Altria Group Inc Stock

Altria Group, Inc. (Altria) provides smokeable products and oral tobacco products.

The company has a leading portfolio of tobacco products for the U.S. tobacco consumers age 21+. The company is Moving Beyond Smoking, leading the way in moving adult smokers away from cigarettes by taking action to transition millions to potentially less harmful choices - believing it is a substantial opportunity for adult tobacco consumers, the company’s businesses and society.

The company’s wholly owned subsidiaries include Philip Morris USA Inc. (‘PM USA’), which is engaged in the manufacture and sale of cigarettes in the United States; John Middleton Co. (‘Middleton’), which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco and is a wholly owned subsidiary of PM USA; UST LLC (‘UST’), which, through its wholly owned subsidiary U.S. Smokeless Tobacco Company LLC (‘USSTC’), is engaged in the manufacture and sale of moist smokeless tobacco products (‘MST’) and snus products; Helix Innovations LLC (‘Helix’), which operates in the United States and Canada, and Helix Innovations GmbH and its affiliates (‘Helix ROW’), which operate internationally in the rest-of-world, are engaged in the manufacture and sale of oral nicotine pouches; and NJOY, LLC (‘NJOY’), which is engaged in the manufacture and sale of e-vapor products. Other wholly owned subsidiaries include Altria Group Distribution Company, which provides sales and distribution services to the company’s domestic operating companies; and Altria Client Services LLC (‘ALCS’), which provides various support services to the company’s companies in areas such as legal, regulatory, research and product development, consumer engagement, finance, human resources and external affairs.

On June 1, 2023, the company completed its acquisition of NJOY Holdings, Inc. (‘NJOY Holdings’), the parent of NJOY. As a result of the acquisition, NJOY became a wholly owned subsidiary of Altria.

In October 2022, the company entered into a joint venture with JTI (US) Holding, Inc. (‘JTIUH’), a subsidiary of Japan Tobacco Inc. (‘Japan Tobacco’), for the U.S. marketing and commercialization of heated tobacco stick (‘HTS’) products. The joint venture entity, Horizon Innovations LLC (‘Horizon’), is structured to exist in perpetuity and is responsible for the U.S. commercialization of HTS products owned by either party. PM USA holds a 75% economic interest in Horizon with JTIUH having a 25% economic interest. The parties plan to collaborate on a global smoke-free partnership. Horizon is governed by a board of managers, which is consisted of four individuals designated by PM USA and three individuals designated by JTIUH.

At December 31, 2023, the company’s reportable segments were Smokeable Products and Oral Tobacco Products. The company’s all other category included (i) the financial results of NJOY (beginning June 1, 2023); (ii) Horizon; (iii) Helix ROW; and (iv) the IQOS System heated tobacco business due to the relative financial contribution of these businesses to the company’s consolidated results. Prior to the Ste. Michelle Transaction, wine produced and/or sold by Ste. Michelle was a reportable segment.

The company’s investments include Anheuser-Busch InBev SA/NV (‘ABI’) and Cronos Group Inc. (‘Cronos’), which the company accounts for under the equity method of accounting using a one-quarter lag.

The company’s operating companies include PM USA, USSTC, Middleton, Helix and NJOY.

The products of the company’s operating companies include: (i) smokeable tobacco products, consisting of combustible cigarettes manufactured and sold by PM USA and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; (ii) oral tobacco products, consisting of MST and snus products manufactured and sold by USSTC and oral nicotine pouches manufactured and sold by Helix; and (iii) e-vapor products contract manufactured by third-parties and sold by NJOY.

Cigarettes: PM USA is the largest cigarette company in the United States and substantially all cigarettes are manufactured and sold to customers in the United States. Marlboro, the principal cigarette brand of PM USA, has been the largest-selling cigarette brand in the United States for over 45 years. Total smokeable products segment’s cigarettes shipment volume in the United States was 76.3 billion units in 2023.

Cigars: Middleton is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco. Middleton contracts with a third-party importer to supply substantially all of its cigars and sells substantially all of its cigars to customers in the United States. Black & Mild is the principal cigar brand of Middleton. Total smokeable products segment’s cigars shipment volume was approximately 1.8 billion units in 2023.

Oral Tobacco Products: USSTC is the leading producer and marketer of MST products. The oral tobacco products segment includes the premium brands, Copenhagen and Skoal, and a value brand, Red Seal, sold by USSTC. In addition, the oral tobacco products segment includes on! oral nicotine pouches sold by Helix. Substantially all of the oral tobacco products are manufactured and sold to customers in the United States. Total oral tobacco products segment’s shipment volume was 782.9 million units in 2023.

E-Vapor Products: NJOY contracts with third-party importers to supply all of its products and sells its e-vapor products to customers in the United States. NJOY ACE is the principal e-vapor product of NJOY. NJOY is the only e-vapor manufacturer to receive market authorizations from the U.S. Food and Drug Administration (‘FDA’) for a pod-based e-vapor product.

Other Tobacco Products: In connection with the joint venture agreement with JTIUH, Horizon will market and commercialize HTS products, which are defined in the joint venture agreement as products that include both (i) a tobacco heating device intended to heat the consumable without combusting and (ii) a consumable that meets the definition of a cigarette under the U.S. Federal Cigarette Labeling and Advertising Act. Horizon is responsible for the U.S. commercialization of HTS products owned by either party and, upon authorization by the FDA of a pre-market tobacco application (‘PMTA’), will become the exclusive entity through which the parties market and commercialize HTS products in the United States. Upon PMTA authorization of Ploom HTS products, JTIUH will supply Ploom HTS devices and PM USA will manufacture Marlboro HTS consumables for U.S. commercialization.

In October 2022, the company agreed to assign to Philip Morris International Inc. (‘PMI’) exclusive U.S. commercialization rights to the IQOS Tobacco Heating System (‘IQOS System’) effective April 30, 2024.

Distribution

The company’s tobacco subsidiaries sell their tobacco products principally to wholesalers (including distributors) and large retail organizations, including chain stores.

Government Regulations

The company and its subsidiaries (and former subsidiaries) are subject to various federal, state and local laws and regulations concerning the discharge of materials into the environment, or otherwise related to environmental protection, including in the United States: the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation and Liability Act (commonly known as ‘Superfund’). The company’s subsidiaries (and former subsidiaries) are involved in several matters subjecting them to potential costs of remediation and natural resource damages under Superfund or other laws and regulations.

History

Altria Group, Inc. was founded in 1822. The company was incorporated in the Commonwealth of Virginia in 1985.