Altria Group, the parent company of Philip Morris USA and the nation's largest tobacco company, reported third-quarter results Thursday that fell short of Wall Street's expectations as demand for its core cigarette business cools and illicit e-vapor products flood the market.
The Marlboro maker said its domestic cigarette shipment volume decreased 11.6%, primarily driven by wider declines across the industry and competition from illicit e-vapor products, among other factors.
In a conference call with analysts, Altria CEO Billy Gifford said the lack of regulation of illicit e-vapor products has come at the expense of legal operators and approved.
Although federal crackdowns have placed more restrictions on the flavors and marketing for tobacco products, illicit operators are skirting many tobacco-related laws and are flooding the market with disposable e-cigarettes that aren't FDA-approved and are illegal to sell.
Like many other tobacco companies, Altria is moving beyond traditional, combustible cigarettes and towards smoke-free products.
Persons:
Philip Morris, Altria, Billy Gifford, Gifford
Organizations:
Marlboro, Altria, Philip Morris USA, LSEG, Anheuser, Busch InBev, FDA, NJOY's, U.S
Locations:
San Francisco , California, Marlboro, JUUL, Juul