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Altria 'smoke-free' targets under threat from illicit vapes
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Altria 'smoke-free' targets under threat from illicit vapes
Jan 30, 2025 5:51 AM

LONDON (Reuters) - Altria ( MO ), the maker of Marlboro cigarettes, has placed under review its 2028 goals for selling alternatives to smoking on the U.S. market, saying on Thursday it may not be able to meet them because of competition from disposable vapes.

Altria ( MO ) estimated the U.S. e-cigarette market grew 30% in 2024, driven mostly by "illicit disposable products" that represent 60% or more of the category even though they lack the required regulatory authorisations.

"We believe this dynamic compromises our ability to achieve our 2028 smoke-free volume and revenue goals," the company said in its full-year results statement on Thursday, adding it was re-assessing them as a result.

It would update the goals when there was more "clarity on how the legitimate e-vapor market may evolve".

The company, which is trying to diversify from cigarettes as price- and health-conscious U.S. smokers switch to alternatives, had aimed to grow U.S. volumes from its "smoke-free" products by 35% from its 2022 level of 800 million units by 2028.

It also aimed to double net revenues from such products to $5 billion over the same period.

Its volumes stood at 821 million units in 2024, while revenues were $2.8 billion.

The company said widespread trade in unauthorised disposable vapes also jeopardised targets related to its vape brand NJOY, which alongside nicotine pouch brand on! is central to its portfolio of non-tobacco products.

Separately, a U.S. trade tribunal on Wednesday sided with rival Juul Labs in a patent dispute, ordering a block on imports of some NJOY devices and cartridges that is scheduled to take effect in 60 days.

Altria ( MO ) said on Thursday it continued to work on a product solution that addresses the patent issue.

On Thursday, the company forecast 2025 adjusted earnings per share of between $5.22 and $5.37, compared to analyst expectations of $5.35, as per data compiled by LSEG.

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