Altria Surprises With Its Latest Reduced-Risk Move – Motley Fool

Cigarette smoking has been on the decline for decades, and tobacco giant Altria Group (NYSE:MO) has had to balance its pricing power against adverse long-term volume trends to try to maximize profits even as revenue growth has been somewhat under pressure. In place of traditional cigarettes, consumers have increasingly moved toward alternatives like e-cigarettes and vaping products, and even the largest players in the tobacco space have made efforts to fill in their product lines with newer offerings designed to capitalize on that demand.

To allow for consideration of such strategic moves from the tobacco industry, the U.S. Food and Drug Administration began accepting applications to have modified risk tobacco products approved by the regulatory agency. Companies in the industry have responded by submitting applications for items like e-cigarettes and heated-tobacco products, hoping that their claims of more favorable health impacts will earn them approval. Yet late last month, Altria submitted an FDA application for a product that’s been around for a long time: smokeless tobacco.

Image source: Altria.

What Altria did

On March 20, Altria said that its U.S.

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