Philip Morris International Suspends Online Sales on ZYN.com Amid Subpoena from D.C. Attorney General

Tobacco giant Philip Morris International has announced that it will suspend online sales on Swedish Match North America’s ZYN.com nationwide as the Zyn nicotine pouch maker responds to a subpoena from the District of Columbia.

Philip Morris acquired Swedish Match in a $16 billion deal in 2022 in an effort to reduce its reliance on cigarettes amid stricter regulations and a shift in consumer preferences towards alternatives to traditional tobacco products.

The company revealed that Swedish Match North America received a subpoena from D.C.’s Attorney General regarding its compliance with the district’s ban on the sale of all flavored tobacco products, including flavored synthetic nicotine products.

Following the ban implemented in October 2022, Philip Morris stated its intention to cooperate with D.C.’s request and acknowledged the possibility of facing a material liability if the outcome is unfavorable.

A preliminary investigation by the company indicated that there have been sales of flavored nicotine pouch products in D.C., primarily through certain online platforms and independent retailers. As a result, Swedish Match is conducting a comprehensive review of its sales and supply chain arrangements in D.C. and other U.S. localities where flavor bans may apply, leading to the temporary suspension of all sales on ZYN.com until the assessment is complete.

Despite the setback, Philip Morris has seen strong demand for its Zyn nicotine pouches in the U.S., which do not contain tobacco. Shipments of Zyn nicotine pouches grew nearly 80% in the first quarter compared to the previous year, although sales on ZYN.com represent only a small percentage of nationwide Zyn volumes, the company noted.