Altria Expands Growth Avenues With Global KT&G Partnership

Altria Group, Inc. (MO) has entered into a global memorandum of understanding ("MOU") with KT&G Corporation (KT&G), a leading South Korean tobacco and consumer goods company. The agreement lays the groundwork for collaboration in oral nicotine, wellness products and efficiency improvements in traditional tobacco operations.This partnership is a strategic move for both companies. It helps Altria build new revenue streams beyond the core cigarette business, while enabling KT&G to expand the global reach by leveraging the former’s extensive distribution network and market knowledge.Altria Expands Into New Categories and Efficiency GainsThe companies plan to grow global demand for pouch products, including Altria’s on! and on! PLUS brands. As part of this effort, Altria’s subsidiary will purchase an ownership interest in Another Snus Factory Stockholm AB (“ASF”), a Nordic-based maker of LOOP pouches, concurrent with KT&G’s acquisition of it.Through KT&G’s Korea Ginseng Corporation (“KGC”), the partners will assess ways to enter the U.S. energy and wellness market. The initiative is expected to combine KGC’s heritage in ginseng and wellness products with Altria’s established retail presence and consumer insights in the U.S. market.In addition to new product categories, Altria and KT&G will share best practices to improve efficiency in cigarette manufacturing and supply chains, strengthening competitiveness in their respective home markets. These operational insights may also support international nicotine product growth.Overall, the collaboration positions Altria to accelerate its expansion into smoke-free nicotine and wellness products, while giving KT&G a pathway to broaden global portfolio beyond traditional cigarettes.What More Should Investors Know About MO?Altria continues to rely on its pricing strength to navigate soft cigarette volumes and a challenging consumer environment. In the second quarter of 2025, the smokeable products segment saw net price realization of 10%. This drove adjusted operating income up 4.2% and expanded margins by 290 basis points to 64.5%, highlighting the company’s ability to maintain profitability through disciplined pricing.Altria’s smokeable products segment continues to maintain market leadership. Marlboro, the company’s flagship brand, expanded its share in the premium category to 59.5%, reflecting effective brand management and consumer loyalty. This resilience demonstrates the company’s ability to defend its core portfolio even as overall cigarette volumes decline, supporting steady cash flow and long-term competitiveness in a challenging market.The on! nicotine pouch brand remains a key growth driver for Altria’s oral tobacco segment. Shipments rose 26.5% in the second quarter to 52.1 million cans. Supported by marketing campaigns and strategic brand activations, the oral tobacco segment’s adjusted operating income increased 10.9%, with margins expanding 310 basis points to 68.7%, underscoring progress in building a strong smoke-free portfolio.Image Source: Zacks Investment ResearchNonetheless, the core combustible business faces significant pressure. Domestic cigarette shipments decreased 10.2% in the second quarter, reflecting ongoing declines across the industry. Rising competition from flavored disposable e-vapor products further challenges traditional volumes. Sustained growth will depend on Altria’s ability to expand smoke-free alternatives while defending its combustible portfolio, balancing near-term performance with long-term strategic transformation.In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 10.1% against the industry’s decline of 1.2%.Stocks to ConsiderCelsius Holdings, Inc. (CELH) develops, processes, manufactures, markets, sells and distributes functional energy drinks. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings indicates growth of 77.7% and 54.3%, respectively, from the prior-year levels. CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average. The Chefs' Warehouse, Inc. (CHEF) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently flaunts a Zacks Rank of 1. CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.6% and 19.1%, respectively, from the prior-year levels. Laird Superfood, Inc. (LSF) manufactures and markets plant-based, natural and functional food in the United States. It has a Zacks Rank #2 (Buy) at present. LSF delivered a trailing four-quarter earnings surprise of 11.3%, on average. The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and earnings indicates growth of 21% and 23.8%, respectively, from the prior-year levels.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Altria Group, Inc. (MO): Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report Celsius Holdings Inc. (CELH): Free Stock Analysis Report Laird Superfood, Inc. (LSF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks