Company News
Turning Point Brands Names David Glazek CEO as Zig-Zag Parent Trims 2026 Profit Outlook
The company that sells Zig-Zag rolling papers, wraps, cones, and tubes in the United States has a new boss and a slightly dimmer profit forecast. Turning Point Brands announced on September 21, 2026, that President and Chief Executive Graham Purdy is resigning effective September 30 for personal reasons, and that Executive Chairman David E. Glazek will take over as CEO on October 1, according to the company's press release and a filing with the Securities and Exchange Commission.
In the same announcement, the company narrowed its 2026 adjusted EBITDA guidance to a range of $70 million to $80 million, down from the previous $70 million to $90 million. Shares fell approximately 10 percent following the news, as reported by The Motley Fool.
What Changed at the Top
Purdy spent more than two decades at Turning Point Brands in roles of increasing responsibility before becoming CEO; he will also depart from the board. The company stated his departure is unrelated to any disagreement with management or directors, and he will assist with the leadership handover.
Glazek has been involved with the company for 12 years, serving as a director, chairman, and most recently executive chairman. His background spans consumer goods, media, gaming, retail, and finance. In the official release, Glazek expressed optimism regarding the company's trajectory:
I have never been more excited about the long-term potential of the business.
He specifically pointed to what he called a transformative opportunity in the fast-growing white nicotine pouch category.
Why the Profit Outlook Came Down
While earnings targets were adjusted, revenue targets remained stable. Turning Point Brands reaffirmed 2026 guidance for its Modern Oral pouch business—which includes the FRE and ALP brands—at $330 million to $350 million in gross sales and $260 million to $270 million in net sales.
The reduction in the top end of the earnings range was attributed to two primary factors: bringing pouch manufacturing onshore will not deliver a margin benefit until 2027, and freight costs have remained elevated longer than expected. Analysts also noted competitive pressure from Philip Morris International, whose ZYN Ultra pouches recently won FDA authorization, as a factor in the sharp investor reaction.
Where Zig-Zag Fits
Zig-Zag remains a significant portion of the business even as pouches take center stage. In the second quarter of 2026, reported August 4, the Zig-Zag segment posted $35.4 million in net sales, representing about a quarter of the company's $142.9 million total. While segment gross profit was $22.6 million (down 2.1 percent year-over-year), the gross margin improved to 57.3 percent from 49.1 percent, attributed to a favorable product mix including tobacco rolling wraps and papers.
By comparison, Modern Oral net sales more than doubled to $68.4 million and now make up 48 percent of company sales, up from 26 percent a year ago. While the heritage papers business is holding its ground, the primary growth narrative for investors is currently centered on the nicotine pouch sector.
What It Means for Zig-Zag Shoppers
Nothing in the announcement affects the current Zig-Zag product line. There is no mention of discontinued papers, wraps, or tubes, and the brand's day-to-day distribution remains unchanged. The practical takeaways for consumers include:
- Continued focus on pouches: Investment is heavily directed toward oral nicotine products. Zig-Zag is expected to be managed for steady cash flow.
- Pricing and pack formats: With freight and onshoring costs cited as margin pressures, future price adjustments or mix changes are possible, though none were announced.
- Leadership continuity: As a 12-year insider, Glazek’s appointment suggests a continuation of current strategy rather than a pivot.
A2Z Tobacco continues to stock Zig-Zag flavored tobacco wraps in 25-pack cases, along with Zig-Zag papers and filter tubes, ensuring consistent availability for customers despite the corporate leadership transition.
The Bottom Line
The CEO change and trimmed earnings range at Turning Point Brands represent a corporate shift rather than a product shortage. Zig-Zag customers should expect to see the same papers and wraps on shelves this fall. Long-term, the company's data shows the brand becoming a smaller—though stable—share of a business increasingly focused on nicotine alternatives.