All articles tagged with #smoke free products
Philip Morris International's stock dropped over 7% after missing quarterly sales estimates, despite a 7.1% revenue increase and an upward revision of its full-year earnings outlook, as cigarette shipment volumes declined and demand for traditional cigarettes continued to fall, though sales of smoke-free products grew significantly.
Philip Morris International plans to invest $600 million in a new Colorado plant to meet rising demand for Zyn nicotine pouches, creating 500 jobs by 2025. The company acquired Zyn owner Swedish Match in 2022 to expand its smoke-free offerings. Despite increased revenues and Zyn's popularity among young adults, the product faces legal challenges and health warnings due to nicotine addiction risks.
British American Tobacco, the owner of Camel and American Spirit cigarettes, has taken an impairment charge of $31.5 billion, mainly due to the decline in the number of people smoking. The company is in the process of shifting its business away from traditional cigarettes to "smoke-free" products and aims to generate half of its revenue from non-combustibles by 2035. The CDC survey shows a continued decrease in cigarette smoking in the US, while electronic cigarette use has risen. British American Tobacco plans to invest in its "new products" business, including vaporizers. Shares of the company fell by 8.6% following the announcement.
Altria Group, the largest cigarette maker in the US, plans to focus on smoke-free products that pose less risk to users than cigarettes, including nicotine-based products and potentially cannabis. The company is exploring new products such as pouches for a jolt of caffeine. Altria's CEO said the company wants to meet people's needs and desires and move beyond nicotine. This could be a turning point for the company and the cannabis market.