September 2026: Altria Breaks Ground on $250 Million Manufacturing Expansion in Hopkinsville, Kentucky
Altria Group has officially broken ground on a $250 million expansion of its U.S. Smokeless Tobacco Company (USSTC) facility in Hopkinsville, Kentucky. The 270,000-square-foot project represents a strategic effort to optimize Altria’s traditional smokeless tobacco manufacturing footprint, centralize operations, and build long-term operational resilience. The expanded facility is expected to create more than 200 local jobs, roughly doubling USSTC’s existing workforce in the state. Altria highlighted the project as a major commitment to both the regional economy and the modernization of its core supply chain.
At the center of this investment is a broader footprint consolidation. USSTC will systematically transfer processing, production, and packaging activities from its 800,000-square-foot facility in Nashville, Tennessee, into the enlarged Hopkinsville plant. Operations in Nashville will wind down by early 2028, after which Altria plans to sell the property. Construction and operational integration at the Hopkinsville site will proceed over the next two years, aligning with the targeted early 2028 completion of the Nashville transition.
By bringing operations for flagship moist smokeless tobacco brands – including Copenhagen, Skoal, Red Seal, and Husky – under one main roof, Altria will eliminate cross-site duplication, lower fixed costs, and streamline manufacturing efficiency. While Altria continues to expand its broader smoke-free portfolio with products like on! nicotine pouches and NJOY e-vapor devices, this project demonstrates a parallel commitment to keeping its established tobacco operations highly efficient and reliable.
August 2026: Altria Increases Quarterly Dividend by 4.7% to $1.11 Per Share
Altria increased the regular quarterly dividend by 4.7% to $1.11 per share versus the previous rate of $1.06 per share. The new quarterly dividend is payable on October 9, 2026 to shareholders of record as of September 15, 2026. The new annualized dividend rate is $4.44 per share, representing a dividend yield of 6.4% based on the latest closing stock price of $69.10. The dividend increase is consistent with Altria’s progressive dividend goal that targets mid-single digits dividend per share growth annually through 2028 and marks the 61st dividend increase in the past 57 years.
August 2026: Altria and Philip Morris International Partner on U.S. Manufacturing Contract to Boost Efficiency and Regional Supply
Altria Group, Inc. and Philip Morris International Inc. have entered into a contract manufacturing agreement under which Philip Morris USA, an operating subsidiary of Altria, will produce traditional combustible cigarettes for PMI’s non-U.S. affiliates. The collaboration leverages the manufacturing capabilities of PM USA to support PMI’s international market needs while allowing both organizations to maintain distinct commercial operations. Initial shipments under the arrangement are expected to begin in early 2027, subject to operational readiness and applicable regulatory requirements. Neither company anticipates that the agreement will have a material financial impact on its 2026 financial results.
Under the terms of the agreement, Altria and PMI will continue to operate entirely independently, each maintaining sole responsibility for their own commercialization, distribution, and regulatory activities. PMI explicitly reaffirmed that it has no presence in or plans to enter the U.S. combustible cigarette market, and this manufacturing partnership will not alter that stance.
For Altria, the collaboration aligns directly with its 2028 Enterprise Goals by maximizing operational efficiency at its domestic facilities and generating economic returns. Crucially, the cigarette import/export mechanism is critical for Altria to benefit from federal duty drawback provisions, allowing the company to claim rebates on federal excise duties paid. The resulting economic benefits will help fund Altria’s strategic investments in its long-term smoke-free Vision.
For PMI, establishing a cigarette manufacturing footprint in the United States offers a strategic advantage by optimizing supply chain logistics and shipments across the Americas region. By utilizing PM USA’s existing production capacity, PMI can fulfill international combustible demand more efficiently while concentrating its primary capital investments on accelerating its global smoke-free transition.
December 2025: U.S. FDA Grants Market Authorization to Six on! PLUS Nicotine Pouch Products
The U.S. Food and Drug Administration (FDA) has authorized the marketing of Altria’s six on! PLUS nicotine pouch products, marking the first authorizations issued under a new pilot program launched in September 2025 and aimed at fast-tracking premarket tobacco product application (PMTA) reviews. The authorized on! PLUS products include tobacco, mint, and wintergreen flavors in 6 mg and 9 mg nicotine strengths. Altria submitted the PMTAs for these products in June 2024. By comparison, in January 2025 the FDA issued its first-ever nicotine pouch authorizations to 20 ZYN variants – more than five years after Swedish Match (now part of Philip Morris International) initially submitted the PMTAs.
The FDA’s decision allows the six on! PLUS nicotine pouch products to be legally marketed and sold in the United States to adults aged 21 and older. However, Altria had already initiated a limited U.S. launch of on! PLUS in September 2025, prior to receiving authorization. Altria stated that it will resume taking new on! PLUS orders for retail accounts in Florida, North Carolina, and Texas, as well as through the e-commerce channel.
December 2025: Altria Names Sal Mancuso as the New CEO
Altria announced that Billy Gifford, Altria’s Chief Executive Officer (CEO), has decided to retire, effective May 14, 2026 at the conclusion of the 2026 Annual Meeting of Shareholders. Billy worked over 30 years for Altria and served as Altria’s CEO since 2020. Altria’s Board of Directors elected Salvatore (Sal) Mancuso to serve as CEO upon Billy’s retirement and Heather Newman to serve as Chief Financial Officer (CFO) effective May 14, 2026, at the conclusion of the 2026 Annual Meeting.
Sal joined Philip Morris USA in 1990 and has served in numerous leadership positions during his career at the Altria family of companies, including as Altria’s Executive Vice President and CFO since 2020 and in various other roles in strategy, finance and compliance organizations. He also currently serves on the board of directors of Anheuser-Busch InBev (ABI) as an Altria designee.
Heather joined the Altria family of companies in 1999 and has served as Altria’s Chief Strategy and Growth Officer since March 2022. Heather currently oversees corporate strategy and development, international and new growth ventures, and digital and transformation organization. She previously served in numerous leadership positions, including President and CEO, PM USA.
October 2025: Altria Quietly Offers Early Access to on! PLUS for Registered on! Users
Ahead of the official launch, Altria quietly offers early access to on! PLUS for registered on! users through pre-launch invitations. Altria notified the registered users of an upcoming U.S. launch and explained the on! PLUS flavor line-up, nicotine levels, and shipping or mail-order possibilities. Strategically, this early offering reflects Altria’s effort to migrate existing on! consumers to the “soft-bodied” on! PLUS pouches before chasing new users and while re-assessing its stance (i.e. launch without authorization) in the light of the new, expedited FDA review proces.
Competitors, most notably British American Tobacco (BAT)’s VELO, significantly expanded its product line-up, and the market-leader Philip Morris International’s ZYN upped its promotional activity in the U.S. – resulting in a gradual decline of on!’s market share. By engaging loyal users first, Altria presumably aims to protect its base, gather feedback, and rebuild product perception at a time when innovation, sensory quality and promotions are shaping the category. The pre-launch access to registered users thus serves both as a retention strategy and a soft relaunch of Altria’s nicotine pouch franchise.
Recall: Altria announced that on! PLUS nicotine pouches will be launched in North Carolina, Texas, and Florida in Fall 2025 without waiting for the outcome of the FDA review for pre-market authorization. Altria maintains that it has followed all regulatory protocols (e.g. ingredient disclosures, facility inspections) and the FDA review has stretched unreasonably beyond the statutory timelines.
October 2025: Altria Loses the $38 Million Federal Tax Refund Dispute
Altria lost its bid for a $38 million tax refund after a Virginia federal court ruled the company was liable for income tied to foreign subsidiaries through its stake in Anheuser-Busch. At the heart of the dispute was Altria’s 10.2% stake in Anheuser-Busch InBev, which owned subsidiaries generating taxable income. Altria opposed being taxed as a minority shareholder with no control or decision-making power.
U.S. District Judge sided with the federal government, holding that the 2017 Tax Cuts and Jobs Act (TCJA) eliminated a key rule that once shielded companies from being taxed as indirect shareholders of controlled foreign corporations (CFCs). Altria had argued the change was a minor amendment, not a wholesale repeal. But the Judge disagreed, writing that the law “struck the passage” outright, making Altria’s tax liability unavoidable. The Judge stated that Congress deliberately expanded the reach of Subpart F rules to prevent U.S. corporations from indefinitely deferring taxes on foreign income. Altria’s broader lawsuit sought $106 million in refunds, alleging overpaid transition taxes and miscalculated credits; the recent ruling marks a setback for Altria in favor of the federal government.
September 2025: Altria and KT&G Jointly Acquires Another Snus Factory (ASF)
Altria and KT&G jointly acquired Another Snus Factory (ASF) for SEK1.76 billion (US$186 million). For the period ending December 31, 2024, ASF reported total revenue of SEK 655 million (US$62 million) and net income of SEK 3.65 million (US$0.35 million). As of December 31, 2024, ASF reported total assets of SEK 412 million (US$37 million). According to K&G, ASF’s Loop nicotine pouches command a top-3 position in the Nordics.
KT&G executed the initial acquisition of a 100% stake in ASF and, subsequent to the Global Collabration Agreement with Altria, KT&G and Altria owns a 51% and 49% stake in ASF, respectively. At the 2025 Investor Day, KT&G also shared a tentative expansion plan for the ASF business, covering the European, Middle Eastern and South-East/East Asian markets. The expansion is also likely to bring Altria’s on! and on! Plus nicotine pouches to these markets.
September 2025: Altria Enters into Agreement with KT&G to Pursue Long-term Adjacent Growth
Altria entered into a non-binding Global Collaboration Memorandum of Understanding (MoU) with KT&G to use the combined complementary strengths and offerings in the joint pursuit of long-term growth opportunities with modern oral nicotine products, non-nicotine products and operating efficiency in traditional tobacco. The MoU aligns with Altria’s pursuit of its long-term adjacent growth goals in international innovative smoke-free products and non-nicotine products that were announced in March 2023.
As part of the collabration,
– Altria and KT&G will explore opportunities to contribute their respective resources and capabilities to expand the global demand for nicotine pouch products. These efforts may include the expansion of the on! and on! PLUS product portfolio to select countries, and/or strategic transactions in the modern oral space. As an initial step in this exploration, an Altria subsidiary signed a definitive agreement with KT&G whereby, concurrent with KT&G’s acquisition of Another Snus Factory Stockholm AB (ASF), a Nordic-based nicotine pouch company, Altria’s subsidiary will acquire an ownership interest in ASF. ASF owns the LOOP brand internationally.
– An Altria subsidiary and KT&G’s subsidiary, Korea Ginseng Corporation (KGC), a leading Korean ginseng company, will jointly explore opportunities in the U.S. with a focus in the growing energy and wellness segment. The exploration will seek ways to apply KGC’s product expertise and capabilities alongside Altria’s deep consumer insights and established go-to-market infrastructure.
– In addition to the focus on innovative nicotine and non-nicotine products, Altria and KT&G have agreed to jointly pursue ways to optimize operating processes for traditional tobacco products to benefit the competitiveness of each company in their respective home regions.
Altria states that the complementary market experience and capabilities of two companies can accelerate the pursuit of long-term adjacent growth goals across international regions and adjacent product categories. KT&G states that through this collaboration, a path to growth in next-generation tobacco products is secured by expanding the business from cigarettes to nicotine pouches and other areas.
August 2025: Altria Announced the Launch of on! PLUS Nicotine Pouches in the U.S.
Altria’s Helix subsidiary announced that on! PLUS nicotine pouches will be launched in North Carolina, Texas, and Florida in Fall 2025. on! PLUS is manufactured in Richmond, Virginia, and will be available in Mint, Wintergreen, and Tobacco flavors. Each pouch is offered in multiple nicotine strengths (6mg, 9mg, and 12mg) and features Altria’s proprietary NICOSILK mesh technology. Read more: On Plus (on! PLUS) Nicotine Pouches
Altria announced the launch on! PLUS without receiving marketing authorization from the U.S. FDA. In June 2024, Helix subsidiary submitted a Premarket Tobacco Product Application (PMTA) to the FDA, comprising over 25,000 pages of scientific and regulatory documentation prepared by a team of more than 50 experts. Altria stated that they have met the requirements under the Tobacco Control Act and proactively notified the FDA of intent to launch. However, the FDA’s review timelines have extended far beyond the 180-day statutory requirement. Thereby, Altria believes that they have complied with all regulatory requirements to bring on! PLUS to market – disclosing ingredients, opening facilities for inspection, and submitting marketing materials for review.
July 2025: Altria Partners with the Golf Course Association
Altria’s on! nicotine pouches become an executive partner of the National Golf Course Owners Association (NGCOA), the trade association dedicated exclusively to golf course ownership and operations. Helix, Altria’s subsidary that manufactures and markets on! nicotine pouches, will provide NGCOA members with discounted on! nicotine pouches through the NGCOA Smart Buy Marketplace and will be recognized as a multi-year executive partner at various NGCOA conferences. Through this partnership, Altria aims to reach thousands of nicotine consumers that play golf.
April 2025: Altria Stopped Selling NJOY ACE in the U.S.
On January 29, U.S. International Trade Commission (ITC) issued a Final Determination that Altria’s NJOY ACE infringed all four patents that Juul Labs asserted against it, and issued orders prohibiting Altria and NJOY from importing and selling the infringing NJOY ACE products until the patents expire in 2034 and 2037. ITC’s market exclusion orders took effect on March 31, 2025 and Altria stopped selling NJOY ACE in the U.S. Consumers can still buy NJOY ACE until the retailer inventories run out. Read more: Patents Wars
Altria completed the acquisition of NJOY in June 2023 for $2.75 billion upfront and $500 million conditional payment. With the authorization of NJOY Ace Menthol by the U.S. FDA, condition for an additional $250 million payment is met. Accordingly, Altria has – so far – paid $3billion for a “stolen” product that cannot be marketed in the U.S.
Altria’s due diligence work [prior to the NJOY acquisition] failed to identify:
(1) The rise of illicit, disposable vapes in the U.S. market (recall: Altria already announced that 2028 Enterprise Goal of $5 billion smoke-free net revenue will not be delivered due to the U.S. vape market being dominated by the illicit disposables)
(2) The lack of freedom-to-operate for NJOY ACE (as restricted by the others’ patented technologies).
March 2025: VCU will Purchase Altria’s Richmond Research Facility
Virginia Commonwealth University (VCU) received state approval to buy Altria Group‘s 450,000-square-foot research building in downtown Richmond. The Altria Center for Research and Technology (CRT), which opened in 2007, is assessed for $275 million. Discussions between VCU and Altria were initially reported in October 2024.
In the event of a sale, Altria plans to remain in the CRT building for several years while building a new research facility, likely on the Philip Morris USA’s Manufacturing Center complex, located near Instate 95 in South Richmond.
February 2025: Altria Presents at CAGNY 2025
Altria Group presented at the Consumer Analyst Group of New York (CAGNY) conference, outlining market trends, its growth strategy and financial performance. The key message Altria delivered is:
“Altria remains committed to long-term shareholder value, transformation to smoke-free products and navigating regulatory & legal hurdles. Altria’s strategy focuses on harm reduction, product innovation, maintaining market leadership and ensuring sustainable growth in an evolving industry”
Evolution of the US Nicotine Market:
– The U.S. nicotine market is shifting towards the smoke-free alternatives. Approximately 33% of 55 million adult nicotine consumers now use smoke-free products only, up from 21% (of 53 million consumers) in 2019. There are 8 million dual users of smoke-free products and combustibles (the same as 2019) and 28 million combustible users (6 million less than 2019).
– Smoke-free volume growth is offsetting declines in cigarette & cigar sales, with a 2% overall compound annual growth rate (CAGR) in nicotine volumes.
– Altria sees smoke-free alternatives as a key opportunity in harm reduction, investing in nicotine pouches (on!), heated tobacco (SWIC & Ploom) and e-vapor (NJOY).
Oral Tobacco & on!:
– The oral tobacco market volume grew +8.5% in 2024; number of oral tobacco users reached 8.5 million in 2024 with nicotine pouch users tripling in the past three years to 3.5 million.
– Altria’s on! nicotine pouch volume saw a +44.4% growth in 2024, reaching 8.9% share (+2.0pp) in the oral tobacco category. on! now has 800,000 repeat purchasers (with more than 40% year-on-year growth), representing 9.4% share of consumer in oral tobacco and 22.9% in nicotine pouches alone.
– Altria’s U.S. Smokeless Tobacco Company (USSTC) improved its share in the (declining) premium moist smokeless tobacco (MST): from 56.9% in 2020 to 59.6% in 2024 (+2.7pp).
E-vapor & NJOY:
– Illicit vapes drive +30% growth in e-vapor category in 2024. There are now 20 million vapers (+2 million vs. 2023) in the US, 13.5 million (+1.5 million vs. 2023) of whom are (illicit) disposable vape users. More than 60% of the US e-vapor market is illicit.
– In 2024, nearly 40% of new entrants into the e-vapor category were not prior smokers (i.e. initiation of nicotine use with vapes).
– NJOY, Altria’s e-vapor brand, is gaining traction in the (legal) market, but both regulatory and legal challenges persist – including a patent infringement lawsuit with JUUL Labs. Read more: Patents Wars.
– Until meaningful progress is made to address the illicit market and increase product authorizations (i.e. authorized products currently represent only 2% of the e-vapor market), Altria will take a disciplined approach to (i.e. reduce significantly) its investments in e-vapor.
Heated Tobacco & SWIC-Ploom:
– Heated tobacco will comprise ~5% of the U.S. nicotine space over the long term.
– Altria will participate in the category with Japan Tobacco’s Ploom (through the established joint-venture) and SWIC (own development being test marketed in the UK). Read more: SWIC Heated Tobacco Device
– 74% of Ploom users have meaningful reductions in cigarettes: with 31.5% completely stopping to smoke and 42.1% reducing cigarette consumption by more than 50%.
Smokeable products & Marlboro:
– Despite cigarette volume declines, Altria’s smokeable segment remains highly profitable (61.6% operating income margin), with a 3.6% per annum operating income growth from 2019 to 2024.
– Marlboro continues to be best selling-cigarette in the US with 41.7% share in volume (-1.4pp in the last 5 years) and 46.8% share in value (+2.3pp). Moreover, Marlboro improved its share in the highly profitable premium segment from 57% in 2019 to 59.3% in 2022. Read more: USA: Brand of Smokes
International Expansion & Beyond Nicotine:
– Altria is exploring international markets with nicotine pouches. on! is currently launched in the UK and Sweden and expansion to other international markets will take place in 2025. Read more: On Plus (on! PLUS) Nicotine Pouches
– Altria is also investing in non-nicotine adjacencies, including energy, relaxation, and stress relief products, tapping into a $100 billion addressable market. The first of five non-nicotine product Altria aims to distribute by 2028 is Proper Wild energy drinks. Read more: Beyond Nicotine: Altria
Financial Strength & 2025 Outlook:
– Altria returned more than $40 billion to shareholders through dividends and share buybacks and delivered 4% annual EPS growth in the past five years.
– Altria is planning to balance share repurchases, dividends (a mid-single digit dividend growth), investments and debt repayment (maintaining a strong debt-to-EBITDA ratio of 2.0x) while delivering a mid-single digit EPS growth (2024-28)
– 2025 EPS: $5.22 to $5.372, representing a growth rate 2% to 5% from a 2024 base of $5.12 (re-confirmed).
Download Altria’s CAGNY 2025 presentation.
June 2024: PMTA Submission for on! PLUS
Altria announced the submission of Pre-market Tobacco Product Applications (PMTAs) to the US Food and Drug Administration (FDA) for on! PLUS oral nicotine pouch products. The PMTAs were submitted by Helix Innovations, a wholly-owned subsidiary of Altria.
on! PLUS is a tobacco-derived nicotine (TDN) pouch product made from a proprietary “soft-feel” material to provide a more comfortable experience and is larger than the leading US brands. Helix submitted PMTAs for nine products: three flavors (tobacco, mint, wintergreen) in three different nicotine strengths.
Helix currently sells on! nicotine pouches in the US. In Q1 2024, on! reported +32% year-on-year shipment volume growth, achieving 7.1% retail share of the total US oral tobacco category (a distant #2). Recall that ZYN’s shipment volume grew +80% in the same period.
June 2024: NJOY Receives First-ever FDA Authorizations for Menthol Vaping Products
The US FDA issued marketing orders to four NJOY menthol products: two NJOY ACE menthol pods (2.4% and 5% nicotine strength) and two NJOY DAILY disposables (4.5% and 6% nicotine strength). These authorizations are based on the FDA review of the PMTAs submitted by NJOY in March 2020 (i.e. more than 4 years from application to the conclusion of review). For further details: The US FDA: PMTA.
Altria states that “FDA authorization of NJOY menthol e-vapor products provides regulated alternatives to the illicit flavored disposable e-vapor products”. In addition to NJOY ACE being the only pod-based e-vapor product with marketing authorization from the FDA, NJOY franchise now has the first and only menthol e-vapor products authorized by the FDA to date. In Q1 2024, NJOY broadened distribution to over 80,000 stores and expects to expand to ~100,000 stores by year-end. NJOY also moves forward with the roll-out of the first retail trade program to achieve optimal retail visibility and product fixture space.
As a result of the marketing orders issued, Altria is obliged to pay additional $250 million in relation to the NJOY acquisition. In May 2024, NJOY submitted a supplemental PMTA to the FDA for the NJOY ACE 2.0 device which incorporates Bluetooth-enabled access restriction technology (i.e. user authentication before unlocking the device in order to prevent underage use). NJOY also re-submitted PMTAs for Blueberry and Watermelon pod products that work exclusively with the NJOY ACE 2.0 device. Contingent upon the FDA’s issuance of marketing orders for the Blueberry and Watermelon pod products, Altria may be obliged to pay (up to) $250 million in additional cash payments.
May 2024: NJOY Submits PMTAs for ACE 2.0 with Bluetooth-enabled Access Restriction Technology
NJOY submits supplemental Pre-market Tobacco Product Applications (PMTAs) to the US FDA for NJOY ACE 2.0 device – which has a Bluetooth-enabled access restriction technology designed to prevent underage use by authenticating the user before unlocking the device1. NJOY also re-submitted PMTAs for Blueberry and Watermelon pod products that work exclusively with the NJOY ACE 2.0 device – claiming that age & identity-based access restrictions are effective at preventing underage access in virtually all cases. Recall that NJOY previously received Marketing Denial Orders (MDOs) for its Blueberry and Watermelon pods mainly due to the US FDA’s underage use concerns.
NJOY re-iterates its aim to “responsibly provide flavored options for adult smokers and vapers” and positions the ACE 2.0 device “as a sound solution for US FDA to balance the known risk to youth with an opportunity to offer adults legal, regulated flavored products (e.g. instead of illicit disposables)”.
NJOY ACE is currently the only pod-based e-vapor product (device and three tobacco-flavored pods) with marketing authorization from the FDA. In Q1 2024, NJOY broadened distribution to over 80,000 stores and expects to expand to ~100,000 stores by year-end. NJOY is also rolling out a retail trade program, which is designed to help achieve better retail visibility and product fixture space. For further details: Altria: Q1 2024 Results
June 2023: NJOY Acquisition & FY23 Guidance Update
Altria completed the acquisition of NJOY and updated FY23 EPS guidance in connection with this acquisition (i.e. as a result of the planned investments behind the US commercialization of NJOY ACE)2
– Identified a total of ~70,000 US retail stores for the initial NJOY ACE expansion phase. This represent ~70% of e-vapor volume and 55% of cigarette volume in the US multi-outlet and c-store channel
– Financial results for NJOY to be reported within the “All Other”category as of Q2 2023
– Expects the Transaction to be cash flow accretive in 2025 and EPS accretive in 2026. Also expects the return on invested capital to exceed the current WACC by 2027
As a result of the Transaction, FY23 EPS guidance is reduced by $0.09-$0.10 (~2%)
– New guidance: EPS in a range of $4.89-$5.03, representing a growth rate of 1%-4% from a base of $4.84 in 2022
– Old guidance: EPS in a range of $4.98-$5.13, representing a growth rate of 3%-6%
We note that: Altria’s financial return expectations from Strategic Transactions has proven to be overly optimistic in the past (e.g. JUUL, Cronos). Thereby, we take the “expectations from the NJOY acquisition” with a pinch of salt. Moreover, we expect the Altria’s future earnings growth to be negatively impacted by further “RRP catch-up investment”.
References:
- https://investor.altria.com/press-releases/news-details/2024/NJOY-Submits-Premarket-Tobacco-Product-Applications-to-the-FDA-for-NJOY-ACE-2.0-Featuring-Bluetooth-enabled-Access-Restriction-Technology/default.aspx ↩︎
- https://investor.altria.com/press-releases/news-details/2023/Altria-Completes-Acquisition-of-NJOY-Holdings-Inc.-Updates-2023-Full-Year-Earnings-Guidance/default.aspx ↩︎
