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Philip Morris International Suspends Online Sales Amid Subpoena

Tobacco giant Philip Morris International announced on Monday that it would be suspending online sales on Swedish Match North America’s ZYN.com nationwide. This decision comes 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 dependence on cigarettes, given stricter regulations and a shift in consumer preferences towards alternatives to traditional tobacco products. With this acquisition, Philip Morris aimed to diversify its product offerings and cater to changing market trends.

The subpoena from D.C.’s Attorney General requested information from Swedish Match North America regarding its compliance with D.C.’s 2022 ban on the sale of all flavored tobacco products. This move aligns with the ongoing efforts to regulate the tobacco industry and protect public health.

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Following the ban on flavored tobacco products in D.C., Swedish Match is reviewing its sales and supply chain practices in the region and has temporarily halted sales on ZYN.com until the assessment is complete. This proactive approach underscores the company’s commitment to adhering to regulatory frameworks and addressing potential risks.

Philip Morris emphasized its willingness to cooperate with D.C.’s request and acknowledged the possibility of facing significant liabilities in connection with the compliance issue. By prioritizing transparency and compliance, businesses can mitigate legal risks and uphold ethical standards in their operations.

Furthermore, Philip Morris highlighted the strong demand for its Zyn nicotine pouches in the U.S., attributing their popularity to the absence of tobacco in the product. With shipments of Zyn nicotine pouches experiencing substantial growth, the company is optimistic about the market potential for this innovative tobacco alternative.

Despite the suspension of online sales on ZYN.com, the impact on nationwide Zyn volumes is expected to be minimal, given that online sales represent a small portion of total sales. This strategic decision reflects the company’s proactive stance on regulatory compliance and risk management.

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