Philip Morris Considers $1B Sale of Cigar Business Amid Smoke-Free Push

Philip Morris International Inc. (NYSE: PM) is reportedly exploring the sale of its cigar business for over $1 billion, according to Bloomberg. The move aligns with the tobacco giant’s strategy to transition toward smoke-free products.

Philip Morris acquired the cigar unit through its 2022 purchase of Swedish Match, a deal aimed at expanding its smoke-free portfolio. Since then, the company has successfully introduced Swedish Match’s popular ZYN nicotine pouches in the U.S., fueling strong demand.

Despite this shift, traditional cigarettes, particularly the iconic Marlboro brand, remain a key revenue driver. While Philip Morris is pushing alternatives in the U.S., international sales still rely heavily on cigarette demand, especially in emerging markets.

The company recently reported better-than-expected fourth-quarter earnings and provided an optimistic outlook for 2025. Its IQOS smoke-free device is also gaining traction in the U.S., following FDA approval in early 2024.

With growing demand for smoke-free alternatives, Philip Morris’ potential cigar business sale marks another step in its transformation strategy.