What the changes say
- Altria faces evolving consumer preferences driving cigarette volume declines and economic pressures shifting buyers toward discount brands.
- Packaging regulations targeting single-use plastics threaten supply costs and product availability.
- The Optimize & Accelerate initiative introduces business continuity and reporting risks from outsourcing.
What changed since the prior 10-K
New
- NewBusiness Operations Risks
products. These evolving preferences have primarily resulted in domestic cigarette industry volume declines, which have negatively impacted our business
Shifting adult nicotine consumer preferences and challenging macroeconomic conditions could reduce demand for premium and discount brands if we fail to innovate.
- NewBusiness Operations Risks
finished product, raw materials and component parts and services in a timely manner or at all. If we are unable to identify alternate sources of raw materials, ingredients and component parts for our operating companies’ products, we could be exposed to supply risk
Single-use plastic bans and extended producer responsibility legislation could restrict our product packaging and increase our sourcing costs.
- NewBusiness Operations Risks
Our Optimize & Accelerate initiative may expose us to increased risks relating to business continuity and our internal control over financial reporting and audit procedures, among others, which could have a material adverse impact on our business, cash flows, financial position or results of operations
Our Optimize & Accelerate initiative may cause operational disruptions, loss of accumulated knowledge, and internal control risks from outsourcing tasks to developing countries.
Dropped
- DroppedBusiness Operations Risks
The primary impacts of these conditions include higher than expected domestic cigarette industry volume declines and declines in pod-based product volume within the e-vapor category, which have negatively impacted our business
- DroppedBusiness Operations Risks
Failure to complete or manage strategic transactions, including acquisitions, dispositions, joint ventures and investments in third parties, or realize the anticipated benefits of such transactions, could have a material adverse effect on our business, financial position and our ability to achieve our Vision
Inflationary pressures and volume declines in cigarettes and e-vapor pods.
- DroppedBusiness Operations Risks
In October 2024, we announced the multi-phase Initiative, through which we plan to increase our organization’s speed, efficiency and effectiveness by centralizing work, outsourcing certain transactional tasks and streamlining, automating and standardizing processes
- DroppedBusiness Operations Risks
protocols, backup systems and business continuity plans, maintenance of security policies and procedures, monitoring of networks and systems, and third-party risk management
- DroppedRisks Relating to Our Investments in Equity Securities
2020 and did not pay its interim 2020 dividend that would have been paid in the fourth quarter of 2020, which resulted in a reduction of cash dividends we received from ABI
Risks related to completing or managing strategic transactions and realizing their benefits.
Reworded
- 78% rewrittenBusiness Operations Risks
The failure of our, or our service providers’, key suppliers’ or trade customers’, information systems to function as intended, or cyber-attacks or security breaches, could have a material adverse effect on our business, reputation, results of operations, cash flows or financial position
Updated references from tobacco consumers to nicotine consumers and specified operating companies' products.
- 75% rewrittenBusiness Operations Risks
We may be unsuccessful in anticipating and responding to changes in adult nicotine consumer purchase behavior, including as a result of difficult economic conditions, and preferences, each of which could have a material adverse effect on our business, results of operations, cash flows or financial position
Replaced references of tobacco with nicotine, updated tobacco consumers to nicotine consumers, and added a mitigation sentence regarding industry volume decline rates.
Was: We may be unsuccessful in anticipating and responding to changes in adult tobacco consumer preferences and purchase behavior, including as a result of difficult economic conditions, which could have a material adverse effect on our business, results of operations, cash flows or financial position
- 73% rewrittenBusiness Operations Risks
We may be required to write down goodwill and other intangible assets, including trademarks and other intellectual property, due to impairment, which could have a material adverse effect on our results of operations or financial position
Removed the specific mention of recording an impairment on the Skoal trademark in the second quarter of 2024.
Was: We may be required to write down goodwill and intangible assets, including trademarks and intellectual property, due to impairment, which could have a material adverse effect on our results of operations or financial position
- 66% rewrittenBusiness Operations Risks
A challenge to our tax positions, an increase in the income tax rate or other changes to federal or state tax laws could materially adversely affect our earnings or cash flows
Added specific language regarding the availability of duty drawback for refunds on imported tobacco products.
- 66% rewrittenBusiness Operations Risks
Our inability to successfully counter the effects of illicit trade in nicotine products, including e-vapor products, could have a material adverse effect on our business, results of operations, cash flows or financial position and our ability to achieve our Vision
Changed tobacco products and tobacco consumers to nicotine products and consumers throughout the risk.
Was: Our inability to successfully counter the effects of illicit trade in tobacco products, including e-vapor products, could have a material adverse effect on our business, results of operations, cash flows or financial position and our ability to achieve our Vision
- 52% rewrittenBusiness Operations Risks
We face significant competition, including from the growth of innovative nicotine products, and our failure to compete effectively could have a material adverse effect on our business, results of operations, cash flows or financial position and our ability to achieve our Vision
Substituted tobacco references with nicotine across categories and consumer behavior descriptions.
Was: We face significant competition, and our failure to compete effectively could have a material adverse effect on our business, results of operations, cash flows or financial position and our ability to achieve our Vision
- 51% rewrittenBusiness Operations Risks
Significant changes in price, availability or quality of tobacco, other raw materials or component parts could have a material adverse effect on our profitability and business
Clarified that raw materials are used to manufacture our operating companies' products rather than just our products.
- 48% rewrittenRisks Relating to Our Investments in Equity Securities
The expected benefits of our investment in ABI may not materialize in the expected manner or timeframe or at all, which could have a material adverse impact on our financial position or earnings
Retained existing risk factors regarding the investment in ABI while maintaining equity method and currency translation details.
- 31% rewrittenBusiness Operations Risks
Nicotine products are subject to substantial taxation, and any increases in nicotine product-related taxes could have a material adverse impact on sales of our operating companies’ products
Was: Tobacco products are subject to substantial taxation, and any increases in tobacco product-related taxes could have a material adverse impact on sales of our operating companies’ products
- 30% rewrittenBusiness Operations Risks
Our performance relating to corporate responsibility matters and investor and stakeholder responses thereto may impact our reputation, ability to attract investors and the market value of our stock
- 28% rewrittenBusiness Operations Risks
Our operating companies could decide, or be required to, recall products, which could have a material adverse effect on our business, reputation, results of operations, cash flows or financial position
Was: We could decide, or be required to, recall products, which could have a material adverse effect on our business, reputation, results of operations, cash flows or financial position
- 24% rewrittenBusiness Operations Risks
Unfavorable outcomes with respect to litigation proceedings or any governmental investigations could materially adversely affect our results of operations, cash flows or financial position and our ability to achieve our Vision
- 21% rewrittenBusiness Operations Risks
Significant federal, state and local governmental actions, including FDA regulatory actions and inaction, and various private sector actions may continue to have a material adverse impact on our operating companies’ sales volumes and our business
All 23 risk factors
Headings as the filing states them, in filing order.
Business Operations Risks
- 01We may be unsuccessful in anticipating and responding to changes in adult nicotine consumer purchase behavior, including as a result of difficult economic conditions, and preferences, each of which could have a material adverse effect on our business, results of operations, cash flows or financial position75% rewritten
- 02products. These evolving preferences have primarily resulted in domestic cigarette industry volume declines, which have negatively impacted our businessNew
- 03We face significant competition, including from the growth of innovative nicotine products, and our failure to compete effectively could have a material adverse effect on our business, results of operations, cash flows or financial position and our ability to achieve our Vision52% rewritten
- 04Our inability to successfully counter the effects of illicit trade in nicotine products, including e-vapor products, could have a material adverse effect on our business, results of operations, cash flows or financial position and our ability to achieve our Vision66% rewritten
- 05Significant changes in price, availability or quality of tobacco, other raw materials or component parts could have a material adverse effect on our profitability and business51% rewritten
- 06finished product, raw materials and component parts and services in a timely manner or at all. If we are unable to identify alternate sources of raw materials, ingredients and component parts for our operating companies’ products, we could be exposed to supply riskNew
- 07We may be required to write down goodwill and other intangible assets, including trademarks and other intellectual property, due to impairment, which could have a material adverse effect on our results of operations or financial position73% rewritten
- 08Our Optimize & Accelerate initiative may expose us to increased risks relating to business continuity and our internal control over financial reporting and audit procedures, among others, which could have a material adverse impact on our business, cash flows, financial position or results of operationsNew
- 09Our operating companies could decide, or be required to, recall products, which could have a material adverse effect on our business, reputation, results of operations, cash flows or financial position28% rewritten
- 10We may be unable to attract and retain a highly skilled workforce due to the decreasing social acceptance of tobacco usage, tobacco control actions and other factors, which could have a material adverse effect on our business and our ability to achieve our Vision
- 11Unfavorable outcomes with respect to litigation proceedings or any governmental investigations could materially adversely affect our results of operations, cash flows or financial position and our ability to achieve our Vision24% rewritten
- 12Significant federal, state and local governmental actions, including FDA regulatory actions and inaction, and various private sector actions may continue to have a material adverse impact on our operating companies’ sales volumes and our business21% rewritten
- 13Nicotine products are subject to substantial taxation, and any increases in nicotine product-related taxes could have a material adverse impact on sales of our operating companies’ products31% rewritten
- 14International business operations subject us to various U.S. and foreign laws and regulations, and violations of such laws or regulations could result in reputational harm, legal challenges and significant penalties and other costs
- 15A challenge to our tax positions, an increase in the income tax rate or other changes to federal or state tax laws could materially adversely affect our earnings or cash flows66% rewritten
- 16Legal and regulatory requirements related to climate change and other environmental sustainability matters could have a material adverse impact on our business and results of operations
- 17Disruption and uncertainty in the credit and capital markets could materially adversely affect our business
- 18A downgrade or potential downgrade of our credit ratings could adversely impact our borrowing costs and access to credit and capital markets, which could materially adversely affect our financial condition
- 19Our performance relating to corporate responsibility matters and investor and stakeholder responses thereto may impact our reputation, ability to attract investors and the market value of our stock30% rewritten
- 20The failure of our, or our service providers’, key suppliers’ or trade customers’, information systems to function as intended, or cyber-attacks or security breaches, could have a material adverse effect on our business, reputation, results of operations, cash flows or financial position78% rewritten
- 21We and our service providers, key suppliers and trade customers are subject to a variety of continuously evolving and developing laws and regulations in numerous jurisdictions regarding personal data protection, privacy, artificial intelligence and information security
Risks Relating to Our Investments in Equity Securities
- 22The expected benefits of our investment in ABI may not materialize in the expected manner or timeframe or at all, which could have a material adverse impact on our financial position or earnings48% rewritten
- 23Our investment in Cronos subjects us to certain risks associated with Cronos’s business, including legal, regulatory and reputational risks
Other Altria Group 10-Ks
- FY2024 10-K risk factors25 risks
Heavy reliance on premium brands like Marlboro, Copenhagen, and Skoal creates vulnerability to macroeconomic pressures and volume declines.
Filed Feb 26, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.