Philip Morris International\u00a0said on Tuesday it would invest $232 million to expand production capacity for ZYN nicotine pouches at its Ownesboro, Kentucky plant, to meet the strong demand.<\/p>\n
The investment will be made through one of PMI\u2019s Swedish Match affiliates, and comes about a month after the tobacco giant announced an\u00a0investment\u00a0of $600 million to open a ZYN manufacturing facility in Colorado.<\/p>\n
Shipments of ZYN\u00a0slowed\u00a0to a growth of 54% in the second quarter, reported in July, as demand for the product created short-term supply chain constraints and impacted volume growth.<\/p>\n
ZYN, an alternative to traditional chewing tobacco products, is a nicotine pouch, which, according to Philip Morris, does not contain tobacco.<\/p>\n
Philip Morris bought Zyn-parent Swedish Match in a $16 billion deal in 2022, as tobacco companies vied for alternatives to traditional tobacco products in their portfolio amid greater health awareness and stricter regulations.<\/p>\n
In June, PMI suspended online sales at ZYN.com across the U.S. after it received a subpoena from the District of Columbia requesting information about its compliance with D.C.\u2019s 2022 ban on the sale of all flavored tobacco.<\/p>\n
There were also concerns that illicit sales of ZYN \u2014 amid supply gaps \u2014 could chip away at the numbers for PMI during the company\u2019s second-quarter conference call in July.<\/p>\n
Construction for expansion of the Kentucky facility was underway, and PMI expects to complete it by the second quarter of 2025.<\/p>\n
In order to boost production, the facility will operate at a 24-hour, seven-days-a-week basis starting from the fourth quarter this year, PMI said.<\/p>\n
The company had said in July the expansion was expected to provide around 900 million cans of capacity for ZYN for 2025.<\/p>\n<\/p>\n
Philip Morris International\u00a0said on Tuesday it would invest $232 million to expand production capacity for…<\/p>\n","protected":false},"author":0,"featured_media":3538,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-3537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts\/3537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/comments?post=3537"}],"version-history":[{"count":0,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts\/3537\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/media\/3538"}],"wp:attachment":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/media?parent=3537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/categories?post=3537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/tags?post=3537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}