As the largest tobacco company in the U.S. with leading brands like Marlboro, its strong pricing power and product mix continue to be the key sources of value creation. The cigarettes segment contributes to more than three-fourths of Altria’s stock value.
Faced with cigarettes sales volume decline, especially following the 158% increase in the federal excise tax in April 2009 that resulted in significant industry volume contraction, Altria has announced the new cost reduction program primarily focusing on cigarette-related infrastructure costs.
