MO · 10-Q · 2026Q3 · Full report

Oral Tobacco Demand Weakness

ALTRIA GROUP, INC. · 2026-10-29 · Importance 49 · Surprise 32

Altria’s oral tobacco products segment domestic shipment volume fell 5.4% in the first nine months of 2026, or an estimated 5% after adjusting for trade inventory movements, as retail share losses and inventory movements outweighed category growth. Segment retail share declined 3.9 percentage points to 28.6%, primarily because of MST share declines; Copenhagen shipments fell 10.5% and Skoal shipments fell 12.5%. In the third quarter, segment shipments declined 4.3% and retail share fell 2.7 points year over year to 27.9%, including a 1.1-point sequential decline. The contrast with category growth underscores share pressure despite a growing oral nicotine market.

Key facts

• A hypothetical 1% increase in the discount rate in Altria’s 2025 annual Skoal trademark impairment test would have resulted in an approximately $90 million impairment charge. source
• Altria’s estimated Skoal trademark fair value exceeded its carrying value by approximately 7%, or $0.3 billion, at December 31, 2025. source
• For the nine months ended September 30, 2026, oral tobacco shipment volume decreased 5.4% to 522.2 million cans; on! volume increased 7.7% to 143.9 million cans. source
• For the nine months ended September 30, 2026, Copenhagen shipment volume decreased 10.5% to 245.6 million cans and Skoal volume decreased 12.5% to 84.5 million cans. source
• For the nine months ended September 30, 2026, Altria's oral tobacco segment reported domestic shipment volume decreased 5.4%; adjusted for trade inventory movements, it decreased an estimated 5%. source
• For the three months ended September 30, 2026, Altria's oral tobacco segment reported domestic shipment volume decreased 4.3%; adjusted for trade inventory movements, it decreased an estimated 5%. source
• For the nine months ended September 30, 2026, Altria's oral tobacco segment retail share was 28.6%, down 3.9 share points, primarily due to MST share declines. source
• For the three months ended September 30, 2026, Altria's oral tobacco segment retail share was 27.9%, down 2.7 share points year over year and 1.1 share points sequentially. source