Altria Group enters non-binding global collaboration MOU with KT&G Corporation

Altria Group (MO) announced that it has entered into a non-binding global collaboration memorandum of understanding with KT&G Corporation in the joint pursuit of long-term growth opportunities with modern oral nicotine products, non-nicotine products and operating efficiency in traditional tobacco. Altria and KT&G will explore opportunities to collaborate and, when appropriate, contribute their respective resources and capabilities to expand the global demand for nicotine pouch products. These efforts may include the expansion of the on! and on! Plus product portfolio to select countries, and/or strategic transactions in the modern oral space. As an initial step in this exploration, an Altria subsidiary signed a definitive agreement with KT&G whereby, concurrent with KT&G’s acquisition of Another Snus Factory Stockholm, a Nordic-based nicotine pouch company, Altria’s subsidiary will acquire an ownership interest in ASF. ASF owns the LOOP brand internationally. An Altria subsidiary and KT&G’s subsidiary, Korea Ginseng Corporation, will jointly explore opportunities in the U.S. with a focus in the growing energy and wellness segment. In addition to the focus on innovative nicotine and non-nicotine products, Altria and KT&G have agreed to jointly pursue ways to optimize operating processes for traditional tobacco products to benefit the competitiveness of each company in their respective home regions.