Investing.com | Mar 24, 2023 18:48
By Sam Boughedda
Altria Group (NYSE:MO), America’s biggest cigarette company, is considering a move to expand into non-nicotine products, according to a report by The Wall Street Journal on Friday.
The company is looking to move into less harmful products after “a string of failures,” the report states. The company has an array of heated-tobacco devices, e-cigarettes, and oral nicotine pouches in the works, as well as the planned acquisition of NJOY Holdings Inc.
The company is aiming to take its reduced-risk products abroad and is looking at expanding into non-nicotine offerings such as cannabis products and caffeine pouches.
Altria has also set volume and revenue goals for its transition to smoke-free products, aiming to increase its smoke-free sales volume by at least 35% over the next five years and setting the goal of doubling its net revenue from smoke-free products to $5 billion by 2028, with $2B from new reduced-risk products.
The maker of Marlboro cigarettes announced Thursday that it has “aspirations to compete in the international innovative smoke-free and non-nicotine categories.”
“We believe the international smoke-free and non-nicotine categories combined represent multi-billion dollar opportunities for us. Our teams are evaluating these opportunities and expect to finalize strategies for these growth areas over the next 12 months,” the company said.
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Written By: Investing.com
