The expanded Colorado buildout comes as British American Tobacco's Velo gains share, Zyn Ultra rolls out in the U.S., and Philip Morris looks to strengthen supply and exports through 2028.
Philip Morris International is adding another $600 million to its Aurora, Colorado manufacturing campus, taking total investment to $1.2 billion through 2028 as it works to defend Zyn's lead in the U.S. nicotine pouch market. The move comes as British American Tobacco's Velo Plus has gained ground while Philip Morris contended with regulatory delays, a limited Zyn lineup and supply shortfalls that left shelves understocked in 2024. Zyn still holds a 31% share of the U.S. nicotine pouch category, versus roughly 8% for Velo, but Philip Morris said Velo Plus gained nearly seven percentage points of share over the past year while Zyn added less than one. CEO Stacey Kennedy said the company faced "asymmetry in the portfolio" after going nearly a decade without launching a new Zyn variant while awaiting U.S. Food and Drug Administration authorization. That product gap began to narrow in June with the U.S. launch of Zyn Ultra, a softer and stronger pouch aimed at shifting consumer preferences. Philip Morris said the Aurora expansion will lift capacity for Zyn Ultra, support U.S. supply and position the site as an export base for Asia, Latin America and the Caribbean. The investment also comes after the FDA authorized Philip Morris to market Zyn as less harmful than traditional cigarettes, giving the brand a regulatory and marketing advantage as the company shifts toward smoke-free products.