Altria and KT&G sign a memorandum of understanding to acquire nicotine pouch company ASF and expand into the global market

Key points:

·The American company Altria Group has signed a non-binding Global Cooperation Memorandum of Understanding with the tobacco and consumer goods company KT&G to jointly explore growth opportunities in modern oral nicotine products, non-nicotine products, and optimize traditional tobacco operations. 

·Altria's subsidiary acquired shares in the Nordic nicotine pouch company ASF during KT&G's acquisition, and also plans to expand the "on!" and "on! PLUS" products to specific countries with detailed strategies. 

·Additionally, Altria's subsidiary has partnered with KT&G's Korean Ginseng Corporation (KGC) to focus on energy and health products, combining KGC's product capabilities with Altria's market resources to explore opportunities.

Altria Group announced on September 23, 2025, that they have signed a non-binding Global Cooperation Memorandum of Understanding with Korean tobacco and consumer goods company, KT&G Corporation. According to Altria, the agreement aims to leverage complementary strengths and resources to seek long-term growth opportunities in modern nicotine and non-nicotine products, and to enhance the operational efficiency of traditional tobacco business.

The memorandum is in line with Altria's strategic goal announced in March 2023, which is to seek long-term growth opportunities in the international innovative non-smoke and non-nicotine product sectors.

According to the agreement, KT&G and Altria will jointly acquire 100% of the shares of Scandinavian-based nicotine pouch manufacturer Another Snus Factory (ASF) for approximately 262.4 billion Korean won (approximately 197 million USD), with KT&G contributing approximately 160.5 billion Korean won (approximately 120 million USD) for a 51% stake and Altria holding the remaining 49%.

Altria and KT&G will explore collaboration opportunities to expand the demand for nicotine pouch products globally. Potential initiatives may include promoting the "on!" and "on! PLUS" product line in specific countries and engaging in strategic deals in the field of modern oral products.

A subsidiary of Altria and a subsidiary of KT&G, Korea Ginseng Corporation (KGC), will collaborate in exploring partnership opportunities in the United States, focusing on the energy and health products sector. In addition to innovating nicotine and non-nicotine products, Altria and KT&G have also agreed to collaborate on methods to optimize the traditional tobacco product operations process.

Altria CEO Billy Gifford expressed his excitement to collaborate with KT&G, leveraging its strengths in innovative nicotine and non-nicotine products to grow together. KT&G CEO Kyung-man Bang stated that this partnership will expand the business scope from cigarettes to nicotine pouches and other areas, opening up a growth path for the next generation of tobacco products.

Cover source provided by KT&G.