As Econotimes reported on March 3, Philip Morris International (PMI) plans to sell its cigar business for more than $1 billion. This move is in line with its strategy to transition to new tobacco products.
The company acquired the cigar business through the acquisition of Swedish Match in 2022, an acquisition aimed at expanding its range of new tobacco products. Since then, PMI has launched Swedish Match’s popular product ZYN Nicotine packs in the United States, inspiring strong market demand.
While the company is working to promote smoke-free alternatives in the United States, the traditional cigarette business, particularly the iconic Marlboro brand, remains its main source of revenue. While promoting new tobacco products, PMI international markets, especially in emerging markets, remain heavily dependent on cigarette demand.
Recently, PMI reported fourth-quarter earnings that exceeded expectations and gave an optimistic outlook for 2025. At the same time, PMI’s new tobacco product IQOS has gradually gained attention in the US market after it was approved by the US Food and Drug Administration (FDA) in early 2024.