Tobacco giant Philip Morris International halted online sales on ZYN.com across the U.S. following a subpoena from the District of Columbia (D.C.).
Philip Morris International, a major player in the tobacco industry, suspended sales across the United States on ZYN.com. This decision directly responds to a subpoena issued by the District of Columbia (D.C.) regarding the sale of flavored tobacco products.
In 2022, Philip Morris strategically acquired Swedish Match in a $16 billion deal. The company moved to diversify its product portfolio and reduce its dependence on traditional cigarettes. With stricter regulations and a growing consumer preference for alternatives to tobacco, the acquisition seemed timely with an eye on the future.
The Attorney General for the District of Columbia recently requested information from Swedish Match North America concerning its compliance with the 2022 prohibition on sales of flavored tobacco products. In October 2022, the District of Columbia banned the sale of all flavored tobacco products, including synthetic nicotine alternatives. Philip Morris intends to fully cooperate with this investigation.
Philip Morris’s initial investigation indicates that flavored nicotine pouch products were indeed sold in D.C. These sales primarily occurred through specific online platforms and some independent retailers. Although ZYN.com represents only a small part of the national Zyn volumes, the company takes this matter very seriously,
Zyn nicotine pouches have become popular in the United States. Unlike traditional tobacco products, Zyn pouches do not contain tobacco. Shipments of Zyn nicotine pouches increased by almost 80 % over the year during the first quarter of 2024. However, the suspension of sales on ZYN.com highlights the impact of regulatory scrutiny.
Philip Morris acknowledges that there may be a material liability in the event of an unfavorable outcome in this case. The company remains committed to complying with the D.C.’s request and is keeping a close eye on this situation. In the meantime, Swedish Match North America is conducting a thorough review of its sales and supply chain in D.C. and other U.S. cities subject to flavor bans.
"Swedish Match is conducting a full review of its sales and supply chain arrangements in D.C. and other U.S. localities where flavor bans may apply and is temporarily suspending all sales on ZYN.com until that assessment is complete," a Philip Morris spokesperson told Reuters.
