Altria Group Inc

OWNERSHIP

Publicly Traded

RANK

(out of 15)

FINAL SCORE

3.50

(out of 5)

Operating Environment

Altria Group Inc (Altria) operates in one Index Region (the Americas), and in two of the 36 Index Countries (the USA and Canada).

Altria operates exclusively in HMICs (two Index Countries).

Altria’s product portfolio consists of cigarettes, moist snuff, cigars and cigarillos, non-tobacco nicotine pouches, heated tobacco and snus.

Publicly Stated Position on Tobacco Harm Reduction

“At the beginning of 2020 we launched our new 10-year Vision. With that Vision, we are moving beyond smoking, leaning into the potential for new, innovative products to reduce the harm of traditional tobacco. I continue to believe that we can make more progress reducing the harm from cigarettes in the next decade than we have in the past fifty.”
(Bill Gifford, CEO, Altria, “Engage and Lead Responsibly 2020-2021”).

Change Since 2020 Index

Altria’s Ratio of Volume Sales (RRPs versus HRPs) increased (from 0.34 in 2019 to 0.35 in 2021, in per stick equivalent terms), reflective of Altria’s declining cigarette volumes (CAGR: -2.7%) and increased non-tobacco nicotine pouch (on!) volumes in the USA (CAGR: +108%).

In 2021, Altria increased its Ratio of M&A Expenditure (RRPs versus HRPs), following the acquisition of the remaining 20% global ownership of on! non-tobacco nicotine pouches (for a reported USD250 million).

Altria ranks first in the Lobbying and Advocacy category, in terms of both Policy Positions and Disclosure of Activities.

Category Scores

Strategy & Management

Altria publicly acknowledges its role in, and has made a formal commitment to reducing, tobacco-related death and disease through its “Moving Beyond Smoking Strategy”.
Altria has an objective related to tobacco harm reduction focusing on “innovation” and “creating conditions for harm reduction to succeed”, but the objective is not time-bound or measurable.

Product Sales

Altria has the sixth-highest Volume Sales of HRPs (2021: 108.3 billion stick equivalents).
With 26% of its total volumes coming from RRPs (moist snuff, non-tobacco nicotine pouches, heated tobacco and snus), Altria has the second-highest score for Ratio of Volume Sales (RRPs versus HRPs).

Capital Allocation & Expenditure

At 79%, Altria’s allocation of R&D Expenditure on RRPs (versus its total R&D expenditure) ranks it in fourth place.
At 47%, Altria’s allocation of Capital Expenditure (RRPs versus HRPs) ranks it in fourth place.

Product Offer

Altria offers HRPs (cigarettes, cigars, cigarillos and pipe tobacco) in one Index Country, and RRPs (moist snuff, non-tobacco nicotine pouches, heated tobacco and snus) in two.
In terms of product categories, Altria sells four HRPs and four RRPs.

Marketing Policy & Compliance

Altria outlines its Youth Access Prevention Policy (“Standards For Underage Youth Prevention”) in its code of conduct, which is set out on its corporate website.
Altria publicly discloses the number of reported violations and established breaches of its Youth Access Prevention Policy following an annual “risk assessment process” carried out by its “Corporate Audit” department.

Lobbying & Advocacy

Altria discloses its policy positions related to tobacco harm reduction through the Government Affairs sections of its corporate website.
Altria discloses its lobbying activities and memberships on its website.

Net Value Sales

In 2021

High-Risk Products

89.0%

Reduced-Risk Products

11.0%

Products Offered

In 2021

High-Risk Products

Reduced-Risk Products

Capital Allocation & Expenditure

In 2021

High-Risk Products

29.0%

Reduced-Risk Products

71.0%

ppts = Difference in percentage between 2021 and 2019