Marlboro Snus Going Nationwide

Altria expects national distribution will be in place by end of March Feb. 19, 2010

RICHMOND, Va. -- Cigarette maker Altria Group Inc. says it plans to expand its Marlboro Snus smokeless tobacco nationwide as it looks to alternatives to cigarettes for future growth, according to the Associated Press. The Richmond, Va.-based owner of Philip Morris USA, which makes the top-selling Marlboro brand, began testing the product in select markets in 2007.

The company said that it expects that national distribution will be in place by the end of March.
In an effort to move beyond cigarettes, Altria and other tobacco companies have introduced a number of smokeless [image-nocss] products to keep smokers as buyers of other items. They are trying to convert smokers to products such as moist snuff, chewing tobacco and snus.

Altria chairman and CEO Michael Szymanczyk touched on the company's smokeless and other initiatives at the NACS Leadership Forum in San Francisco last week. (Click here for previous CSP Daily News coverage.)

Szymanczyk, and David R. Beran, Altria's executive vice president and chief financial officer, also participated in the Consumer Analyst Group of New York (CAGNY) conference in Boca Raton, Fla., yesterday.

They reaffirmed that Altria expects 2010 guidance for adjusted diluted earnings per share (EPS) to increase to a range of $1.85 to $1.89, representing a growth rate of 6% to 8% from an adjusted base of $1.75 per share in 2009. On a reported basis, Altria reaffirms that it expects 2010 full year reported diluted EPS to increase to a range of $1.78 to $1.82. Partially due to PM USA's federal excise tax related pricing strategies in 2009, Altria expects the first and second quarters of 2010 to be more challenging for income growth comparison purposes than the back half of 2010. Altria therefore expects adjusted EPS growth to build in the second half of the year. As a result of the challenging economic environment, Altria revised its mid-term adjusted EPS growth objective to 7% to 9%, which offers an attractive EPS and dividend growth prospect to shareholders.

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Altria directly or indirectly owns 100% of each of PM USA, U.S. Smokeless Tobacco Co. (USSTC), John Middleton Co. (Middleton), Ste. Michelle Wine Estates and Philip Morris Capital Corp. Altria holds a continuing economic and voting interest in SABMiller plc.

The brand portfolio of Altria's tobacco operating companies includes such well-known names as Marlboro, Copenhagen, Skoal and Black & Mild. Ste. Michelle produces and markets premium wines sold under 20 different labels.

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