Altria expands on! PLUS 12 mg nationwide

Altria has expanded its on! PLUS 12 milligram nicotine pouch products to national distribution across mint, wintergreen and tobacco varieties. The higher-strength format recently entered the market, and management indicated that its impact on retail share has not yet fully materialized. The company is investing in brand-building initiatives around on! PLUS and preparing additional product innovation to support the rollout.

Alongside the strength-focused expansion, Helix, Altria’s oral tobacco subsidiary, has moved to broaden the flavor range within the on! PLUS portfolio. The launch is intended to address consumer demand for higher nicotine strengths and greater flavor variety within the growing nicotine pouch category.

During the third quarter, Helix introduced Blueberry Mint and Mango Pineapple flavor extensions for on! PLUS at retail. These flavors add to the existing mint, wintergreen and tobacco varieties in the 12 mg line. Altria also announced that a Watermelon Mint flavor is scheduled to reach select retail locations in November, with further flavor innovation planned over time.

Management emphasized that flavors, along with higher nicotine levels, are key drivers of consumer adoption in the nicotine pouch segment. The company described its NICOSILK pouch technology as a differentiator for on! PLUS within this increasingly competitive market.

Helix’s reported on! shipment volume increased 13.3% in the third quarter to 47.8 million cans. Year-to-date, on! shipment volume was up 7.7%. At retail, on! held an 8.3% share of the nicotine pouch segment in the quarter, up 0.1 share point from a year earlier and down 0.3 share point sequentially.

Altria estimated that the overall oral tobacco category grew 5.5% over the last six months. Within this, the nicotine pouch category gained 5.8 share points in the third quarter and represented more than 60% of the oral category. The company has also implemented a retail trade program that secured premium in-store positioning in outlets accounting for roughly 90% of on! volume.

While on! and on! PLUS supported volume growth in nicotine pouches, overall oral tobacco financial results reflected higher investment and pressure in legacy products. Adjusted operating companies income for the oral tobacco products segment declined 3.7% in the third quarter to $443 million. Reported segment shipment volume fell 4.3% as growth in on! was more than offset by lower moist smokeless tobacco volumes.

Management indicated that category volume declines in moist smokeless tobacco are partly related to consumers shifting into nicotine pouches. Despite the segment-level pressure, Altria reported 4.8% growth in third-quarter adjusted diluted earnings per share and raised its full-year outlook, supported by its smokable products business and continued investment in nicotine pouches such as on! PLUS.