Philip Morris International’s (PMI) bet on Zyn, a popular nicotine pouch, as its golden ticket away from cigarettes, seems to be hitting a rough patch. The company recently halted online sales of Zyn in the US after a subpoena from the District of Columbia (DC) Attorney General’s office raised questions about flavoured product sales in the region, where such products are banned.

This latest development reignites concerns about Zyn’s meteoric rise and the broader challenges facing Big Tobacco’s attempts to shift gears towards “potentially less risky alternatives.”

Deja Vu of the Vaping Debacle?

The controversy surrounding Zyn bears a striking resemblance to the vaping crisis that rocked the industry five years ago. Zyn’s explosive sales growth, coupled with the rise of social media influencers promoting the product (“Zynfluencers”), has regulators worried, particularly about potential youth uptake.

While Zyn pouches are nicotine-based and don’t contain tobacco, health experts remain concerned about their long-term effects and potential for addiction, especially among non-smokers. This is further fueled by the first lawsuit filed against PMI in March, alleging the company targeted teenagers in their marketing campaigns.

Beyond Flavors: A Broader Scrutiny

The DC case might be just the tip of the iceberg. With similar flavour bans in place across several states and localities, further investigations into Zyn’s sales and marketing practices are likely. The potential for wider restrictions on flavours, potency, or even an outright ban looms large, mirroring the fate of vaping products.

For Big Tobacco, heavily reliant on dwindling cigarette sales in developed markets, Zyn and other smoke-free alternatives represent a lifeline. PMI, the industry leader in “modern oral tobacco” with products like Zyn and the IQOS heated tobacco device, aims to generate two-thirds of its revenue from these potentially reduced-risk products by 2030.

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