As reported by The Economic Times on March 3, Philip Morris International Inc. is reportedly exploring the possibility of selling its cigar business in the United States. Insiders familiar with the situation have revealed that the company is collaborating with advisors to assess the level of interest among potential buyers. The tobacco giant is aiming to fetch more than $1 billion for this asset, as it continues to pivot towards a focus on smoke-free products.

Despite still being widely recognized for its cigarette brands, Philip Morris International (PMI) is actively working to decrease its dependence on traditional tobacco-based products. Currently, 40% of the company's revenue is derived from smoke-free offerings, and this proportion is projected to soar to 67% within the next five years.

Carmen Arroyo, writing for Bloomberg, stated that "The cigar business was originally part of Swedish Match AB, which Philip Morris acquired through a $16 billion transaction that was finalized in 2023." This acquisition, which added Zyn nicotine pouches to its product portfolio, played a significant role in facilitating Philip Morris's transition away from traditional cigarettes. According to The Economic Times, discussions regarding the sale of the cigar business are still in progress. Sources, who requested anonymity due to the sensitive nature of the confidential information, have indicated that there is no guarantee that these deliberations will ultimately result in a successful sale.