pictured on a factory in Serrieres near Neuchatel, Switzerland, December 8, 2017. REUTERS/Denis Balibouse/File photo
Philip Morris International (PM.N) announced on Tuesday its plans to invest $600 million in a new manufacturing facility in Colorado to produce its Zyn nicotine pouches, aiming to meet the growing demand for alternatives to traditional tobacco products in the U.S.
The plant is slated to commence preliminary operations by 2025 and is expected to create 500 jobs in Colorado. This investment will be made over the next two years through one of Philip Morris’s U.S. affiliates.
Philip Morris entered the U.S. market after acquiring Zyn-parent Swedish Match in a $16 billion deal in 2022, as part of its strategy to offer alternatives to traditional cigarettes amid increasing health awareness and stricter regulations.
The company has seen significant demand for Zyn, which it claims does not contain tobacco, in the U.S., with shipments rising nearly 80% in the first quarter compared to the previous year.
However, in June, Philip Morris suspended nationwide sales on Zyn.com following a subpoena from the District of Columbia, which sought information regarding its compliance with the state’s 2022 ban on the sale of all flavored tobacco.
Philip Morris is also planning to launch its flagship heated tobacco device, IQOS, in the U.S., with a test rollout expected in the second quarter — a plan set to be reported next week.
Nevertheless, these plans have encountered resistance from anti-tobacco and health groups, who have written to the U.S. Food and Drug Administration to oppose IQOS-related applications submitted by the company, according to a Reuters report earlier on Tuesday.
Source: APNews
