Altria Group

History

2023: NJOY Holding Purchase

In early March 2023, Altria, one of the world's largest tobacco companies, [[|]] announced the purchase of e-cigarette manufacturer NJOY Holdings for $2.75 billion. Through the deal, Altria's product portfolio will include three categories of smokeless tobacco technology from NJOY Holdings. Altria will also take ownership of a joint venture between NJOY Holdings and JT Group to commercialize heated tobacco sticks in the United States. NJOY Holdings is developing products that will be an alternative to traditional cigarettes. These products contain nicotine, have a rich taste and give the aroma familiar to smokers, but do not produce smoke. Read more here.

2021: Sycamore Partners Management bought the wine business from Altria Group for $1.2 billion

In July 2021, Altria Group, known for the production of cigarettes, sold the wine business for $1.2 billion to the investment company Sycamore Partners Management in connection with the reduction of its non-tobacco assets.

The private investment company will pay $1.2 billion in cash, along with taking on a number of obligations of the Ste wine company acquired by it. Michelle. The deal is expected to be struck in the second half of this year after receiving approval from the U.S. Antitrust Authority.

Sycamore Partners Management acquires wine business from Altria Group for $1.2bn

The deal comes as more and more people quit smoking in developed countries. The company's CEO, Billy Gifford, said the sale of the wine business would help the company "focus more on realizing the vision to transition smokers to a smoke-free future."

Like many large tobacco companies, Altria is also taking steps to expand the market for low-health risk tobacco products. In this regard, it is worth mentioning the agreement on marketing and technology sharing between Altria and Philip Morris International related to the implementation of IQOS in the United States.

The company is also looking to expand the market for oral tobacco products. Through its subsidiary Helix Innovations, Altria secured 100% ownership of on! a popular packaged nicotine-containing tobacco-based article. Management believes that on! is a useful addition to Altria's non-combustible tobacco product portfolio, as oral nicotine-containing tobacco-based products are gaining popularity in the US due to their low health risk. Amid the emphasis on the tobacco business, selling the wine division looks like a logical step for Altria.^[1]

Ste Company. Michelle, which sells wine from estates in Washington state, Napa Valley and other parts of the United States, became part of Altria when it acquired non-combustible tobacco products company UST for $10.4 billion in 2008. Surplus wine stocks and decreased consumer demand led to a one-time write-off of losses of $292 million in its wine division in the first quarter of 2020. According to Altria's financial statements notes, the company made an additional write-off of $100 million from its accounts, taking into account estimated losses related to "future irrevocable obligations to purchase grapes."

Notes