Altria Group, Inc. · NYSE:MO
Altria — Global Forum on Nicotine (GFN) / ISoNTech 2022
25 slides from Altria's conference presentation, Jun 16, 2022
Slide 1: on! Nicotine Pouches: Unique Harm Reduction Opportunity
on!® Nicotine Pouches Unique Harm Reduction Opportunity Mohamadi Sarkar, M. Pharm., Ph.D., FCP Fellow, Regulatory Affairs Scientific Strategy Affiliate Professor of Clinical Pharmacology School of Pharmacy, VCU Richmond, VA Mohamadi Sarkar | Altria Client Services LLC | GFN / ISoNTech | June 16 2022
Slide 2: Agenda
Agenda ▪ Background ▪ Modern Oral Tobacco Products ▪ on!® Nicotine Pouches ▪ Scientific Evidence Demonstrating the Harm Reduction Opportunity ▪ Conclusions Mohamadi Sarkar | Altria Client Services LLC | GFN / ISoNTech | June 16 2022 2
Slide 3: The Problem: Harm Caused from Cigarette Smoking
The Problem: Harm Caused from Cigarette Smoking COMBUSTIBLE TOBACCO – MOST HAZARDOUS FORM OF TOBACCO 30.8MILLION 1 OVERWHELMING Cigarette smoking is addictive and causes serious diseases including: US adult smokers EVIDENCE Lung cancer Emphysema Cardiovascular disease ~443,000 U.S. Deaths Attributab
Slide 4: The Solution: Tobacco Harm Reduction Framework
The Solution: Tobacco Harm Reduction Framework Traditional Decrease Increase Strategies Initiation Cessation Tobacco Harm Reduction Framework Complement to Switching ATC Accelerate to Less Harmful Smoking-Related Existing Approach Products Harm Reduction ATC=Adult Tobacco Consumers Mohamadi Sarkar |
Slide 5: Risk Differential – Combustible vs. Smoke-free Products
Risk Differential – Combustible vs. Smoke-free Products Risk Cliff Between Combustible & Smoke-free Tobacco1 HIGHER RISK Combustible Tobacco Products LOWER Smoke-free Tobacco Products RISK 1Adapted from Nutt, et. al Estimating the Harms of Nicotine-Containing Products Using the MCDA Approach. Eur. A
Slide 6: Responsibly lead the transition of adult smokers to a smoke-free future
Responsibly lead the transition of adult smokers to a SMOKE-FREE FUTURE Mohamadi Sarkar | Altria Client Services LLC | GFN / ISoNTech | June 16 2022 6
Slide 7: A Portfolio Approach to Harm Reduction
A Portfolio Approach to Harm Reduction Advance Altria’s harm reduction aspiration through smoke-free product platforms Smokeless Heated Modern Oral E-Vapor Tobacco Products Tobacco Products Tobacco Products Products e.g., Copenhagen® e.g., IQOS®* e.g., on!® Nicotine Pouches e.g., JUUL** Mohamadi Sar
Slide 8: Current Nicotine Pouch Landscape
Current Nicotine Pouch Landscape TOBACCO DERIVED NICOTINE SYNTHETIC/ NON-TOBACCO DERIVED NICOTINE Fully on!® VELO Zyn Rogue FRĒ Bidi 2ONE FR3SH Loaded Rush Niin 7 10 9 4 4 6 9 4 6 4 5 Mint, Mint*, Citrus*, Cool Mint, Wintergreen, Mint, Watermelon+ Glacier Mint, Mint, Wintergreen, Mintsanity, Cool Mi
Slide 9: Current Landscape of Other Modern Oral Tobacco Products
Current Landscape of Other Modern Oral Tobacco Products VELO Rogue Rogue Rogue Solace Lucy Lucy* Pixotine FORM Lozenge Lozenge Gum Tablet Gum Gum Lozenges Sticks 4 3 3 3 3 3 3 4 Mint Wintergreen Wintergreen Wintergreen Mint Wintergreen Mint Winter Ice FLAVORS Dark Mint Peppermint Peppermint Peppermi
Slide 10: Oral Nicotine Pouch (ONP) Category
Oral Nicotine Pouch (ONP) Category (share of total U.S. oral tobacco category) ONP Share ONP Share Growth by Brand (Q4 2021 vs. q4 2020) +7.4 pp 17.9 47% 38% 10.5 3.5 2.8 9% 6% 0.7 0.4 Q4 2020 Q4 2021 Zyn on!® Velo Other There are now ~1 million adult oral nicotine pouch consumers* Source: IRI InfoS
Slide 11: on! Harm Reduction Opportunity
on!® Harm Reduction Opportunity on!® nicotine pouches have the most variety of any nicotine pouches currently in the U.S. market SEVEN FLAVORS 5 NICOTINE STRENGTHS 1.5 2 3.5 4 8 MG MG MG MG MG Nicotine NO TOBACCO LEAF pouches All flavors are available for purchase through e-commerce. Select SKUs are
Slide 12: Scientific Framework
Scientific Framework CONSTITUENT INDIVIDUAL RISK POPULATION HARM REDUCTION REDUCTION REDUCTION Risks and Product Chemical Toxicology Studies in Perception Benefits to Design and and Physical and Risk Adult Human and Behavior Health of the Control Characterization Assessment Subjects Assessment Popul
Slide 13: HPHCs in on! Nicotine Pouches Absent or Reduced Compared to Cigarettes
HPHCs in on!® Nicotine Pouches are Absent or Substantially Reduced Compared to Cigarettes 100% Reference CONSTITUENT REDUCTION Cigarette 80% 60% >99% lower levels than cigarettes 40% Not detectable or BLOQ in on!® Nicotine Pouches Percent reduction not calculated 20% 0% NNK NNN B[a]P As Cd Crotonald
Slide 14: HPHCs in on! Nicotine Pouches Absent or Reduced Compared to General Snus
HPHCs in on!® Nicotine Pouches are Absent or Substantially Reduced Compared to General® Snus 100% Reference CONSTITUENT REDUCTION General® Snus 80% 60% >98% lower levels than General® Snus 40% Not detectable or BLOQ in on!® Nicotine Pouches Percent reduction not calculated 20% 0% NNK NNN B[a]P As Cd
Slide 15: Health Risks From Using on! Nicotine Pouches Substantially Lower Than Cigarettes
Health Risks From Using on!® Nicotine Pouches are Substantially Lower Than Cigarettes INDIVIDUAL RISK REDUCTION Relative Disease Risks of ST Use and Cigarette Smoking Compared to Never Tobacco Use 25 23.26 Cigarettes Smokeless Tobacco Never Tobacco Use 20 Relative Risk 15 10.89 10.58 10 6.76 5 3.27
Slide 16: The on! Portfolio Delivers a Wide Range of Nicotine
The on!® Portfolio Delivers a Wide Range of Nicotine 16 Mint 8 mg Mint 4 mg 14 Mint 3.5 mg Mint 2 mg Plasma Nicotine Conc. (ng/ml) 12 Mint 1.5 mg 10 8 6 4 2 0 0 20 40 60 80 100 120 140 160 180 Time (minutes) Mohamadi Sarkar | Altria Client Services LLC | GFN / ISoNTech | June 16 2022 9
Slide 17: Adult Tobacco Users Classified as Likely to Use on! Nicotine Pouches
Moderate to Large Proportion of Adult Tobacco Users Classified as Likely to Use on!® Nicotine Pouches POPULATION HARM REDUCTION Pre-test Post-test 100% 80% 62% 59% Likelihood 60% 54% 55% 52% 51% 38% 38% 40% 35% 35% 20% 0% ASPQ ASNPQ ST Users Dual Users LA-24 Users (n=330) (n=330) (n=333) (n=331) (n=
Slide 18: Adult Tobacco Users Switched or Reduced Traditional Tobacco Usage
Large Proportions of Adult Tobacco Users Switched or Reduced Traditional Tobacco Usage POPULATION HARM REDUCTION SWITCHED Adult Smokers n=399 28% COMPLETELY 72% to on!® Adult Dippers n=353 Nicotine Pouches Reduced cigarette consumption by Adult Smokers n=399 39% 50% or more Adult Dippers n=353 14% R
Slide 19: Reasons for Future Use of on! Among Adult Smokers
Reasons for Future Use of on!® Among Adult Smokers POPULATION HARM REDUCTION Percentage of adult smokers To help prevent relapse to 22% Harm Reduction smoking To help cut back or quit smoking 49% Comes in a variety of flavors 47% Enjoy the taste 50% Flavors Has a flavor I like 57% Comes in a variety
Slide 20: on! Nicotine Pouch Sourcing Dynamics
on!® Nicotine Pouch Sourcing Dynamics Category Sourcing (By Primary Tobacco Category) 5% 10% 10% 5% 20% Other Tobacco Products Competitive Nicotine Pouch 45% MST & Snus Cigarettes 65% 40% on! ® ZYN Source: POS Scan Data WE 1/1/22; Loyalty ID Sourcing for repurchasers (purchased 6+ weeks); Geo: All s
Slide 21: Impact of on! Nicotine Pouches on Nonusers of Tobacco Products
Impact of on!® Nicotine Pouches on Nonusers of Tobacco Products POPULATION HARM REDUCTION Low likelihood Adult nonusers Low likelihood of appeal understand that the of initiation among nonusers on!® products are by youth and low intentions to try and use not risk free absolute risk perceptions are n
Slide 22: Integration of Multiple Lines of Evidence to Demonstrate APPH
Integration of Multiple Lines of Evidence to Demonstrate APPH* HPHC reduced / eliminated Switching will reduce exposure to most HPHCs which should reduce smoking related disease risks Many adult smokers switch completely or reduce cigs > 50% Net Population Benefit Adult tobacco users perceive produc
Slide 23: MRTPA Path Forward
MRTPA Path Forward OVERCOME MISPERCEPTIONS OPTIMIZE CLAIM SUBMIT MRTPAS AND BARRIERS TO TRANSITION COMMUNICATIONS TO ACCELERATE TRANSITION Mohamadi Sarkar | Altria Client Services LLC | GFN / ISoNTech | June 16 2022 23
Slide 24: Advancing Tobacco Harm Reduction
Advancing Tobacco Harm Reduction CHOICES COMMUNICATION CONSISTENCY A variety of FDA Accurate, non-misleading A consistent message authorized reduced risk information about reduced from public health products for adult tobacco risk products, authorized authorities in addition to consumers by FDA, dir
Slide 25: Any Questions?
Any Questions? Visit our team at our GFN Booth! Mohamadi Sarkar | Altria Client Services LLC | GFN / ISoNTech | June 16 2022 25
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