Zyn, already facing shortages, has decided to halt online sales following a subpoena from the District of Columbia. The ban on flavored tobacco products, which includes nicotine pouches, in DC since October 2022, has prompted this move.
Impact on Sales and Availability
Although online sales constitute a small portion of Zyn's overall sales, the decision to stop them could exacerbate the existing shortage of the product. The company's parent, Philip Morris International, stated that Zyn was already in short supply in certain stores before the online sales were suspended.
Subpoena from District of Columbia
Zyn received a subpoena from the District of Columbia's attorney general regarding the sales of flavored products. The company offers various flavors like peppermint, cinnamon, and citrus, which are now prohibited in the region.
Compliance and Potential Liability
Philip Morris International expressed its intention to comply with the subpoena. The company acknowledged the possibility of facing material liability related to the sale of flavored nicotine pouches in DC. Despite Zyn.com's online sales being a small fraction of national volumes, the company shipped a significant number of pouches in 2023.
Regulatory Scrutiny and Underage Sales
Flavored tobacco bans akin to DC's are also enforced in California, New York, and Massachusetts. Zyn has been under scrutiny for potential underage sales, with the FDA issuing warnings to retailers. PMI emphasized that only individuals aged 21 and above can access Zyn's website.
Health Concerns and Shortage Management
Nicotine in pouches can be addictive and have adverse effects on the cardiovascular and respiratory systems. The suspension of online sales may heighten the existing Zyn shortage, prompting the company to address supply chain gaps by year-end.
Zyn enthusiasts eagerly await the resumption of shipments, as the company aims to restart deliveries in the near future. The scarcity of Zyn has created a stir among loyal consumers, highlighting the popularity and demand for the product.
Stay tuned for updates on Zyn's sales and availability as the company navigates regulatory challenges and strives to meet consumer demand.
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By: shubhangigoel@insider.com (Shubhangi Goel)
Title: Zyn Halts Online Sales of Nicotine Pouches Amid Flavored Tobacco Ban
Sourced From: www.businessinsider.com/zyn-pauses-online-nicotine-pouch-sales-dc-investigation-subpoena-flavors-2024-6
Published Date: Tue, 18 Jun 2024 07:42:13 +0000
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