Philip Morris Plans $1B Sale of US Cigar Business

Philip Morris International Inc. is considering selling its U.S. cigar business for over $1 billion as part of its strategy to transition towards smoke-free products. This potential divestment follows its acquisition of Swedish Match in 2022, which included the cigar business. The company aims to generate two-thirds of its revenue from smoke-free alternatives by 2030, up from 40% in late 2023. While traditional cigarette sales, particularly of the Marlboro brand, remain a significant revenue source, Philip Morris is increasingly focusing on products like ZYN nicotine pouches and the heated tobacco product IQOS. Recent investments in manufacturing facilities in Colorado and Kentucky further demonstrate the company's commitment to expanding its smoke-free product offerings. Despite the ongoing shift, the decline in global smoking rates continues to impact the traditional tobacco market.