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Can Altria's on! PLUS 12mg Rollout Accelerate Nicotine Pouch Growth?
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Key Takeaways
Altria expanded on! PLUS 12mg nicotine pouches nationwide in three flavors during the third quarter of 2026.
Nicotine pouches captured 61.2% of the oral tobacco category, gaining 5.8 percentage points year over year.
Altria's on! shipments grew 13.3% to 47.8 million cans, while its oral tobacco retail share reached 8.3%.
Altria Group, Inc. (MO - Free Report) expanded on! PLUS 12-milligram nicotine pouches nationwide in third-quarter 2026, covering mint, wintergreen and tobacco varieties. The expansion addresses growing demand for higher nicotine strengths among adult consumers. This move broadens the brand's product portfolio in the growing oral nicotine market.
The rollout comes as nicotine pouches continue gaining prominence across the oral tobacco market. In the third quarter, nicotine pouches accounted for 61.2% of the oral tobacco category, up 5.8 percentage points year over year. Higher nicotine strengths and broader flavor choices remain important drivers of category growth, creating opportunities for the expanded on! PLUS lineup.
Altria's on! brand reported shipment volume growth of 13.3% to 47.8 million cans in the third quarter. Retail share of the overall oral tobacco category reached 8.3%, increasing 0.1 percentage point year over year but declining 0.3 percentage points sequentially. The brand maintained relatively stable share despite elevated competitive spending and higher retail prices.
However, the impact of the recently introduced on! PLUS 12-milligram products on retail share has yet to become evident. The nationwide rollout also generated some pipeline inventory, although management indicated that the impact was not significant.
Meanwhile, prominent retail positioning across stores representing approximately 90% of Helix's volume supports product visibility. Nevertheless, whether the broader availability of higher-strength pouches translates into sustained retail share gains remains to be seen.
MO’s on! PLUS Faces Rising Nicotine Pouch Competition
Philip Morris International Inc. (PM - Free Report) is strengthening its U.S. nicotine pouch position through ZYN portfolio expansion. In the third quarter of 2026, ZYN shipments increased 4.2% to 3.2 billion pouches. Philip Morris expanded its higher-strength ZYN ULTRA offerings and introduced 1.5 and 8-milligram dry variants. These innovations have supported Philip Morris' competitive positioning in the growing U.S. nicotine pouch market.
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, representing 48% of total company net sales. With its chain-store count expected to rise 70% year over year by the end of 2026, Turning Point Brands is expanding retail distribution. Turning Point Brands is also investing in sales and marketing to support its Modern Oral brands.
Altria’s Price Performance, Valuation & Estimates
Shares of Altria have gained 14.3% in the past three months compared with the industry’s growth of 10.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 13.35X, down from the industry’s average of 16.90X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 4.8% and 3.4%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
Can Altria's on! PLUS 12mg Rollout Accelerate Nicotine Pouch Growth?
Key Takeaways
Altria Group, Inc. (MO - Free Report) expanded on! PLUS 12-milligram nicotine pouches nationwide in third-quarter 2026, covering mint, wintergreen and tobacco varieties. The expansion addresses growing demand for higher nicotine strengths among adult consumers. This move broadens the brand's product portfolio in the growing oral nicotine market.
The rollout comes as nicotine pouches continue gaining prominence across the oral tobacco market. In the third quarter, nicotine pouches accounted for 61.2% of the oral tobacco category, up 5.8 percentage points year over year. Higher nicotine strengths and broader flavor choices remain important drivers of category growth, creating opportunities for the expanded on! PLUS lineup.
Altria's on! brand reported shipment volume growth of 13.3% to 47.8 million cans in the third quarter. Retail share of the overall oral tobacco category reached 8.3%, increasing 0.1 percentage point year over year but declining 0.3 percentage points sequentially. The brand maintained relatively stable share despite elevated competitive spending and higher retail prices.
However, the impact of the recently introduced on! PLUS 12-milligram products on retail share has yet to become evident. The nationwide rollout also generated some pipeline inventory, although management indicated that the impact was not significant.
Meanwhile, prominent retail positioning across stores representing approximately 90% of Helix's volume supports product visibility. Nevertheless, whether the broader availability of higher-strength pouches translates into sustained retail share gains remains to be seen.
MO’s on! PLUS Faces Rising Nicotine Pouch Competition
Philip Morris International Inc. (PM - Free Report) is strengthening its U.S. nicotine pouch position through ZYN portfolio expansion. In the third quarter of 2026, ZYN shipments increased 4.2% to 3.2 billion pouches. Philip Morris expanded its higher-strength ZYN ULTRA offerings and introduced 1.5 and 8-milligram dry variants. These innovations have supported Philip Morris' competitive positioning in the growing U.S. nicotine pouch market.
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, representing 48% of total company net sales. With its chain-store count expected to rise 70% year over year by the end of 2026, Turning Point Brands is expanding retail distribution. Turning Point Brands is also investing in sales and marketing to support its Modern Oral brands.
Altria’s Price Performance, Valuation & Estimates
Shares of Altria have gained 14.3% in the past three months compared with the industry’s growth of 10.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 13.35X, down from the industry’s average of 16.90X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s 2026 and 2027 earnings implies year-over-year growth of 4.8% and 3.4%, respectively.
Altria currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.