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As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

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As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

The river that supplies 40 million Americans is down to 23% — and about to make a $25 million bet on one fish
RetailTobacco

Zyn shortages leave some retailers out of stock, while online sellers ration supplies to prevent hoarding of the popular tobacco pouches

By
Tiffany Kary
Tiffany Kary
and
Bloomberg
Bloomberg
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By
Tiffany Kary
Tiffany Kary
and
Bloomberg
Bloomberg
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May 17, 2024, 6:36 PM ET
cans of Zen tobacco products
Some New York smoke shops say they’re out of Zyn.Michael M. Santiago—Getty Images

Zyn, a hit nicotine pouch made by Philip Morris International Inc., is out of stock with with multiple retailers who ship nationwide, and some wholesalers are also reporting they’re having difficulty getting the product.

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The scarcity comes after Philip Morris International, which also sells Marlboro cigarettes outside of the US, reported US volume of the nicotine pouches rocketed up 80% in the first quarter. There’s also a lawsuit about the products’ nicotine content and growing criticism of marketing practices, raising concern there could be a regulatory crackdown on the popular cigarette alternative. Zyn is an important source of growth for Philip Morris International as cigarette smoking declines and the vape industry is increasingly dominated by unauthorized products made in China.

Some New York smoke shops say they’re out of Zyn, and wholesalers in Florida and New Jersey said the pouches have been hard to get, without sharing further details. A worker at a wholesaler that distributes tobacco products in a southern US state, who asked not to be named in order to not put the company’s distribution license at risk, said the problem has been ongoing for weeks and it’s just now starting to be seen at the retail level.

A Philip Morris International spokesperson declined to comment. Swedish Match, the maker of Zyn which was acquired by Philip Morris International, also didn’t respond to request for comment. 

In its quarterly call with analysts in April, Philip Morris International Chief Financial Officer Emmanuel Babeau said that Zyn’s growth was “creating some tensions on the supply chain,” adding the company is working hard to maximize capacity.

Philip Morris International bought Swedish Match for $16 billion in 2022 and has since ramped up marketing of the product. This has led to criticism from lawmakers, including US Senate Minority leader Chuck Schumer, that the company is targeting young people.

Websites for HS Wholesale and Puff Distribution, which sell nationally, both showed Zyn as sold out on Friday, while some online sellers were rationing or trumpeting the out-of-stocks as a reason to stock up.

“We’re currently in the midst of a nationwide ZYN shortage and need to temporarily limit orders through our site to 10 cans per person within a 30-day period,” said Nicokick, a website that helps consumers try “Zyn alternatives” such as on!, made by Altria Group Inc. Nicokick, which didn’t return a call seeking comment, also says it wants to ”to avoid any hoarding or unauthorized reselling of Zyn.”

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
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