Philip Morris International and Altria sign manufacturing agreement contract
Philip Morris International Inc. (PMI) has entered into a contract manufacturing arrangement for combustible cigarettes with Altria operating company Philip Morris USA.
The agreement, executed through PMI's non-U.S. affiliates, leverages the combustible cigarette manufacturing capabilities and expertise of both organizations while both companies maintain their focus on smoke-free products.
READ: Altria earnings fall short amid lower cigarette sales and competition for nicotine products
What this means for retailers
The first shipments under the arrangement are expected to begin early in 2027, subject to operational readiness and applicable regulatory requirements. PMI does not expect a material impact on its 2026 financials as a result of the deal.
PMI has not commercialized combustible cigarettes in the United States and has no plans to do so, and this manufacturing deal will not change that strategy. Both PMI and Altria will continue to operate independently, maintaining full responsibility for their own commercialization, distribution and regulatory activities.
