Altria Group, Inc. (NYSE:MO) Q3 2023 Earnings Call Transcript

Billy Gifford: We believe there is. I think when you think about it, I wouldn’t rule up menthol. We feel good about the application, the current application in front of the FDA from a menthol standpoint. I think if you look at some of the recent marketing denial orders, it was related to new following. And as we pointed out when we made the NJOY transaction, there was virtually no use following. As far as additional flavors, we’re excited and currently looking forward to being able to file in the near future, and we’ll come back to you when we are able to do that of additional flavors with access control. We believe that allows for adult consumers to have it as an off-ramp, but not an on ramp for underage users. So we still see the potential for flavors. But to answer your question, we feel like the consumer wants alternative products. We followed that previously, and they’ll continue to want that.

Jacob De Klerk: Perfect. And just a quick follow-up on your oral business. How do you kind of stop the flow of consumers moving to nicotine pouch category? I know you’ve got the on! brand there. But is this a structural shift you’re seeing away from the traditional oral business to the nicotine pouches?

Billy Gifford: That certainly is the biggest outflow or inflow into nicotine pouches is coming from traditional MST consumers. Our plans there, and we highlighted them is participate with on!. And then we’re excited to be able to file the PMTA for on! PLUS. And we highlighted while it’s early, some of the consumer engagement that we’re having over in Sweden, and we feel like that’s a great product, and we’re looking forward to be able to bring that to market once we receive authorization.

Jacob De Klerk: Thank you.

Operator: And there appears to be no further questions at this time. I would like to turn the call back over to Mac Livingston for any closing remarks.

End of Q&A:

Mac Livingston: Thanks Ashley. Thanks to all for joining us. Please contact the Investor Relations team if you have further questions. Thanks, and have a great day.

Operator: Thank you, and this concludes today’s call. Thank you for your participation. You may disconnect at any time.