Altria Group Inc. announced two new tobacco products at its annual investor day on March 24: Swic and On Plus.
It will be some time, however, before retailers can get their hands on the products.
Swic is a heated tobacco product in which tobacco-filled capsules are heated to a precise temperature to deliver an inhale similar to a cigarette, Jody Begley, executive vice president and chief operating officer at Altria, said. Each capsule is single use and lasts for one tobacco occasion.
The product caters to adult smokers who are interested in heated tobacco products that bear less physical resemblance to traditional cigarettes, including smokers who have tried and rejected e-vapor products, he said.
“Our regulatory sciences team conducted research on product concepts and marketing materials to evaluate interest in Swic,” Begley said. “We found that smokers showed interest in trying and using Swic, and this interest was even greater among smokers who viewed the promotional materials. And importantly, intentions to try and use the product among non-tobacco consumers were low and statistically did not change after viewing the materials.”
Regarding a timeline for releasing Swic, Altria said the product was still in development, and it’s possible that the company will release it and On Plus internationally before launching in the United States, where it would have to go through the Food and Drug Administration’s (FDA) premarket tobacco product application (PMTA) process before hitting the market.
On Plus is a wet, spit-free tobacco-derived nicotine pouch that is an extension of Altria’s existing modern oral nicotine (MON) line On. The company designed On Plus for dippers and dual users, Begley said, with an optimized, long-lasting flavor system and range of nicotine strengths. On Plus comes in Mint, Tobacco and Wintergreen flavors in nicotine strengths of 6, 9 and 12 milligrams.
On Plus pouches are larger than other like products on the U.S. market, he said, and its seamless pouches are made of Altria’s proprietary “soft-feel” material for a more comfortable experience. Also, like the current On packaging, the On Plus can features a compartment to dispose of used product. Altria expects to file a PMTA for On Plus in 2024.
This new portfolio of smokeless tobacco products—which also includes Njoy e-cigarettes, Copenhagen snuff and Ploom heated tobacco sticks—will help Altria reach two goals, Begley said. Altria aims to grow total U.S. smoke-free volumes by at least 35% from its 2022 base of 800 million units. Its second goal is to approximately double its total U.S. smoke-free net revenues to $5 billion over the same time, with $2 billion coming from smoke-free products.
“These goals are ambitious for the U.S. market, but we believe we have the right plans in place to make them a reality,” Begley said.
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