Philip Morris invests $232 million to expand Zyn production at Kentucky plant.

Philip Morris invests $232 million to expand production of its popular nicotine pouch Zyn, part of its strategy for a smoke-free future.

Paolo Munar
08/28/2024

Philip Morris, the tobacco conglomerate, has just announced they will be investing over $232 million to expand the production line of Zyn, the nicotine mouth patch that has been gaining popularity globally. This strategy is part of the :smoke-free futureā€ which expects to add around 450 jobs, boosting the factories workplace by about 40% to keep up with the demand of these smoke-free products that are flying off the shelfs, the company stated. Zyn is a nicotine pouch that slides in between one's lip and gum that slowly releases low levels of nicotine ranging from 3mg to 6 mg, which is then absorbed into the bloodstream.

The nicotine content is absorbed and the pouch is then spit out after usage. Zyn is marketed to adult tobacco users. The Zyn does not contain tobacco, however the U.S regulators are still treating the product as if it was a tobacco product due to the nicotine content. Flavors such as mint, citrus, coffee, and wintergreen are slowly inching in comparison to replace cigarette sales. There is little research in the long term effects of these nicotine pouches, however many researches have stated the pouches contain low levels of toxic components and carcinogens. The factory is expected to be completed by 2025. As the pouches continue to increase in popularity, investors will watch ($PM) as demand increases and production increases with this new additional factory in Kentucky.

Back to articles