Philip Morris to invest $232 million to expand ZYN production at Kentucky plant

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Philip Morris to invest $232 million to expand ZYN production at Kentucky plant
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Philip Morris International said on Tuesday it would invest $232 million to expand production capacity for ZYN nicotine pouches at its Ownesboro, Kentucky plant, to meet the strong demand.

The investment will be made through one of PMI’s Swedish Match affiliates, and comes about a month after the tobacco giant announced an investment of $600 million to open a ZYN manufacturing facility in Colorado. Shipments of ZYN slowed to a growth of 54% in the second quarter, reported in July, as demand for the product created short-term supply chain constraints and impacted volume growth.

In June, PMI suspended online sales at ZYN.com across the U.S. after it received a subpoena from the District of Columbia requesting information about its compliance with D.C.’s 2022 ban on the sale of all flavored tobacco. There were also concerns that illicit sales of ZYN — amid supply gaps — could chip away at the numbers for PMI during the company’s second-quarter conference call in July.

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