According to a report by Bloomberg on May 20th, the popular nicotine pouch brand ZYN, owned by PMI, may become harder to find in several states, including New York, New Jersey, and Florida.
Some tobacco shops in New York have revealed that the nicotine pouches costing around $5 retail price have sold out. Wholesalers in New Jersey and Florida have also reported difficulties in stocking ZYN. It is said that this shortage has been ongoing for several weeks. During the April earnings conference call, the company's CFO Emmanuel Babeau stated that the growth of ZYN has "undoubtedly brought some tension to the supply chain."
In February of this year, PMI company reported that sales of ZYN in the United States are expected to reach nearly 385 million cans by 2023, a 62% increase compared to the previous year. The company predicts that business performance in 2024 will be even better, with sales in the US expected to reach 520 million cans this year. As global tobacco consumption continues to decline, the company has been pushing to create more smoke-free products.
In April 2024, the Food and Drug Administration (FDA) issued warning letters to retailers selling ZYN nicotine pouches to minors and filed civil penalty complaints. The agency stated that it had sent 119 warning letters to retailers from October 2023 to February 2024 and filed 41 civil lawsuits.
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