The Reduced-Risk Portfolio: What Each Major Company Is Betting On
PMI is betting on heated tobacco and pouches. BAT is spreading across vaping, pouches, and heated tobacco. Altria is placing multiple bets. Each company's reduced-risk portfolio reflects a different theory of what will replace cigarettes.
PMI's bet: IQOS (heated tobacco) plus ZYN (nicotine pouches). The theory: smokers want alternatives that are satisfying (heated tobacco) or discreet (pouches). BAT's bet: Vuse (vaping), Velo (pouches), glo (heated tobacco). The theory: diversify across categories and let the market decide. Altria's bet: on! (pouches), NJOY (vaping). The theory: acquire proven products rather than develop from scratch. **Each strategy reflects a different theory of the post-cigarette future. The strategies will be tested in the market over the next decade.**
