Altria Group (MO) Consumer Analyst Group of New York Conference 2025 summary

Strategic vision and industry context

• Committed to leading the transition of adult smokers to a smoke-free future, investing in next-generation products and advocating for regulatory enforcement against illicit vapor products.

• Maintains stability in core business while investing for long-term growth, with consistent cash generation and shareholder returns.

• Focused on capturing the harm reduction opportunity as consumer preferences shift rapidly toward smoke-free alternatives, with a pipeline of smoke-free products and investments in oral tobacco, e-vapor, and heated tobacco.

• Emphasizes a portfolio approach across oral nicotine pouches, heated tobacco, and e-vapor platforms, aiming to compete internationally in innovative oral tobacco markets.

• Advocates for a regulatory system that fosters innovation, enforces compliance, and provides accurate consumer information about nicotine.

Smoke-free product portfolio and performance

• Oral tobacco segment, led by Copenhagen and on!, continues to deliver strong financial results and category leadership, with on! shipment volume growing 44.4% year-over-year and achieving profitability ahead of schedule.

• PMTAs submitted for on! PLUS in three varieties and strengths, with early research indicating strong differentiation and consumer appeal.

• Heated tobacco efforts include partnership with JT Group for Ploom, with FDA submissions expected mid-2024 and studies showing ~74% of users reduced cigarette consumption and significant reductions in exposure to harmful constituents.

• E-vapor segment, led by NJOY, faces challenges from patent litigation and illicit market growth, but remains a key transition category, with adult vapers 21+ rising from 8 million in 2020 to 13.5 million in 2024.

• International expansion includes doubling on! retail distribution, launching new flavors, and adding Fumi to address demand for slim-wet pouch products.

Regulatory and market environment

• Illicit e-vapor products now represent over 60% of the category, driven by lack of FDA-authorized flavored options and mislabeling of nicotine content.

• Only 2% of e-vapor volume is FDA authorized, highlighting the need for regulatory reform and more product authorizations.

• Federal and state enforcement actions are increasing, including a federal task force and updated FDA importation policies targeting illicit products.

• Company actively engages with stakeholders and policymakers to advocate for science-based regulation and enforcement.

• Youth e-vapor use has dropped from 20% in 2019 to 5.9% in 2024 among students.