Altria Gets New Partner On Heated Cigarettes

Marlboro-maker Altria has a new partner in its effort to bring a heat-not-burn cigarette to the US market, one week after exiting a similar deal with its sister company, Philip Morris International, Matthew Perrone reported for the Associated Press (AP).

Photo Insert: Altria, based in Richmond, Virginia, made the announcement as it reported third-quarter earnings that missed Wall Street estimates, with cigarette sales pressured by higher gas prices and inflation.

Altria said Thursday it’s launching a new venture with Japan Tobacco to commercialize cigarette alternatives developed by both companies for US smokers. The partnership’s first effort will be to win US regulatory approval for Japan Tobacco’s Ploom, a small handheld device that heats tobacco without burning it.

Altria, based in Richmond, Virginia, made the announcement as it reported third-quarter earnings that missed Wall Street estimates, with cigarette sales pressured by higher gas prices and inflation.

Ploom and other heat-based products can appeal to smokers who “have not yet found a satisfying alternative to cigarettes,” Altria CEO Billy Gifford said Thursday.

“This audience includes the millions of US adult smokers who tried, but rejected, e-vapor products.”

The company is making an initial $150 million investment in the partnership, which will do business in the US as Horizons Innovations. The deal with Japan Tobacco comes after Altria said it will sell its rights to IQOS — currently the only heated tobacco product permitted in the US — back to manufacturer Philip Morris International for $2.7 billion.

Altria spun off Philip Morris into a separate international company in 2008.

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