On March 23, Altria held an Investor Day at the New York Stock Exchange, and its CEO Billy Gifford and the executive team announced Altria's 2028 corporate goals. These goals include the company's financial indicators and the sales and revenue of smoke-free products in the United States. However, Billy emphasized that these are all based on acquiring the e-cigarette company NJOY.
New Goals and New Products
Gifford said that its sales of smoke-free products in 2028 will increase by at least 35% based on 800 million units in 2022. In addition, the revenue from smoke-free products will increase its net income by about 1% based on 2.6 billion in 2022, which is 5 billion USD, and part of 2 billion USD will come from innovative smoke-free products.
Altria's research shows that young people have little interest in starting tobacco by trying nicotine pouches, one of the company's fast-growing products. As a result, Altria plans to launch new products that will not be attractive to adults who mainly smoke and want heated tobacco products.
It also announced two new smoke-free products: SWIC, a heated tobacco capsule product, and on! PLUS, a tobacco-derived nicotine pouch product.
Neither of the products mentioned above has yet to submit a Premarket Tobacco Product Application (PMTA) to the FDA.
But Gifford said, "We're close to delivering the final product." As for the share of the U.S. tobacco space, "our goal is to maintain our leading position."
Wish to Enter Overseas Markets
Additionally, Gifford wanted to compete commercially outside of the U.S. nicotine market.
It is worth noting that, according to 2Firsts, PMI announced at the 2021 Investor Day that it hopes to generate half of its net income from non-combustible products by 2025, while the current ratio is about one-third.
PMI plans to expand into the U.S. market to achieve this goal, spending $16 billion in 2022 to acquire Swedish Match, a U.S.-focused maker of oral nicotine pouches.
Analysis of Smoke-free Products
Smoke-free products usually refer to smoking or chewing products that do not burn tobacco, such as electronic cigarettes, cigarette pack heaters, nicotine pouches, chewing tobacco, etc. These products are often advertised as having lower health impacts because they do not release combustion products like tar and carbon monoxide in traditional cigarettes. It reduces the risk of smoking-related diseases compared with continued smoking of traditional cigarettes but does not address risks such as addiction due to the nicotine content.
Also read:
NJOY Expects Competitive Advantage in Fully Compliant US Market
Reference:
Altria Makes a New Promise to Quit Smoking
PMI aims to become a majority smoke-free business by 2025
Altria expanding smoke-free product line
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