Plans have now been firmed up in Aurora, Colorado for the construction of a manufacturing facility that will produce nicotine pouches.
The 600,000 square-foot-plant, to go up on the northeast side of the city, will belong to the Stamford, Connecticut-based tobacco company Phillip Morris International.
The facility is only the latest evidence of the rapidly growing demand for the smokeless tobacco product that is placed behind the lip and absorbed through the gums.
Put on the domestic market in 2014, the brand name Zyn is now regarded as an industry phenomenon with monthly sales of 20 million pouches in can form in 2019 jumping to 140 million in 2022 and well over 261 million last year.
Announcement of the new Aurora plant is the result of negotiations between Phillip Morris and state, county, and local officials.
“We worked with the company on a very specific vision that was needed in a very short timeframe,” Wendy Mitchell, chief executive officer of the Aurora Economic Development Council, said in a press release announcing the new Zyn facility.
Matters were substantially hastened with the granting of a $7 million incentive from the City of Aurora, as well as incentives of some $4.5 million each from the State of Colorado and Adams County.
Health experts remain divided on nicotine pouch use, with some saying they can lead to addictions and diseases of the mouth.
In a statement, however, Stacey Kennedy, chief executive officer of Phillip Morris, said use of the pouches are moving adults away from “cigarettes in the U.S. by investing in new U.S. manufacturing capacity to meet the increasing demand for nicotine options that are scientifically substantiated as better alternatives.”
It is thought that at full bore, the Aurora Zyn facility will employ upwards of 5,000 people.
Work on the plant is expected to begin later this year, with the facility becoming entirely operational by the end of 2025.
By Garry Boulard
