Altria Group, Inc. · NYSE:MO
Altria — Technical Presentation (September 2019)
23 slides from Altria's technical presentation, Sep 15, 2019
Slide 1: HPHC Market Map Study for US Machine-Made Cigars – Part 1
HPHC Market Map Study for US Machine-Made Cigars – Part 1 Physical Properties, Filler, and Smoke HPHC variability Karl A. Wagner, Lara L. Baker, Michael J. Morton, Raquel M. Olegario, Jennifer H. Smith Tobacco Science Research Conference Sept. 15 - 18, 2019 Karl A. Wagner | Regulatory Sciences | Alt
Slide 2: Study Overview
Study Overview Part 1: market map overview • Discuss the inherent variability of cigars • Describe the products • Present physical properties and abbreviated HPHCs for filler and smoke1 under CORESTA, ISO and Intense smoking regimes • Compare the physical properties and HPHC variability of cigars
Slide 3: Cigar Regulatory Landscape
Cigar Regulatory Landscape In May 2016, FDA issued final rule to deem other tobacco products • Regulates cigars, pipe tobacco, e-cigarettes and other tobacco products, including dissolvables, gels, and hookah tobacco 1 Maryland Federal District Court 2 • Ordered FDA to set May 11, 2020, as the d
Slide 4: Comparison of Sources of HPHC Variability
Comparison of Sources of HPHC Variability Cigarettes Cigars • Uniform product category • Diverse product category • Extensive testing experience • Limited testing experience Analytical • Standardized methods • Few smoke standardized methods Process • Extensive interlaboratory testing • Limited inter
Slide 5: Cigar Selection
Cigar Selection 24 US machine-made cigars • Selection based on: − Market share − Style (untipped, filter tip, plastic tip, wood tip) − Wide range of flavor characteristics Includes 9 manufacturers • ~38 % market share for cigarillos • ~11 % market share for filter tips Dimensions and propertie
Slide 6: Market Map - Machine Made Cigars
Market Map - Machine Made Cigars Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th 2019 | FINAL 6
Slide 7: Smoking Regimes
Smoking Regimes CORESTA Recommended Method No. 64 - Routine Analytical Cigar-Smoking Machine - Specifications, Definitions and Standard Conditions ISO 3308:2012, Cigarettes. Routine analytical cigarette-smoking machine — Definitions and standard conditions ISO 20778:2018, Cigarettes. Routine a
Slide 8: Abbreviated HPHC List for Cigarettes
Abbreviated HPHC List for Cigarettes1 All testing was conducted at ISO 17025 accredited laboratories Roll-your-own Tobacco and Cigarette Smoke Cigarette Filler Nicotine, Carbon Monoxide Nicotine Ammonia Ammonia NNK, NNN NNN, NNK Formaldehyde, Acetaldehyde, Acrolein, Crotonaldehyde Arsenic, Cadmium
Slide 9: Cigar and Cigarette Physical Properties
Cigar and Cigarette Physical Properties Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th 2019 | FINAL 9
Slide 10: RTD – Cigars and Cigarettes
RTD – Cigars and Cigarettes 24 cigar products (220 reps each) and 10 cigarette products (100 reps each) ● ● The cigars and cigarettes were commercially available in 2018 and 2017, respectively Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th 2019 | FINAL 10
Slide 11: Weight – Cigars and Cigarettes
Weight – Cigars and Cigarettes 24 cigar products (220 reps each) and 10 cigarette products (100 reps each) ● ● The cigars and cigarettes were commercially available in 2018 and 2017, respectively Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th 2019 | FINAL 11
Slide 12: Relative Weight – Cigars and Cigarettes
Relative Weight – Cigars and Cigarettes 24 cigar products (220 reps each) and 10 cigarette products (100 reps each) ● ● The cigars and cigarettes were commercially available in 2018 and 2017 respectively Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th 2019 | FINAL 1
Slide 13: Cigar and Cigarette HPHC Yields and Variability
Cigar and Cigarette HPHC Yields and Variability Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th 2019 | FINAL 13
Slide 14: TPM Variability Across Categories and Regimes
TPM Variability Across Categories and Regimes 24 cigar products (42 reps each) and 25 cigarette products (55 reps each) ●CORESTA Cigars ●ISO Cigars ●Intense Cigars ●ISO Cigarettes ●Intense Cigarettes The cigars and cigarettes were commercially available in 2018 and 2012, respectively Karl A. Wagner
Slide 15: Relative TPM Variability Across Categories and Regimes
Relative TPM Variability Across Categories and Regimes 24 cigar products (42 reps each) and 25 cigarette products (55 reps each) ●CORESTA Cigars ●ISO Cigars ●Intense Cigars ●ISO Cigarettes ●Intense Cigarettes The cigars and cigarettes were commercially available in 2018 and 2012, respectively Karl A
Slide 16: Short-term Variability – Smoke
Short-term Variability – Smoke 24 cigar products, 146 cigarette products, 7 replicates per brand Cigar CORESTA Cigar ISO Cigar Intense Cigarette ISO Cigarette Intense 25 20 (across all products) Average % RSD 15 10 5 0 Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th
Slide 17: Short-term Variability – Filler
Short-term Variability – Filler 24 cigar products, 146 cigarette products, 7 replicates per brand Ground Cigars Cigarette Filler (across all products) 25 20 Avergae % RSD 15 10 5 0 Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th 2019 | FINAL 17
Slide 18: NNK – Ground Cigar
NNK – Ground Cigar 3500 3000 2500 NNK (ng/g) 2000 1500 1000 500 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Product Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th 2019 | FINAL 18
Slide 19: NNK – Cigar Smoke Yields
NNK – Cigar Smoke Yields 3000 CORESTA ISO 2500 Intense 2000 NNK (ng/cigar) 1500 1000 500 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Product Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th 2019 | FINAL 19
Slide 20: Nicotine – Ground Cigar
Nicotine – Ground Cigar 25 20 Nicotine (mg/g) 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Product Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th 2019 | FINAL 20
Slide 21: Nicotine – Cigar Smoke Yields
Nicotine – Cigar Smoke Yields 14 CORESTA 12 ISO Intense 10 Nicotine (mg/cigar) 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Product Karl A. Wagner | Regulatory Sciences | Altria Client Services | TSRC Sept 15-18th 2019 | FINAL 21
Slide 22: Key Takeaways
Key Takeaways Cigars are a more diverse product category than cigarettes Cigar physical properties and smoke yields are significantly more variable than cigarettes Cigar filler HPHCs show significantly less variability than cigar smoke HPHCs and may be useful for comparative purposes In the
Slide 23: Key Takeaways
Key Takeaways www.altria.com/ALCS-Science Cigars are a more diverse product category than cigarettes Cigar physical properties and smoke yields are significantly more variable than cigarettes Cigar filler HPHCs show significantly less variability than cigar smoke HPHCs and may be useful for co
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