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Altria

American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products.

Categories

Retail and Consumer Goods  

#187

Rank

$90.62B

Marketcap

US United States

Country

Altria
Leadership team

Philip Morris (Founder)

Debra J. Kelly-Ennis (Board Member)

Industries

Retail and Consumer Goods

Products/ Services
Cigarettes
Number of Employees
1,000 - 20,000
Headquarters
Richmond, Virginia, U.S.
Established
1985
Company Type
Public Limited Company
Company Registration
SEC CIK number: 0000764180
Net Income
1B - 20B
Revenue
Above - 1B
Traded as
MO
Social Media
Overview
Location
Summary

Altria Group, Inc., previously known as Philip Morris Companies, Inc., is a prominent American corporation that holds a leading position in the tobacco industry globally. With its headquarters located in Henrico County, Virginia, just outside Richmond, Altria operates on a worldwide scale, manufacturing and marketing tobacco, cigarettes, and related products.

Altria's portfolio comprises a range of tobacco companies that have held undisputed market leadership in the U.S. for many decades. These companies include Philip Morris USA, renowned for its iconic Marlboro cigarettes, and John Middleton, Inc., a manufacturer of Black & Mild cigars. In the smoke-free category, Altria owns the U.S. Smokeless Tobacco Company, the producer of Copenhagen and Skoal smokeless tobacco products, as well as Helix Innovations, which manufactures oral nicotine pouches.

Furthermore, Altria has a majority-owned joint venture with JT Group called Horizon Innovations. This venture focuses on the marketing and commercialization of heated tobacco stick products in the U.S. Additionally, Altria holds exclusive U.S. commercialization rights to the IQOS* Tobacco Heating System® and Marlboro HeatSticks® through April 2024 through a separate agreement with Philip Morris International.

Altria's equity investments include substantial minority stakes in Anheuser-Busch InBev SA/NV, the largest brewer in the world, and Cronos Group, a leading Canadian cannabinoid company.

As a corporation, Altria is listed as a component of the S&P 500 and was previously included in the Dow Jones Industrial Average from 1985 to 2008. It was removed from the index due to the spin-offs of Kraft Foods Inc. in 2007 and Philip Morris International in 2008, focusing the company's operations more squarely on the U.S. market.

History

Altria Group, Inc is one of the world’s largest producers and marketers of tobacco, cigarettes, and related products. Founded as Philip Morris & Co. Ltd. in 1847, Altria Group, Inc has a long and storied history that has seen the company become a leader in the tobacco and smoking products industry.

The company was started by a London-based tobacconist and cigarette manufacturer named Philip Morris. Morris had the vision to make cigarettes and other tobacco products more widely available and affordable, and the company quickly grew in popularity and success. By the early 1900s, Morris’s company had become the largest cigarette manufacturer in the world.

In 1919, the company changed its name to Philip Morris & Co. Ltd. and began to diversify its portfolio of products and services. Over the next several decades, the company continued to grow and expand, and by 1979, the company had become the largest tobacco company in the world. In 1985, the company changed its name to Altria Group, Inc., and the company continues to be a major player in the tobacco and smoking products industry.

In 1999 it purchased all rights to the Liggett cigarette brands L&M, Chesterfield, and Lark. In 2003 Altria was ranked Fortune number 11 and has steadily declined since. In 2007, Altria began selling all its shares of Philip Morris International to Altria stockholders. In 2009, Altria finalized its purchase of UST Inc., whose products included smokeless tobacco (made by United States Smokeless Tobacco Company) and wine (made by Chateau Ste.)

In 2010 Altria Group (MO) ranked at Fortune number 137, whereas its former asset, Philip Morris International was ranked 94th. On December 8, 2018, Altria announced its intent to acquire a 45% stake in Cronos Group for $1.8 billion. On November 3, 2019, it was reported that Altria was taking a $4.5 billion write-down on its stake in Juul, 35% of its original value.

Today, Altria Group, Inc. is the parent company to a number of subsidiaries, including Philip Morris USA, U.S. Smokeless Tobacco Company, and John Middleton Co. It also owns a stake in two major beer companies, SABMiller and Anheuser-Busch InBev. Altria Group, Inc. is a publicly traded company, and its stock is listed on the New York Stock Exchange under the ticker symbol MO.

Mission

Altria's mission statement revolves around owning and developing financially disciplined businesses that excel in responsibly catering to the needs of adult tobacco consumers with exceptional branded products. As part of this mission, Altria is actively involved in driving a shift away from traditional cigarettes and towards potentially less harmful alternatives, thus embracing its initiative of Moving Beyond Smoking™.

By acknowledging the need for evolution and adaptation, Altria remains committed to continuous business innovation and sustained disciplined growth. With a rich history spanning over 150 years, the company strives to stay at the forefront of industry advancements and actively contribute to the well-being of adult smokers by providing them with a range of superior choices.

Through this mission, Altria seeks to serve its stakeholders by delivering value, driving responsible business practices, and positioning itself as a leader in the tobacco industry's transformation. By prioritizing the development of innovative products and promoting responsible consumption, Altria aims to create a positive impact and contribute to the well-being of adult tobacco consumers.

Vision

Altria's vision for the future, as stated by the company, is to responsibly lead the transition of adult smokers to a smoke-free future by the year 2030. To achieve this vision, Altria has outlined several strategic goals and commitments:

Operating Responsibly and Preventing Underage Use: Altria aims to be an industry leader in responsible operations and actively workss towards preventing the underage use of its adult products. The company recognizes the importance of upholding strict standards to ensure the appropriate use of its products.

Delivering Innovative Smoke-Free Products: Altria is committed to delivering a portfolio of innovative smoke-free products that have received authorization from the U.S. Food and Drug Administration (FDA). These products offer potentially reduced-risk alternatives to traditional combustible cigarettes, and Altria aims to facilitate the equitable transition of adult smokers to these alternatives.

Balancing Investments and Profitability: While focusing on maximizing the profitability of its combustible products, particularly the iconic Marlboro brand, Altria also recognizes the importance of allocating resources to fund the growth of its smoke-free portfolio. This balanced approach ensures the company's commitment to meeting the evolving preferences of adult tobacco consumers.

Investing in Manufacturing and Employees: Altria aims to invest in its manufacturing employees and facilities, positioning them as the preferred manufacturers for all current and future tobacco products in its portfolio. By enhancing capabilities and maintaining high manufacturing standards, Altria strives to ensure the quality and integrity of its products.

Leadership in External Environment: Altria aims to take a leadership position in the external environment by engaging in effective communications, meaningful stakeholder engagement, and advocating for science-based policy and regulatory solutions. By actively participating in shaping the industry's future, Altria seeks to drive positive change.

Employee Capabilities and Evolution: Altria emphasizes building employee capabilities to accelerate progress towards its vision. The company recognizes that its success depends on the skills and dedication of its workforce. Altria aims to foster a culture of continuous improvement and evolve the way employees work and behave to drive positive outcomes.

Cronos Group Leadership: As a major investor in Cronos Group, a leading Canadian cannabinoid company, Altria aims to help position Cronos as a leader in a highly responsible, regulated, and legalized U.S. cannabis market. Altria recognizes the potential of this emerging market and seeks to maximize the value of its investments.

By pursuing these strategic goals, Altria aims to maximize the long-term value of its investments while responsibly leading the transition of adult smokers to a smoke-free future. The company envisions a future where reduced-risk alternatives play a significant role in meeting the evolving preferences of adult tobacco consumers.

Key Team

Charles N. Whitaker (Sr. VP)

Kathryn B. McQuade (Chairman)

William Leo Kiely (Board Member)

Dinyar Devitre (Former Chief Financial Officer)

George Muñoz (Board Member)

Ellen R. Strahlman (Board Member)

Howard Willard III (Board Member)

Ian Leigh Theodore Clarke (Board Member)

Jody L. Begley (EVP and COO)

Recognition and Awards
Fortune 500 - Altria Group, Inc. has also received recognition for its leadership in the tobacco industry. The company was named one of the top tobacco companies in the world by Euromonitor International in 2017 and was also named one of the most admired companies in the industry by Fortune Magazine. Additionally, Altria Group, Inc. was listed among the World's Most Admired Companies by Forbes in 2018.
Products and Services

Altria offers a range of products and services as it strives to lead the way in transitioning adult smokers to potentially less harmful choices and a smoke-free future. Here is an overview of the company's main operating companies, joint ventures, service companies, and strategic investments:

Operating Companies: 

- Philip Morris USA: As the leading tobacco company in the United States, Philip Morris USA is responsible for manufacturing and marketing some of the most well-known cigarette brands, including Marlboro, one of the world's most recognized cigarette brands. 

- U.S. Smokeless Tobacco Company: This company specializes in smokeless tobacco products, including popular brands such as Copenhagen and Skoal. Smokeless tobacco provides an alternative to traditional cigarette smoking. 

- John Middleton: Known for its premium cigars and pipe tobacco products, John Middleton offers brands like Black & Mild, which has become a staple in the cigar market. 

- Helix Innovations: Altria's portfolio includes Helix Innovations, which focuses on developing and manufacturing on! oral nicotine pouches, offering another potentially reduced-risk alternative for adult tobacco consumers.

Joint Venture: Altria has a majority-owned joint venture with JT Group called Horizon Innovations. This partnership aims to market and commercialize heated tobacco stick products in the United States. These innovative products offer an alternative way of consuming tobacco with potentially reduced harm compared to traditional cigarettes. Altria also works with various service companies to support its operations and enhance its offerings, ensuring high-quality products and services for its customers.

Strategic Investments: Altria has made strategic investments in companies operating in related industries, expanding its presence beyond traditional tobacco products. These investments include: 

- Anheuser-Busch InBev SA/NV: Altria holds a significant equity stake in Anheuser-Busch InBev, the world's largest brewer. This investment reflects Altria's diversification into the beverage sector.

- Cronos Group: Altria has invested in Cronos Group, a leading Canadian cannabinoid company. This investment positions Altria to participate in the emerging and regulated U.S. cannabis market.

Altria's commitment to understanding changing consumer preferences and societal views toward tobacco, combined with its focus on innovation and disciplined growth, drives its mission to responsibly lead the transition of adult smokers to a smoke-free future. Through its diverse range of products, joint ventures, service companies, and strategic investments, Altria aims to provide adult tobacco consumers with a variety of choices and potential reduced-risk alternatives.

References
Altria
Leadership team

Philip Morris (Founder)

Debra J. Kelly-Ennis (Board Member)

Industries

Retail and Consumer Goods

Products/ Services
Cigarettes
Number of Employees
1,000 - 20,000
Headquarters
Richmond, Virginia, U.S.
Established
1985
Company Type
Public Limited Company
Company Registration
SEC CIK number: 0000764180
Net Income
1B - 20B
Revenue
Above - 1B
Traded as
MO
Social Media