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Here are 1-3 brief analogies for Altria (MO):

• The Anheuser-Busch InBev (BUD) of tobacco, holding iconic brands like Marlboro.

• The Procter & Gamble (PG) of the tobacco world, managing a portfolio of well-known, albeit controversial, brands.

• The Harley-Davidson (HOG) of the tobacco industry – an iconic American brand known for its loyal customer base and dividends, navigating a shifting market.

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• Cigarettes: Altria's primary product, including leading brands like Marlboro, Parliament, and Virginia Slims, sold in the U.S. market.
• Smokeless Tobacco: This category includes moist smokeless tobacco brands such as Copenhagen, Skoal, and Red Seal.
• Cigars: Altria produces machine-made large cigars under the Black & Mild brand.
• Oral Nicotine Pouches: A modern oral product offering tobacco-leaf-free nicotine pouches under the on! brand.

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• Performance Food Group Company (NYSE: PFGC): Through its subsidiary Core-Mark, Performance Food Group is one of the largest wholesale distributors to convenience stores in North America, a primary channel for Altria's tobacco products.
• McLane Company (a subsidiary of Berkshire Hathaway Inc. - NYSE: BRK.A, BRK.B): McLane is one of the largest wholesale distributors in the United States, providing grocery and non-food items (including tobacco) to convenience stores, drug stores, and mass merchandisers across the country.

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Billy Gifford, Chief Executive Officer

Mr. Gifford was appointed Chief Executive Officer of Altria Group in April 2020. He previously served as Vice Chairman and Chief Financial Officer since May 2018. A 25-year veteran of the company, he joined Philip Morris USA in 1994. Mr. Gifford has held numerous leadership roles in Strategy & Business Development, Finance, Marketing Information & Consumer Research, and served as President and Chief Executive Officer of Philip Morris USA Inc. Before joining Philip Morris USA, he worked at the public accounting firm of Coopers & Lybrand (now PwC). He serves on the board of Anheuser-Busch InBev.

Sal Mancuso, Executive Vice President and Chief Financial Officer

Mr. Mancuso serves as Executive Vice President and Chief Financial Officer for Altria Group. With over 32 years at Altria, he has held a variety of leadership roles across the Finance, Compliance, and Strategy & Business Development organizations. His previous roles include Senior Vice President, Finance and Procurement, and Treasurer & Senior Vice President, Investor Relations and Accounting. Prior to joining the Altria family of companies, Mr. Mancuso worked for Pittston Company. He serves on the Board of Directors of Anheuser-Busch InBev and as Chair of the Board of the Greater Richmond Partnership.

Jody Begley, Executive Vice President & Chief Operating Officer

Mr. Begley serves as Executive Vice President & Chief Operating Officer for Altria Group. He has over 25 years of experience with Altria, bringing extensive sales, marketing, and strategy expertise from across Altria's family of companies. Prior to his current appointment, he served as Senior Vice President, Tobacco Products for Altria Group and as President and General Manager of Nu Mark, where he led the development and marketing of innovative tobacco products. He joined Philip Morris USA in 1995. Mr. Begley serves on the Board of Directors for Cronos Group.

Paige Magness, Senior Vice President, Regulatory Affairs

Ms. Magness serves as Senior Vice President, Regulatory Affairs for Altria Client Services. In this role, she leads U.S. Food and Drug Administration-related regulatory strategy, engagement, communications, and advocacy for Altria's tobacco operating companies. She joined the Altria family of companies in 2002 and has held various communications and corporate affairs roles within Kraft Foods, Philip Morris USA, and Altria Client Services.

Murray R. Garnick, Executive Vice President & General Counsel

Mr. Garnick serves as Executive Vice President & General Counsel for Altria.

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The key risks to Altria's business (MO) are:

1. Accelerating Decline in Combustible Cigarette Volumes: Altria faces a significant operational challenge due to the ongoing and accelerating decline in domestic cigarette shipment volumes, which are decreasing at an annual rate of 8-10%. This trend is driven by decreasing smoking rates and a shift towards discount brands, leading to a shrinking customer base for traditional tobacco products. While pricing power has historically offset some revenue loss, this strategy has limitations, and the company remains heavily reliant on its smokeable segment.
2. Intense Regulatory Scrutiny and Potential Bans: The tobacco industry is subject to extensive regulation, posing constant threats to Altria's business model. Risks include scrutiny from the FDA and the potential for federal bans on menthol cigarettes and flavored cigars, as well as state and local flavor bans that are a continuous and growing threat. Additionally, proposed FDA rules to reduce nicotine levels in combustible products could fundamentally alter Altria's core business if finalized.
3. Challenges and Competition in Reduced-Risk Products (RRPs): Despite efforts to diversify into smoke-free products, Altria faces significant challenges in its reduced-risk product portfolio. These include setbacks such as a U.S. International Trade Commission ruling in 2025 that found Altria's NJOY ACE e-vapor products infringed on patents, leading to a prohibition on their import and sale. The proliferation of unregulated and illicit disposable e-vapor products further undermines Altria's legal, FDA-authorized products, hindering its smoke-free volume and revenue goals. The RRP market is highly competitive and rapidly evolving, requiring continuous innovation and regulatory authorization to maintain market share.

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The proposed ban by the U.S. Food and Drug Administration (FDA) on menthol cigarettes and flavored cigars poses a clear emerging threat. Menthol cigarettes represent a significant portion of Altria's core cigarette portfolio and the overall U.S. market. A ban would necessitate a major disruption to Altria's product offerings and sales strategy in its most profitable segment.

The rapid growth and market share expansion of nicotine pouch products, particularly brands like ZYN (owned by Philip Morris International, but sold in the US), represents a clear emerging threat. These smoke-free, spit-free oral nicotine products are disrupting the broader oral tobacco market, attracting consumers from traditional moist snuff (a segment where Altria has a significant presence with Copenhagen and Skoal) and potentially from cigarettes, thereby shifting consumer preferences away from Altria's established product categories.

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Altria (MO) primarily operates within the United States tobacco market, offering a diversified portfolio of smokeable and smoke-free products. The addressable markets for their main products or services are as follows:

• U.S. Cigarette Market: The U.S. cigarette market was valued at approximately $87.3 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of over 1% from 2022 to 2027. In 2022, cigarettes accounted for 68.1% of the overall U.S. tobacco market share.
• U.S. Moist Smokeless Tobacco (MST) and Oral Nicotine Pouch Market: The U.S. smokeless tobacco market, which includes moist smokeless tobacco and oral nicotine pouches, was valued at approximately $4.02 billion in 2024 and is projected to reach $5.3 billion by 2033, growing at a CAGR of 3.12% between 2025 and 2033. In 2024, moist snuff alone held a 91.87% share of the smokeless tobacco market. Oral nicotine products represented 5.0% of the overall U.S. tobacco market in 2022.
• U.S. E-Vapor (E-cigarette) Market: The U.S. e-cigarette and vape market was valued at $8.98 billion in 2022 and is expected to expand at a CAGR of 29.8% from 2023 to 2030, reaching an estimated $69.53 billion by 2030. Other estimates place the U.S. e-cigarette market at $13.7 billion currently and $6.04 billion in 2025, projected to reach $6.59 billion by 2030 with a CAGR of 1.74%. The market for e-cigarettes in the U.S. is also projected to grow from $45.19 billion in 2024 to $200.42 billion by 2035. In 2022, e-cigarettes (ENDS) accounted for 4.2% of the total U.S. tobacco market.
• U.S. Heated Tobacco Products Market: The United States heated tobacco products market was valued at $8.36 billion in 2024 and is projected to reach $46.5 billion by 2033, demonstrating a substantial CAGR of 20.95% during the forecast period of 2025-2033.

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Altria Group (MO) is strategically positioning itself for future revenue growth over the next 2-3 years by focusing on a diversified approach that leverages pricing power in its traditional tobacco segment while aggressively expanding its smoke-free and non-nicotine product portfolios, both domestically and internationally. The expected drivers of future revenue growth include:

1. Strategic Pricing in Smokeable Products: Despite ongoing declines in domestic cigarette volumes, Altria has consistently demonstrated the ability to offset these reductions through strategic price increases on its leading brands, such as Marlboro. This pricing power has been a critical factor in maintaining and growing operating income within the smokeable products segment.
2. Growth and Expansion of Oral Tobacco Products (on! brand): Altria's 'on!' nicotine pouches continue to be a significant growth engine within its oral tobacco products segment. The company is actively investing in and expanding the market presence of 'on!', including the recent launch of 'on! PLUS' in key U.S. markets such as Florida, North Carolina, and Texas. This expansion aims to capture a larger share of the growing nicotine pouch category.
3. Innovation and Market Penetration in E-Vapor Products (NJOY and Ploom): Altria's acquisition of NJOY is central to its strategy in the e-vapor market. Despite past regulatory challenges and the discontinuation of certain products like NJOY ACE, Altria plans to introduce new, compliant e-vapor alternatives and is working towards bringing heated tobacco products, such as Ploom, to the U.S. market. These efforts are expected to help recapture and expand market share in the evolving e-vapor category.
4. International Expansion of Smoke-Free Portfolio: Altria is collaborating with partners like KT&G to explore opportunities for international expansion of its smoke-free product portfolio. The company is particularly focused on commercializing its oral tobacco products, like 'on!', in international markets with proven potential, with plans for broader expansion of 'on! PLUS' in regions such as Sweden and the United Kingdom.
5. Development of Non-Nicotine Products: As part of its long-term vision, Altria is exploring and investing in non-nicotine product innovation. The company aims to achieve broad commercial distribution of at least five non-nicotine products by 2028, signaling a strategic diversification beyond traditional nicotine offerings.

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Share Repurchases

• Altria completed a $3.4 billion share repurchase program in 2024.
• The company completed a $1 billion share repurchase program in 2023.
• Altria's Board of Directors authorized a new $2 billion share repurchase program, which is expected to expire by December 31, 2026.

Outbound Investments

• In March 2023, Altria divested its entire minority economic investment in JUUL Labs, Inc. in exchange for a non-exclusive, irrevocable global license to certain of JUUL's heated tobacco intellectual property. The carrying value of this investment was $250 million as of December 31, 2022.
• Altria acquired NJOY Holdings in 2023, expanding its smoke-free product portfolio.
• In December 2022, Altria abandoned its warrant to purchase additional common shares of Cronos Group Inc., resulting in an expected capital loss of $483 million on its 2022 U.S. federal consolidated income tax return. Altria continues to hold its approximate 41% ownership interest in Cronos.

Capital Expenditures

• Altria's capital expenditures for 2024 were $142 million, and $196 million in 2023.
• The company expects its full-year 2025 capital expenditures to be between $175 million and $225 million.
• Capital expenditures are focused on maintaining and modernizing operations, and investing in new product categories, especially smoke-free and non-nicotine products.