Altria Group, Inc. · NYSE:MO
Altria — ENDS Conference 2018
19 slides from Altria's conference presentation, Dec 6, 2018
Slide 1: ENDS Flavors: Their Role in Initial Liking at Trial, Preference Formation, and Switching
ENDS Flavors: Their Role in Initial Liking at Trial, Preference Formation, and Switching Andrea Rae Vansickel, Ph.D. December 6th, 2018 ENDS Conference Altria Client Services l CMI | ENDS Conference l 12/06/2018 l FINAL | 1
Slide 2: Tobacco Harm Reduction at Altria
Tobacco Harm Reduction at Altria Supporting Developing & Communicating Help Reduce Cessation Marketing about the health Underage Lower-Risk effects of Tobacco Use Tobacco tobacco use Products We aspire to be the U.S. leader in authorized, non- combustible, reduced-risk products Altria Client Service
Slide 3: Product Platforms
Product Platforms Oral Tobacco/ Heated Tobacco E-Vapor/ENDS Nicotine Products Products Altria Client Services l CMI | ENDS Conference l 12/06/2018 l FINAL | 3
Slide 4: Existing Literature: What do we know?
Existing Literature: What do we know? 1. Flavors may play an important role in continued e-vapor use after trial and non-tobacco flavors may play a pivotal role in aiding transitions from smoking to vaping. (e.g. Audrain- McGovern, Strasser, Wileyto 2016; Barbeau, Burba and Siegel 2013; Czoli et al.
Slide 5: MarkTen Actual Use Study
MarkTen® Actual Use Study* Research Question: What role, if any, do flavor options play in switching behavior associated with MarkTen®? We conducted an 8-week, 2-phase, actual use study with 614 adult cigarette smokers not planning to quit We characterized MarkTen® (M10) e-vapor use behavior and
Slide 6: Key Findings
Key Findings 1. All 14 flavors: • were needed to meet participant preferences a at trial and • were used b during the 6-week phase 2. Flavor preferences changed and participants’ consideration sets narrowed over time 3. Participants that switched generally used more flavor varieties 4. Greater flavo
Slide 7: Actual Use Study: Sample Disposition
Actual Use Study: Sample Disposition Lost to follow up: Did not return, even after re-contact Product-related: Did not use during trial or did not score > 3 on intentions to use Noncompliant: Missed 5 or more daily surveys in a row or missed > 2 Day 7 surveys Altria Client Services l CMI | ENDS Conf
Slide 8: Actual Use Study: Overview
Actual Use Study: Overview • > 3 Intentions to Try > 3 Intentions to Use • No plans to quit smoking in next 3 months Altria Client Services l CMI | ENDS Conference l 12/06/2018 l FINAL | 8
Slide 9: Actual Use Study: Strengths and Limitations
Actual Use Study: Strengths and Limitations Strengths: Near Real World Conditions (inclusion of individuals that would be likely to try and use product in market, open-access to flavor portfolio, at-home use, self-determined usage levels) Daily data capture of all tobacco use Robust sample Lim
Slide 10: Participants Reduced Cigarette Smoking Behavior
Participants Reduced Cigarette Smoking Behavior Distribution of Change* in Cigarette Use Per Week (Total Sample) % No Cigarettes % Decrease (20%+) % Stay the same 60.0 52.28 % Increase (20%+) 50.0 42.67 40.0 Percentage 41.86 30.0 19.54 20.0 18.24 9.93 10.0 9.93 5.54 0.0 Week 1 Week 2 Week 1 Week 2 W
Slide 11: 14 Flavors Were Needed to Meet Preferences During Trial
14 Flavors Were Needed to Meet Preferences* During Trial Total Unduplicated Reach and Frequency Analysis (TURF) Top Liking Rating (7-point) during Phase 1 *based on highest rating of liking Altria Client Services l CMI | ENDS Conference l 12/06/2018 l FINAL | 11
Slide 12: 14 Flavors Were Used during Phase 2
14 Flavors Were Used during Phase 2 45 % of Participants Using Each Flavor Variety by Week: Phase 2 F7 40 F4 35 F11 F3 30 F13 F14 25 F8 20 F2 F12 15 F10 10 F5 F1 5 F9 F6 0 Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Altria Client Services l CMI | ENDS Conference l 12/06/2018 l FINAL | 12
Slide 13: Flavor Consideration Sets Narrowed over Time
Flavor Consideration Sets Narrowed over Time Altria Client Services l CMI | ENDS Conference l 12/06/2018 l FINAL | 13
Slide 14: Relationships between Initial Liking and Use Occasions Weakened Over Time
Relationships between Initial Liking and Use Occasions Weakened Over Time Correlation Coefficients for Relative Likinga and Relative Use Occasionb F14 F13 F12 F11 F10 F9 F8 Week 1 F7 Week 6 F6 F5 F4 F3 F2 F1 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 a: Liking scores during trial adjusted for individual
Slide 15: Flavor Preferences Changed over Time
Flavor Preferences Changed over Time 60 % Participants Used a Flavor Ranked in Their Top 4 Liking during Trial F7 50 F4 F11 F3 40 F13 F14 30 F8 F2 F12 20 F10 F5 F1 10 F9 F6 0 week 1 week 2 week 3 week 4 week 5 week 6 Top 4: The four flavors rated highest on the 7-point liking scale during trial (Pha
Slide 16: Participants that Switched Used More Flavors
Participants that Switched Used More Flavors Number of Flavors Used by Behavioral Outcome Smoked Same Amount Decreaseda Cigarettes Switchedb to MarkTen® N = 61 N = 257 N = 208 1 to 2 varieties 3 to 4 5 to 6 7 or more Same Decrease Switched Mean Number of 5.48 5.92 6.42 Flavors S.E.M 0.70 0.37 0.44 a
Slide 17: Number of Flavors Played a Role in Smoking Reduction
Number of Flavors Played a Role in Smoking Reduction Cigarette Smokers Dual Cigarette/Vapers Change In Cigarette Smoking Smoked More Smoked More Smoked Less Smoked Less * Number of Flavors Used During the Entire 6-Week Period Observed values Fit values *Significant association between #flavors and w
Slide 18: Overall Conclusions
Overall Conclusions MarkTen® products present an opportunity to reduce the harm from cigarette smoking Flavor options play a role in adult cigarette smokers’ early trial and adoption of MarkTen® A wide variety of flavor options is necessary to capture all adult smokers’ preferences Flavor us
Slide 19: Conclusions Continued
Conclusions Continued Results align with the growing body of literature1 suggesting: Flavors may play a critical role in continued ENDS use after trial and in moving adult cigarette smokers toward potentially less harmful tobacco products 1: e.g. Audrain-McGovern, Strasser, Wileyto 2016; Barbe