Philip Morris International Inc. stock rose 8% after reporting better-than expected profit, as sales of Zyn nicotine pouches rose more than 25% last year.

The tobacco maker, which sells Marlboro cigarettes outside the US, generated adjusted diluted earnings per share of $1.55 in the fourth quarter, beating estimates.

Sales of Zyn pouches, which contain nicotine and are taken orally by stuffing them under the upper or lower lip, were fueled by Philip Morris’s core US market, where shipments rose to almost 165 million cans in the fourth quarter, up 42% compared with a year earlier.

Philip Morris is moving toward cigarette alternatives amid public health concerns about tobacco. While Zyn products contain fewer of the particles and chemicals that have linked cigarettes to cancer and heart disease, their popularity has sparked fears that young people who have never smoked have become hooked on them.

The company is building a new manufacturing facility in Colorado to meet surging demand for Zyn products, and expects US nicotine pouch shipments of between 780 million to 820 million cans next year, growth of between 34% and 41%.