Philip Morris Halts Zyn Online Sales

The company received a subpoena from D.C. regarding a ban on flavored tobacco in the District of Columbia.

June 19, 2024

Philip Morris International announced that it would suspend online sales on its Swedish North America’s as the nicotine pouch maker responds to a subpoena from the District of Columbia, Reuters reported. The company said the subpoena from D.C.’s Attorney General is requesting information about its compliance with D.C.’s 2022 ban on the sale of all flavored tobacco within the District of Columbia.

"Swedish Match is conducting a full review of its sales and supply chain arrangements in D.C. and other U.S. localities where flavor bans may apply and is temporarily suspending all sales on until that assessment is complete," a Philip Morris spokesperson told Reuters.

According to the Wall Street Journal, the company noted that “a preliminary company investigation found that there have been sales of flavored nicotine pouch products in Washington, D.C.”

Many of the sales found in the preliminary investigation were associated with online sales platforms and independent retailers, the company said.

“The tobacco company said it could face an unspecified ‘material liability’ if there is ‘an unfavorable outcome’ related to the matter, adding that it will comply with the request for information,” Bloomberg wrote.

Philip Morris acquired Zyn maker Swedish Match in 2022 with a $16 billion takeover, Bloomberg reported. The acquisition gave the company a U.S. distribution center and new smoke-free products. “It has since ramped up marketing for Zyn, and U.S. shipments of the pouches rose nearly 80% to 131.6 million cans during the company’s first quarter,” Bloomberg wrote.

“ sales represent ‘a very small’ percentage of nationwide Zyn volumes since Philip Morris acquired SMNA in November 2022,” the Journal reported.