Jul 16, 2024 - Business
Philip Morris to build $600M Colorado plant to meet Zyn demand
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Philip Morris International plans to build a new factory in Colorado to make Zyn nicotine pouches.
Why it matters: The company is enjoying surging sales of the smokeless product.
- PMI — which is independent of Philip Morris USA owner Altria — bought Zyn owner Swedish Match for $16 billion in 2022.
Driving the news: The $600 million plant will be constructed in Aurora, Colorado, with plans to hire 500 workers.
How it works: Zyn is designed to be placed between the gum and upper lip for the user to absorb nicotine without swallowing, Axios' April Rubin reported.
- The pouches are discrete and don't produce smoke or odors like cigarettes and e-cigarettes.
- It doesn't contain tobacco leaf, but the FDA considers it to be part of the tobacco industry.
Yes, but: The company recently temporarily halted online sales after the District of Columbia sent a subpoena requesting information on whether Zyn pouches comply with its ban on the sale of flavored tobacco.
- Critics warn that nicotine is addictive and can be a gateway to smoking — but advocates, including PMI, say it's a safer alternative to cigarettes.
