Philip Morris suspends nationwide sales on Zyn online after D.C. subpoena

Philip Morris announced that it would suspend online sales on Swedish Match North America’s ZYN.com nationwide as the Zyn nicotine pouch maker responds to a subpoena from the District of Columbia.

Philip Morris acquired Swedish Match in a $16 billion deal in 2022 as part of its strategy to reduce reliance on cigarettes amid stricter regulations and a consumer shift towards alternatives to tobacco and traditional cigarettes.

The company stated that Swedish Match North America received a subpoena from the D.C. attorney general requesting information about its compliance with D.C.’s 2022 ban on the sale of all flavored tobacco products.

In October 2022, D.C. banned the sale of all flavored tobacco, including flavored synthetic nicotine products.

Philip Morris expressed its intention to comply with D.C.’s request and noted that, in the event of an unfavorable outcome, a material liability is reasonably possible.

The company’s preliminary investigation indicated that there have been sales of flavored nicotine pouch products in D.C., primarily through certain online sales platforms and some independent retailers.

“Swedish Match 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 and is temporarily suspending all sales on ZYN.com until that assessment is complete,” a Philip Morris spokesperson told Reuters.

Philip Morris has benefited from strong demand for its Zyn nicotine pouches in the U.S., which the company asserts do not contain tobacco.