Philip Morris is set to invest a bullish $800 million to expand ZYN production in states.
Countries like Canada ban them from convenience stores. Even though they can still sell cigarettes. Meanwhile, good ole’ American capitalism is doubling down: creating jobs, and providing an alternative to the act of smoking.
Philip Morris announced a $200+ million dollar investment in their Kentucky plant, and another $600 million investment to build a new facility in Colorado.The expansion at the plant in Owensboro, Kentucky is expected to add 450 jobs, boosting the factory’s workforce by about 40%, per WP.”
“In just the first quarter of this year, Philip Morris said, it sold 132 million cans of Zyn, up 80% from the same time last year.”
According to reports, Zyn has grown so much in popularity it has been having shortages of product. “Washington, D.C.'s attorney general issued a subpoena to Philip Morris, alleging that its online sales violated the District of Columbia's ban on flavored nicotine. In response, the company suspended all online sales, which caused the shortage.” (NPR)
Recently, Tucker Carlson became a Zynfluencer, and spoke with Theo Von & Nelk Boys admitting his biggest vice is the oral nicotine pouches that was “introduced to the United States in 2014 by the company Swedish Match - purchased by Philip Morris International in 2022. The pouches contain nicotine derived from tobacco plants but are otherwise tobacco-free.”
Some people call Zyn ‘the trend of the times.’ Others are concerned about the increase in consumption, demand & addiction. Like Senate Majority Leader Chuck Schumer, who called for a crack down on this Zyn-surrection.
Massachusetts is the first state to implement a “comprehensive ban on all flavored tobacco products. But this has just incentivized illicit markets.”
The Biden-Harris administration proposed a federal menthol ban reportedly - but held off due to political ramifications. “In 2020, fewer than 12,000 votes stood between Biden and Trump in Arizona and Georgia. More than 10 million Americans smoke menthols.”
I guess those swing states are just too important in 2024.
”Lawmakers have been imposing measures to discourage its use too. For instance, in July, Democratic vice presidential candidate Tim Walz's state of Minnesota added "tobacco-free products containing nicotine" to its list of tobacco products that are charged a 95% tax.”
$122 pre-$800M injection. Follow Philip Morris International through this fall, winter & election season.
