HQ
US
OWNERSHIP
Publicly Traded
RANK
4
(out of 15)
FINAL SCORE
1.69
(out of 5)

Company Overview

Altria operates exclusively in the US, where it is the largest cigarette manufacturer, selling over 100 billion sticks in 2019. Although the company’s cigarette volume sales declined by 12.7% between 2017 and 2019, the company is still reliant on high-risk product categories – cigarettes, cigars, and pipe tobacco – for 90% of total tobacco value sales in 2019. Altria has made significant investments in reduced-risk products, notably its 35% stake in JUUL Labs. However, the company later wrote-down two-thirds of the value of its investment citing the intensifying regulatory scrutiny surrounding vaping in the US and internationally. Its reduced-risk performance is supported by sales of Swedish-style snus and, more recently, non-tobacco nicotine pouches, and heated tobacco after FDA authorizations granted in 2019.

Stance on Harm Reduction

Altria articulates its commitment to harm reduction through a 10-year vision stating that it wants “to responsibly lead the transition of adult smokers to a non-combustible future.” To support this, it advocates the importance of stakeholder and regulator engagement. However, it has not set or reported on specific, measurable, or timebound targets tied to harm reduction, nor a public commitment to phase out high-risk products.

Notable Performance

0

Strategy and Management

Altria has made a specific commitment to tobacco harm reduction and has taken steps to embed it in its management systems.
0

Product Sales

Altria’s ratio of reduced-risk versus high-risk product is almost negligible.
0

Capital Allocation

Altria committed USD12.8 billion to purchase a 35% stake in JUUL Labs in 2018.
0

Product Offer

Altria offers twice as many high-risk as reduced- risk products.
0

Marketing

Altria has detailed voluntary marketing and youth access prevention practices, which apply across marketing channels and are supported by training.
0

Lobbying and Advocacy

Altria’s policy positions and lobbying activities are clearly published on its corporate website.

Net Value Sales

In 2019
High-Risk Products
99.9%
Reduced-Risk Products
0.1%

Products Offered

In 2019
High-Risk Products
6
Reduced-Risk Products
3

Capital and R&D Investment

Over 2017-2019
High-Risk Products
50.2%
Reduced-Risk Products
49.8%

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