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Is Altria's on! PLUS Shaping Up as Its Next Major Growth Engine?
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Key Takeaways
Altria's on! PLUS drove a sequential retail share gain as nicotine pouches expanded their category presence.
on! PLUS reached about 120,000 stores, while early repeat purchase rates were encouraging.
New strengths and flavors are planned for the second half of 2026, broadening the on! PLUS portfolio.
Altria Group, Inc.’s (MO - Free Report) on! PLUS is gaining early traction within its oral nicotine portfolio as the U.S. nicotine pouch category expands. In the second quarter of 2026, nicotine pouches represented 59.9% of the oral tobacco category, up 8.1 share points year over year. on! retail share reached 8.6%, rising 0.8 share points sequentially and 0.3 points from a year earlier, with the sequential increase driven by on! PLUS.
The product has also gained broad retail reach. Helix expanded on! PLUS to about 120,000 stores nationwide. Early data indicated that the product was resonating with existing on! users and consumers of competing nicotine pouch brands. Repeat purchase rates were encouraging, suggesting consumers valued the differentiated experience of the NICOSILK soft pouch. A new retail trade program also secured premium visibility and incremental fixture space for the product.
on! shipments were 49.9 million cans in the second quarter, down 4.2% due to trade inventory movements. However, first-half shipments increased 5.1%, reflecting the early impact of the on! PLUS national expansion.
The portfolio is set to broaden further. The 12-milligram version is planned for national expansion in the third quarter, while Blueberry Mint and Mango Pineapple extensions across 6, 9 and 12-milligram strengths are scheduled to begin in the fourth quarter. These additions will expand the on! PLUS offering, while introductory trial investments continue to accompany the rollout.
Philip Morris International Inc. (PM - Free Report) is strengthening its U.S. nicotine pouch position through ZYN. In the second quarter of 2026, ZYN shipments rose 1.8% to 2.9 billion pouches, while offtake was flat to slightly higher year over year. Philip Morris also launched 9 and 11-milligram ZYN ULTRA moist variants. In the third quarter, Philip Morris plans 1.5- and 8-milligram dry variants and higher U.S. investment.
Turning Point Brands, Inc. (TPB - Free Report) is also building momentum in nicotine pouches through FRE and ALP. In the second quarter of 2026, Modern Oral net sales surged 128% to $68.4 million and represented 48% of total company net sales. Turning Point Brands is expanding retail distribution, with chain-store count expected to rise 70% year over year by 2026-end. To support its Modern Oral brands, Turning Point Brands is also investing in sales and marketing.
Altria’s Price Performance, Valuation & Estimates
Shares of Altria have fallen 1.1% in the past three months against the industry’s growth of 6.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.83X, down from the industry’s average of 15.40X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 4.6% and 3%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
Is Altria's on! PLUS Shaping Up as Its Next Major Growth Engine?
Key Takeaways
Altria Group, Inc.’s (MO - Free Report) on! PLUS is gaining early traction within its oral nicotine portfolio as the U.S. nicotine pouch category expands. In the second quarter of 2026, nicotine pouches represented 59.9% of the oral tobacco category, up 8.1 share points year over year. on! retail share reached 8.6%, rising 0.8 share points sequentially and 0.3 points from a year earlier, with the sequential increase driven by on! PLUS.
The product has also gained broad retail reach. Helix expanded on! PLUS to about 120,000 stores nationwide. Early data indicated that the product was resonating with existing on! users and consumers of competing nicotine pouch brands. Repeat purchase rates were encouraging, suggesting consumers valued the differentiated experience of the NICOSILK soft pouch. A new retail trade program also secured premium visibility and incremental fixture space for the product.
on! shipments were 49.9 million cans in the second quarter, down 4.2% due to trade inventory movements. However, first-half shipments increased 5.1%, reflecting the early impact of the on! PLUS national expansion.
The portfolio is set to broaden further. The 12-milligram version is planned for national expansion in the third quarter, while Blueberry Mint and Mango Pineapple extensions across 6, 9 and 12-milligram strengths are scheduled to begin in the fourth quarter. These additions will expand the on! PLUS offering, while introductory trial investments continue to accompany the rollout.
MO’s Nicotine Pouch Momentum Faces Growing Peer Competition
Philip Morris International Inc. (PM - Free Report) is strengthening its U.S. nicotine pouch position through ZYN. In the second quarter of 2026, ZYN shipments rose 1.8% to 2.9 billion pouches, while offtake was flat to slightly higher year over year. Philip Morris also launched 9 and 11-milligram ZYN ULTRA moist variants. In the third quarter, Philip Morris plans 1.5- and 8-milligram dry variants and higher U.S. investment.
Turning Point Brands, Inc. (TPB - Free Report) is also building momentum in nicotine pouches through FRE and ALP. In the second quarter of 2026, Modern Oral net sales surged 128% to $68.4 million and represented 48% of total company net sales. Turning Point Brands is expanding retail distribution, with chain-store count expected to rise 70% year over year by 2026-end. To support its Modern Oral brands, Turning Point Brands is also investing in sales and marketing.
Altria’s Price Performance, Valuation & Estimates
Shares of Altria have fallen 1.1% in the past three months against the industry’s growth of 6.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.83X, down from the industry’s average of 15.40X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 4.6% and 3%, respectively.
Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.