PMI is exploring a possible sale of its cigar business in the US, people familiar with the matter said, as the tobacco maker continues its transition to smoke-free products. The company is working with advisers to assess buyer interest in the asset, the people said. PMI wants more than USD 1 billion for the cigar business. The deliberations are ongoing and it’s not certain they will lead to a sale, said the people, who asked not to be identified discussing confidential information.



The cigar business was part of Swedish Match AB, which PMI acquired in a USD 16 billion deal in 2023. This acquisition, which also saw the company add Zyn nicotine pouches to its portfolio, helped move PMI away from traditional cigarettes. “In 2024, we announced a strategic review of our US cigar business. We have no updates at this time,” a PMI representative said in an emailed statement.

Although PMI is still known for its famous cigarette brands such as Marlboro, the company is trying to reduce its reliance on traditional tobacco products. Chief Executive Jacek Olczak has already said that the company will one day sell its last cigarette. “The destination is a given,” he told Bloomberg. Currently, about 40 per cent of sales come from smokeless products, and PMI aims to reach two-thirds of that by 2030.