Altria Nicotine Pouch Volumes Surge: Is Helix the Real Profit Driver?

Altria Group, Inc.’s (MO) nicotine pouch business, operated through Helix Innovations, is becoming a growing driver of the company’s oral tobacco segment. As traditional oral categories decline, nicotine pouches continue to gain momentum. In the third quarter of 2025, pouches were the fastest-growing part of the segment.Helix shipped 42.2 million cans of on! in the third quarter. For the first nine months of 2025, shipments rose 14.8% to 133.6 million cans, significantly outperforming other oral tobacco categories and highlighting Helix’s expanding role in segment profitability.What stands out is Helix’s contribution to earnings quality, not just volume. Its year-over-year performance helped stabilize adjusted operating income and expand margins, even as total segment volumes declined. Helix also recently launched on! PLUS in select states, offering multiple flavors and nicotine strengths, adding a premium, differentiated option that could further boost growth.Pricing trends further highlight Helix’s position. While average nicotine pouch prices fell roughly 7% nationally, on! retail prices increased about 1.5% year over year in the third quarter. At the same time, on!’s retail share of total oral tobacco was 8.7%, unchanged sequentially and down 0.1 share point year over year, reflecting recent retail performance.Overall, Helix’s results highlight how nicotine pouches are becoming a more visible part of MO’s oral tobacco business. As traditional oral categories continue to decline, Helix’s volume performance, pricing actions, and impact on margins help shape the segment’s current operating profile.Where PM and TPB Stand Next to AltriaPhilip Morris International Inc. (PM) showed strong momentum in its modern oral portfolio in the third quarter of 2025, with global ZYN can shipments rising about 36% and U.S. ZYN offtake growing 39%, according to Nielsen estimates. Philip Morris International noted that ZYN was fully available to the trade and supported by a wide range of commercial activities, including select short-term relaunch promotions following earlier supply constraints. Philip Morris International also emphasized continued investments in capacity and commercialization to support rising demand in the nicotine pouch segment.Turning Point Brands, Inc. (TPB) delivered exceptionally strong modern oral growth in the third quarter of 2025, with segment net sales surging 627.6% year over year to $36.7 million, now representing 30.8% of the company’s revenues. Turning Point Brands highlighted sequential modern oral growth of 22% and raised its full-year modern oral sales outlook to $125-$130 million. Management also noted progress toward qualifying its first U.S. white-pouch production lines in 2026, underscoring Turning Point Brands’ growing presence in the nicotine pouch category.Altria’s Price Performance, Valuation & EstimatesShares of Altria have lost 0.8% in the past month against the industry’s growth of 1.6%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, MO trades at a forward price-to-earnings ratio of 10.36X, down from the industry’s average of 14.47X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for MO’s 2025 and 2026 earnings implies year-over-year growth of 6.3% and 2.3%, respectively.Image Source: Zacks Investment ResearchAltria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks 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 Philip Morris International Inc. (PM): Free Stock Analysis Report Turning Point Brands, Inc. (TPB): 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