Zyn Nicotine Pouch Shortages Reported in Several US States

Zyn, a well-known brand of nicotine pouches, is facing stock shortages in certain states across the US, including New York, New Jersey, and Florida.

Supply Chain Challenges Acknowledged by Philip Morris International

During a recent company call, the Chief Financial Officer of Philip Morris International highlighted the supply chain issues affecting the availability of Zyn products.

Popularity Surge Among White-Collar Workers

Zyn's popularity has seen a significant increase among white-collar workers, particularly on Wall Street, where the colorful and flavored gum-like pouches have become a common choice for a quick energy boost.

Reports from smoke shops in New York indicate that the pouches, priced at around $5, are currently out of stock. Wholesalers in New Jersey and Florida have also reported difficulties in obtaining Zyn products, with one industry insider mentioning that the shortage has persisted for several weeks.

Philip Morris International, the manufacturer behind Zyn, acquired the company responsible for producing the pouches in 2022. The company's CFO, Emmanuel Babeau, acknowledged the strain on the supply chain due to the rapid growth of Zyn's popularity.

Despite the increased demand, Philip Morris International did not provide an immediate response to Business Insider's request for comment.

Booming Popularity and Market Growth

Zyn has been available in the US since 2014 but has experienced a surge in popularity in recent years. Office workers, Wall Street traders, and even Republican lawmakers have embraced the pouches as a convenient and discreet nicotine option.

In February, the company reported a significant increase in shipments of flavored nicotine pouches, with nearly 385 million cans shipped in the US in 2023, marking a 62% year-over-year growth. The company anticipates even stronger performance in 2024, with an estimated 520 million cans set to be shipped this year.

As the company aims to expand its smoke-free product offerings amid declining cigarette sales globally, concerns about the addictive nature and potential health risks of nicotine have been raised by medical experts and research studies.

The Food and Drug Administration has also intensified efforts to curb underage sales of Zyn, issuing warning letters to retailers and filing civil complaints against those found selling the product to minors.

With the growing demand for Zyn products and ongoing supply chain challenges, the future availability of these popular nicotine pouches remains uncertain.

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By: shubhangigoel@insider.com (Shubhangi Goel)
Title: Zyn Nicotine Pouch Shortages Reported in Several US States
Sourced From: www.businessinsider.com/zyn-nicotine-pouches-out-stock-shortage-new-york-jersey-florida-2024-5
Published Date: Mon, 20 May 2024 03:21:30 +0000