PMI and Altria Agree to Manufacturing Collaboration

Altria Group, Inc. and its affiliate, Philip Morris USA Inc. (PM USA), have entered into a contract manufacturing arrangement with non-U.S. affiliates of Philip Morris International Inc. (PMI) that is intended to “enhance the efficiency of PM USA’s traditional tobacco product operations,” Altria said in a press release.

PMI said the collaboration is expected to leverage the respective combustible cigarette manufacturing capabilities and expertise of both organizations while they continue to focus on delivering a smoke-free future.

“The first shipments as part of the arrangement are expected to begin early in 2027, subject to operational readiness and applicable regulatory requirements. We do not expect a material impact from this arrangement on our 2026 financials,” PMI said.

Altria and PMI will continue to operate independently and maintain responsibility for their own commercialization, distribution and regulatory activities.

“The arrangement supports our 2028 Enterprise Goals by enhancing operational capabilities, generating economic benefits to support investment in our Vision and strengthening capabilities that could be transferable to our international nicotine efforts. We do not expect this arrangement will have a material impact on our 2026 financial results,” Altria said.

PMI also said it has not commercialized combustible cigarettes in the United States and has no plans to do so.

In an article, Reuters cited a U.S. tax rebate as one possible motivation for the agreement.