Philip Morris International Affiliate Subpoenaed for Flavored Nicotine Products Compliance

By Bobby Samwell • Tuesday, June 18 06:02 • Permanent Link

Philip Morris International Inc. (PMI) has announced that its affiliate, Swedish Match North America LLC (SMNA), has received a subpoena from the attorney general of the District of Columbia requesting information about SMNA's compliance with the ban on the sale of flavored products, particularly related to Zyn nicotine pouches.

SMNA has indicated that there have been sales of flavored nicotine pouch products in D.C., primarily through certain online sales platforms and some independent retailers. The company has highlighted that a material liability is reasonably possible, although not estimable at this time. As a result, SMNA 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.

In response to the subpoena, SMNA has taken steps to immediately suspend online sales on Zyn.com. It has also emphasized its commitment to ensuring compliance with all laws and regulations concerning the sale of its products in the U.S. and worldwide.

PMI, a leading international tobacco company, has been actively transitioning towards a smoke-free future, investing over $12.5 billion since 2008 to develop and commercialize innovative smoke-free products. This transition includes the acquisition of Swedish Match in 2022, creating a global smoke-free champion led by the companies' IQOS and Zyn brands. PMI's smoke-free products were available for sale in 84 markets as of December 31, 2023, and approximately 33 million adults around the world were estimated to use PMI's smoke-free products. Notably, the smoke-free business accounted for approximately 37% of PMI’s total full-year 2023 net revenues.

Furthermore, PMI has announced its ambition to expand into wellness and healthcare areas and aims to enhance life through the delivery of seamless health experiences, leveraging its expertise in life sciences through its Vectura Fertin Pharma business. Today the company's shares have moved -0.1% to a price of $102.05. For more information, read the company's full 8-K submission here.

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