📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

Philip Morris to expand Zyn production in US with new plant in Colorado

Published 07/16/2024, 09:03 AM
Updated 07/16/2024, 09:05 AM
© Reuters. File photo: A Philip Morris logo is pictured on a factory in Serrieres near Neuchatel, Switzerland December 8, 2017. REUTERS/Denis Balibouse/File photo
PM
-

(Reuters) - Philip Morris International (NYSE:PM) said on Tuesday it would invest $600 million to open a manufacturing facility in Colorado to produce its Zyn nicotine pouches to help meet demand for alternatives to traditional tobacco products in the U.S.

The plant is expected to begin preliminary operations by 2025 and create 500 jobs in the state, the world's biggest tobacco company by market value said, adding that it would invest the amount over the next two years through one of its U.S. affiliates.

Philip Morris entered the U.S. market after it bought Zyn-parent Swedish Match in a $16 billion deal in 2022, as part of its efforts to provide alternatives to traditional cigarettes amid greater health awareness and stricter regulation.

The company has benefited from strong demand for Zyn, which it says does not contain tobacco, in the United States, with shipments rising nearly 80% in the first quarter over the year earlier.

But in June, Philip Morris suspended the nationwide sales on Zyn.com following a subpoena from the District of Columbia, which requested information about its compliance with the state's 2022 ban on the sale of all flavored tobacco.

© Reuters. File photo: A Philip Morris logo is pictured on a factory in Serrieres near Neuchatel, Switzerland December 8, 2017. REUTERS/Denis Balibouse/File photo

Philip Morris is also seeking to launch its flagship heated tobacco device IQOS in the U.S., with a test rollout expected in the second quarter — which the company is set to report next week.

But the plans faced pushback from anti-tobacco and health groups, which have written to the U.S. Food and Drug Administration to oppose IQOS-related applications the company has submitted to the agency, according to a Reuters report earlier on Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.