Tobacco giant Philip Morris International (PM.US) recently announced a $600 million investment through its U.S. subsidiary over the next two years to open a cutting-edge manufacturing facility in Aurora, Colorado. This plant will produce Swedish Match’s Zyn, a nicotine pouch brand, to meet the increasing global demand for smoke-free products among adult consumers.
Philip Morris International acquired Swedish Match, a leading nicotine pouch manufacturer, for $16 billion in 2022. The primary motivation behind the acquisition was the strong growth potential of Swedish Match’s Zyn brand.
Swedish Match introduced the Nicotine pouches-free Zyn in 2017, marking one of the few instances of a company fully transitioning away from traditional tobacco products. Zyn’s launch is seen as a pivotal moment in the rapid expansion of modern snus. While snus has been used in Europe for centuries, its popularity was largely confined to Sweden, where highly valued snus companies have thrived.
Nicotine pouches, a type of modern snus, contain nicotine along with stabilizers, fillers, sweeteners, flavors, and pH adjusters, but no tobacco. They are placed between the gums and upper lip, allowing nicotine to be absorbed through the oral mucosa and into the bloodstream within 15 to 30 minutes. They offer several advantages, including being smokeless, odorless, and not requiring spitting.
Since no smoke is produced and the lungs aren’t involved, nicotine pouches reduce the harm associated with burning traditional cigarettes. Studies indicate that the risks associated with using nicotine pouches are lower compared to e-cigarettes and heat-not-burn products, and are significantly lower than traditional tobacco use.
Additionally, nicotine pouches offer greater versatility in usage. They can be used discreetly in places like airports, meetings, or training sessions without disturbing others, making them a highly private option for nicotine consumption.
