Altria Reassesses 2028 Goals for Smoke-Free Products Amidst Disposable Vape Competition
Altria, the parent company of Marlboro cigarettes, has announced a review of its 2028 goals for selling smoke-free products in the U.S. market. The review comes amid increasing competition from disposable vapes, which now account for over 60% of the e-cigarette category despite lacking regulatory approval.
Altria estimates that the U.S. e-cigarette market grew by 30% in 2024, primarily driven by these "illicit disposable products." The company believes this surge has compromised its ability to achieve its 2028 smoke-free volume and revenue targets.
Altria had previously aimed to grow U.S. volumes of its smoke-free products by 35% from 2022 levels and double net revenues to $5 billion by 2028. As of 2024, the company's volumes reached 821 million units, while revenues stood at $2.8 billion.
The proliferation of unauthorized disposable vapes also threatens Altria's targets related to its NJOY vape brand and on! nicotine pouches.
In a separate development, a U.S. trade tribunal ruled in favor of Juul Labs in a patent dispute, blocking imports of certain NJOY devices and cartridges within 60 days. Altria states that it is working on a solution to address this issue.
Despite the challenges, Altria projects adjusted earnings per share of $5.22 to $5.37 for 2025, slightly below analysts' expectations of $5.35.