Philip Morris says SMNA suspends online sales on ZYN.com after DC subpoena

In a regulatory filing, Philip Morris International disclosed a press release issued in connection with the receipt of a subpoena from the Attorney General of the District of Columbia. The company stated in the release: “Swedish Match North America LLC, or ‘SMNA,’ a Philip Morris International Inc. affiliate acquired in November 2022, has received a subpoena from the Attorney General of the District of Columbia requesting, among other things, information about SMNA’s compliance with D.C.’s ban on the sale of flavored products as it relates to ZYN nicotine pouches. The company’s affiliate, SMNA, intends to comply with the Attorney General’s request for information concerning sales of its nicotine pouch products in D.C. Our preliminary investigation indicates that there have been sales of flavored nicotine pouch products in D.C., predominantly related to certain online sales platforms and some independent retailers. In the event of an unfavorable outcome related to this matter, a material liability is reasonably possible though not estimable at this time. At the request of PMI, SMNA 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. As an initial remedial measure, while our investigation continues, SMNA is taking steps to immediately suspend online sales on ZYN.com. We reaffirm our commitment to 21+ only access and confirm that ZYN.com sales have been fully age-gated. ZYN.com sales have represented a very small percentage of nationwide ZYN volumes since PMI’s acquisition of SMNA. We remain committed to ensuring compliance with all laws and regulations concerning the sale of our affiliates’ products in the U.S. and worldwide.”