Philip Morris faces class-action over Zyn nicotine pouches
The news: Tobacco giant Philip Morris is facing a lawsuit that alleges the company’s Zyn product is addictive and harmful to young people.
The numbers: The tobacco company forecast 9% profit growth for 2024 as demand for its Zyn nicotine pouches surges. When it reported Q4 and FY 2023 results in February, the company said it shipped 116.3 million cans in the US, representing growth of 78.2%.
The context: The lawsuit filed by a single plaintiff, Bailey Wolters, alleges that he has experienced addiction and dental issues due to his use of Zyn. The suit argues that Philip Morris and Match, the Swedish company which used to own Zyn, failed to warn users about the risk of addiction and other harmful effects. It also states that Zyn is growing in popularity for teens due to the nature of its marketing.
Last month, the Australian federal government said it was deeply concerned about how nicotine pouches were being advertised and supplied in the country, condemning social media marketing of the products which are aimed at a younger market.
The sources: Philip Morris 2023 Results , Bloomberg