What Are Altria’s Strengths Driving Long-Term Growth?

Altria Group’s major strength is its diverse portfolio, giving it the most varied business model amongst its peers. While the company earns a majority of its revenues from its tobacco products, it also has a highly profitable wine segment, as well as a ~27% share of the economic and voting interest in SABMiller. The company also undertakes significant R&D expenditure to develop innovative products, and has a deal with Philip Morris to commercialize the products internationally. Another area which could prove to be of significant growth is the smokeless tobacco segment, wherein the company has also undertaken significant capital expenditure to develop a new manufacturing facility.

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