According to Reuters on June 18, international tobacco giant Philip Morris International (PMI) announced on Monday (the 17th) that it will temporarily suspend online sales on the ZYN.com website of Swedish Match North America throughout the United States in response to a subpoena from Washington, D.C.
In 2022, in order to reduce its dependence on tobacco and traditional cigarettes under strict regulations, PMI acquired Swedish Match for $16 billion.
The company stated that the Attorney General of Washington D.C. has required Swedish Match North America to provide information on its compliance with the 2022 ban on all flavored tobacco sales in Washington D.C.
In October 2022, Washington D.C. banned the sale of all flavored tobacco, including flavored synthetic nicotine products.
PMI states that it intends to comply with the requirements of Washington D.C. and says that it is likely to assume significant responsibility if this matter leads to unfavorable outcomes. The company says that preliminary investigations suggest that the sale of nicotine pouch products in Washington D.C. is primarily associated with certain online selling platforms and some independent retailers.
A spokesperson from PMI responded to Reuters,
Swedish Match is conducting a comprehensive review of its sales and supply chain arrangements in Washington D.C. and other U.S. regions where flavor bans may be implemented, and has temporarily suspended all sales on ZYN.com until the assessment is complete.
The company's first quarter performance announced in April showed that shipments of Zyn nicotine pouches increased by nearly 80% compared to the same period last year. However, the company added on Monday (17th) that sales on ZYN.com account for only a "very small portion" of national Zyn nicotine pouch sales.
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