Struggles and Opportunities for Tobacco Giant Altria.

Aug.10.2022
Struggles and Opportunities for Tobacco Giant Altria.
Altria, a tobacco giant, has suffered setbacks with investments in Juul Labs and IQOS, causing a decline in their stock value.

A tobacco giant has just gone through a series of unfortunate events.


Altria finds itself in a position where its traditional cigarette business has been more successful than its newer tobacco products.


Tobacco company Altria fell short of analysts' revenue predictions for the second quarter, but exceeded profit expectations. Its investment in e-cigarette manufacturer Juul Labs was dealt a major blow by the US Food and Drug Administration, which ordered the removal of its products from store shelves.


Photo credit: GETTY IMAGES


Meanwhile, the US International Trade Commission has ruled that the import of IQOS heated tobacco devices by Philip Morris International into the country is prohibited. These devices are sold under Altria's Marlboro heated tobacco brand, resulting in a setback for Altria's harm reduction product development.


This is reflected in its stock price, which has dropped by one-fifth in the past three months. These stocks rose by 20% in June, but have fallen by nearly 7% overall this year. This has left investors questioning whether it is worthwhile to purchase Altria's stocks.


With traditional smoking rates in long-term decline, Altria is now the only major tobacco company on the market without an electronic cigarette. Let's take a look at whether adding this tobacco stock to your investment portfolio would result in losses.


Negatively impacted by the market.


Inflation also comes at a cost. While Altria's own expenses are rising as a result, its customers are also having to deal with skyrocketing food and energy costs, which reduces their limited disposable income and leads them to prioritize their investments.


In the first quarter, revenues decreased by 5.7% to $6.5 billion, although this figure includes the impact of Altria's sale of its wine business in October last year. After deducting consumption tax, revenues decreased by 4.3% to $5.4 billion.


However, adjusted profits increased by nearly 3%, to $1.26 per share, as Altria repurchased over 21 million shares of stock in the first six months of this year. Although net profits declined, this was largely due to Altria's investments in Juul, Anheuser-Busch InBev, and cannabis producer Cronos.


Despite performing well, the brewery had to completely write off its investments in Russia - the rise in foreign exchange rates temporarily lowered the fair value of these investments below their book value, resulting in non-cash impairment charges. Cronos also weighed on performance, causing a $120 million loss in equity investments for the quarter.


However, the true heavy blow was to Juul, as Altria's $13.4 billion investment in the company has now decreased in value by 35%. It has now been valued at $450 million due to the decreased likelihood of the FDA revoking its decision on Juul products (the agency did indeed pause the ban to review its decision). If the FDA upholds its ban, Juul is expected to declare bankruptcy.


Rising from the ashes.


This appears to be a gloomy landscape, but Altria also has many things to do.


The company can once again invest in its electronic cigarette business, as its investment in Juul prevented it from doing so unless the transaction value decreased by 90% or more. With experience in such products through its previously shelved MarkTen brand, it can relaunch these products or even acquire existing ones.


Altria has also invested in other smokeless tobacco options, including nasal snuff and nicotine pouches. It owns the Copenhagen and Skoal brands of nasal snuff, as well as the On! brand of nicotine pouches that was introduced a few years ago.


Tobacco products that are consumed orally make up nearly 47% of the market, with the 200-year-old Copenhagen brand holding a leading position with a 27.2% market share. The On! brand has grown to almost 5% of the market. Altria's Marlboro brand has been the market leader for the past 45 years, continuing to hold close to half of the traditional cigarette market.


Development opportunities


Altria is performing well financially, with its stock being very affordable, trading at only eight times next year's earnings. The stock is priced at around $44 per share, a departure from 2015 and the market crash earlier in the pandemic.


Altria's stock is an attractive buy with its rich 8.1% dividend, which has increased annually for over 50 years and earned it the title of dividend king.


Statement:


This article is compiled from third-party information and is solely intended for industry professionals to share and learn from.


This article does not represent the views of 2FIRSTS, and 2FIRSTS cannot confirm the authenticity and accuracy of its contents. The translation of this article is only intended for communication and research within the industry.


Due to limitations in translation abilities, the translated article may not accurately reflect the original text. Please refer to the original text for accuracy.


2FIRSTS aligns completely with the Chinese government's domestic, Hong Kong/Macau/Taiwan-related, and international expressions and positions.


The copyright of the compiled information belongs to the original media and author. If there is any infringement, please contact us for deletion.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Philip Morris Romania Executive on Smoke-Free Strategy: How IQOS Spaces Are Moving Beyond Retail to Consumer Connection
Philip Morris Romania Executive on Smoke-Free Strategy: How IQOS Spaces Are Moving Beyond Retail to Consumer Connection
In an interview with Romanian marketing publication IQads, Marek Gębski, Director of Smoke-Free Products at Philip Morris Romania, said IQOS experience spaces are evolving from traditional retail locations into platforms for consumer engagement and brand connection. Through locations such as IQOS Boutique Victoriei, PMI aims to use design, culture and consumer experiences to strengthen communication with adult consumers about smoke-free products. The interview highlights how tobacco companies are expanding smoke-free strategies beyond products toward experiential marketing and consumer relationships.
Aug.11
BAT New Categories Revenue Rises 18% in H1 2026 as Broad Portfolio Offers More Ways to Win—and Lose
BAT New Categories Revenue Rises 18% in H1 2026 as Broad Portfolio Offers More Ways to Win—and Lose
British American Tobacco’s New Category revenue rose 18% at constant rates in the first half of 2026. Nicotine-pouch brand Velo expanded rapidly, while Vuse recovered as U.S. enforcement against illicit e-vapor products strengthened. Heated-tobacco platform glo remained under pressure, and cigarettes continued to provide most of the group’s profit and cash. Compared with PMI and JT, BAT has more routes to growth—but also greater regulatory, investment and execution risks across its broader portfolio.
BAT
Jul.30
Ispire Q4 Revenue Rebounds 33% but Full-Year Sales Still Fall 25% as FY2027 Focus Shifts to Malaysia Manufacturing, ODM, Nicotine Pouches and Age Verification
Ispire Q4 Revenue Rebounds 33% but Full-Year Sales Still Fall 25% as FY2027 Focus Shifts to Malaysia Manufacturing, ODM, Nicotine Pouches and Age Verification
Ispire Technology reported FY2026 revenue of about $96 million, down 24.7% year over year, as U.S. cannabis-vapor hardware and European e-cigarette sales declined by $17.4 million and $12.7 million, respectively. Fourth-quarter revenue rose 32.5% to $26.7 million, while quarterly gross margin fell to 6.3%. For FY2027, the company is prioritizing Malaysia manufacturing and vapor ODM while continuing to develop nicotine pouches, IKE Tech age-verification technology and G-Mesh licensing. Ispire has not separately disclosed the revenue or profit contribution of those newer businesses.
Regulations
Sep.17 by 2Firsts Perspectives
R.J. Reynolds Vapor Company Launches Flavored Vuse Pro Pods in U.S. Without FDA Marketing Authorization
R.J. Reynolds Vapor Company Launches Flavored Vuse Pro Pods in U.S. Without FDA Marketing Authorization
R.J. Reynolds Vapor Company has begun selling four flavored Vuse Pro pods — Peach, Berry, Watermelon and Fresh Mint — in Ohio and selected other U.S. markets. According to the Vuse U.S. FAQ, Vuse Pro contains approximately 5.0% nicotine by weight, and Vuse Pro pre-filled pods are intended for use with Vuse Alto devices. Reynolds told 2Firsts that product labeling lists an e-liquid capacity of 2.0 mL per pod. The Vuse Alto Power Unit received FDA marketing authorization in 2024, while the new Vuse Pro pods themselves have not received marketing granted orders. The rollout follows the FDA’s May 2026 revision of enforcement priorities for certain unauthorized vaping products with qualifying pending applications.
BAT
Sep.10
Kantar Study Finds More Than 93% of Vape Products in Ukraine Fail Regulatory Requirements
Kantar Study Finds More Than 93% of Vape Products in Ukraine Fail Regulatory Requirements
According to Interfax-Ukraine, a study conducted by market research firm Kantar Ukraine at the request of major tobacco companies found that more than 93% of vape products in Ukraine did not fully comply with regulatory requirements. The research examined product categories, brand distribution and consumer purchasing channels, showing that pod systems and disposable vapes represent major segments of the market, while offline retail remains the dominant purchasing channel. The findings highlight ongoing compliance challenges in Ukraine’s vape market.
Aug.26
Scottish Vape Display Rules Could Cost Businesses £61 Million, Affecting More Than 11,000 Retail Outlets
Scottish Vape Display Rules Could Cost Businesses £61 Million, Affecting More Than 11,000 Retail Outlets
A Scottish government impact assessment estimates that proposed vape display and packaging rules could create up to £61 million ($82 million) in compliance costs for businesses, affecting more than 11,000 retail outlets. The estimated costs are mainly linked to inventory adjustments, retail storage changes and the resources required for businesses to understand and implement the new requirements. The measures form part of the UK’s broader efforts to tighten vape regulation, particularly around product displays, packaging and sales practices.
Aug.10