The American multinational tobacco company Philip Morris International Inc. (PMI) has cancelled a deal to sell or separate the $1 billion American cigar business. This is reported in a Philip Morris press release.
Philip Morris conducted a thorough analysis of the current unfavorable market situation and decided to preserve the cigar business, which was bought out as part of a deal with rival Swedish company Match for $ 16 billion.
Earlier, Philip Morris planned to sell the cigar business in accordance with its strategy to switch to alternatives to tobacco products, taking into account the growth in sales of Zyn nicotine bags, the production of which was also acquired as part of the deal with Match.
The Zyn nicotine sachet and IQOS tobacco stick business accounted for 42% of total net revenue in the first quarter of 2025. Philip Morris plans to produce 900 million nicotine sachets at its Kentucky plant and launch a new plant in Colorado in early 2026 to generate more than two-thirds of sales through alternative products by 2030.
Philip Morris International Inc. (PMI) is an American multinational tobacco company. It is headquartered in Stamford, Connecticut with offices in 180 countries.
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