Stacey Kennedy, President of PMI Americas and CEO of PMI USA, stated in a press release, "PMI and its U.S. affiliate are accelerating their mission to move adult smokers in the U.S. away from cigarettes by investing in a new U.S. manufacturing facility to meet the growing demand for scientifically substantiated better alternatives."
"We believe Colorado aligns with our values of innovation, economic opportunity, and public health. We are eager to partner with the state and its excellent workforce while expanding our manufacturing footprint in the U.S."
In the first quarter, Zyn sales surged by 80%, making it difficult for PMI to meet market demand. Retail stores have been facing shortages of Zyn products, and in some cases, had to limit the number of cans customers could purchase per month.
Due to a subpoena from the District of Columbia requesting information about the banned sale of flavored nicotine pouch products, the company decided to halt online sales nationwide in June, further restricting supply.
PMI is also increasing the production of Zyn nicotine pouches at its factory in Owensboro, Kentucky. The company stated that, in addition to meeting U.S. demand, these investments would help create export capacity.
Data shows that in 2023, Zyn held more than 70% of the $8.6 billion nicotine pouch market. Given the relatively young category and low brand loyalty, analysts believe that continued supply shortages may lead some consumers to switch to other brands, creating opportunities for competitors.
