ALTRIA GROUP INC.

Company Overview

Altria Group Inc., a prominent U.S.-based tobacco conglomerate, stands as one of the largest entities globally in the manufacturing, production and marketing of tobacco, cigarettes and associated products. Its subsidiaries, including Philip Morris USA, U.S. Smokeless Tobacco Company, John Middleton and Helix Innovations, have contributed to its significant presence in the industry. The company made a foray into the e-cigarette market in 2014, introducing its brand of electronic cigarettes in the United States. However, by December 2018, concerns surfaced regarding the appeal of e-cigarettes among American teenagers, prompting Altria to discontinue its e-cigarette products in response to the escalating controversies.

Subsequently, Altria ventured into a strategic investment by acquiring a minority stake in JUUL Labs, the market leader in e-cigarettes. However, this move led to investigations by the U.S. Food and Drug Administration (FDA) due to the rising concerns surrounding teenage vaping. Eventually, amidst prolonged controversies and FDA scrutiny, Altria terminated its investment in JUUL e-cigarettes in May 2023.

In a strategic shift, in June 2023, Altria made a significant acquisition by purchasing NJOY Holdings Inc., a U.S.-based e-cigarette company, for approximately $2.75 billion in cash. This acquisition signified a fresh commitment by Altria, particularly the Marlboro maker, toward re-engaging with the e-cigarette market. Notably, six of NJOY Holdings Inc.’s products had received full approval from the U.S. Food and Drug Administration, bolstering Altria’s confidence in this renewed venture.

Throughout its evolution within the e-cigarette domain, Altria Group has encountered regulatory challenges, controversies and strategic shifts. However, the acquisition of NJOY Holdings Inc. showcases Altria’s persistence and determination to establish a foothold in the evolving landscape of alternative tobacco products, leveraging the products’ full approval by the FDA to potentially reshape its position within the market.

Financial Highlights (FY 2024)

Company's Business Segments

• Smokeable Products : Combustible Cigarettes, Machine-made Large Cigars
• Oral Tobacco Products : MST products, Oral Nicotine Pouches
• All Other : NJOY, Horizon, Helix International, Other business activities