Altria Group, Inc. · NYSE:MO

Altria — 72nd Tobacco Science Research Conference (September 2018)

19 slides from Altria's conference presentation, Sep 18, 2018

  1. Slide 1: E-vapor Product Appeal Among Tobacco Users and Non-users and the Role of Flavor in Tobacco Harm Reduction

    E-vapor Product Appeal Among Tobacco Users and Non-users and the Role of Flavor in Tobacco Harm Reduction Jessica Parker Zdinak, Ph.D. September 18, 2018 72nd Tobacco Science Research Conference Altria Client Services l Consumer Insights &Engagement l TSRC l 09/18/2018 l Final | 1

  2. Slide 2: Tobacco Harm Reduction at Altria

    Tobacco Harm Reduction at Altria Our long-term goal at Altria is to achieve a leadership position in innovative and reduced risk tobacco products. Continuum of Risk Combusted Tobacco Products Non-combusted Tobacco Products MOST LEAST HARMFUL HARMFUL July 28, 2017: Protecting American Families: Compr

  3. Slide 3: Harm Reduction Opportunities

    Harm Reduction Opportunities ~5 MM Adult Smokeless Consumers ~40 MM Adult Cigarette Smokers ~10 MM Adult E-Vapor Consumers *Source: 18+ATCT 12MM ending December 2017 Numbers may not foot due to rounding Altria Client Services l Consumer Insights &Engagement l TSRC l 09/18/2018 l Final | 3

  4. Slide 4: Tobacco Harm Reduction Product Platforms

    Tobacco Harm Reduction Product Platforms Oral Tobacco/ Heated Tobacco E-Vapor Nicotine Products Products Altria Client Services l Consumer Insights &Engagement l TSRC l 09/18/2018 l Final | 4

  5. Slide 5: MarkTen E-Vapor Products Portfolio

    MarkTen® E-Vapor Products Portfolio Altria Client Services l Consumer Insights &Engagement l TSRC l 09/18/2018 l Final | 5

  6. Slide 6: Role of Flavors in Tobacco Harm Reduction

    Role of Flavors in Tobacco Harm Reduction Appeal = Perceptions and Behavioral Before Product Trial Intentions (PBI) Study Switching behaviors = After Trial and Use Actual Use Study Unintended consequences = Impact on Non-Users PBI study Altria Client Services l Consumer Insights &Engagement l TSRC l

  7. Slide 7: The Role of Appeal in Flavor Selection Before Trial

    The Role of Appeal in Flavor Selection Before Trial Research Question: What role, if any, do flavor options play in appeal of ENDS products among tobacco users and non-users? We conducted a quasi-experimental online survey (perceptions and behavioral intentions study) with 4,210 adult tobacco users

  8. Slide 8: Perceptions and Behavioral Intentions Study: Methodology

    Perceptions and Behavioral Intentions Study: Methodology  Quantitative, online study (02/23/17 – 04/24/17)  4,210 adult users and nonusers 1. Cigarette Smokers (planning to quit; n=841) 2. Cigarette Smokers (not planning to quit; n=847) 3. E-vapor Users (n=841)  Dual Users (smoke cigarettes and u

  9. Slide 9: Perceptions and Behavioral Intentions Study: Design

    Perceptions and Behavioral Intentions Study: Design RESPONDENT SAMPLE (Current, Former, and Never Tobacco Users) SCREENER (Intentions to quit smoking & tobacco, intentions to use cigarettes & other nicotine products) PRE-TEST (Intentions to try, use, dual use, switch; Risk perceptions) Random Assign

  10. Slide 10: Flavor Portfolio Maximizes Appeal of MarkTen Products Among Adult Smokers and Vapers

    Flavor Portfolio Maximizes Appeal of MarkTen® Products Among Adult Smokers and Vapers Which of the following Adult smokers Adult smokers NOT E-vapor users products are most planning to quit planning to quit (N = 426) appealing to you? (N = 415) (N = 423) (select up to 3) MarkTen® Smooth Smooth Menth

  11. Slide 11: Adult Non-tobacco Users Do Not Find MarkTen Flavors Appealing

    Adult Non-tobacco Users Do Not Find MarkTen® Flavors Appealing Which of the following products are most Former users Never users LA-24 Non-users appealing to you? (N = 417) (N = 425) (N = 410) (select up to 3) Smooth Menthol MarkTen® Smooth Menthol… 8% MarkTen® Smooth Menthol 2.4% 5% MarkTen® Smooth

  12. Slide 12: No Impact of Appeal on Intentions to Use

    No Impact of Appeal on Intentions to Use Full Exposure 6 Avg Intention 5 3.7 3.6 3.6 3.6 4 3.3 3.0 * 3 2 1 Former Users Never Users LA-24 Non-Users (n=153) (n=82) (n=111) Pre Post Reduced Exposure 6 Avg Intention 5 4 3.5 3.5 3.6 3.5 3.2 3.1 3 2 1 Former Users Never Users LA-24 Non-Users (n=148) (n=8

  13. Slide 13: ENDS Flavors Play a Critical Role in Harm Reduction

    ENDS Flavors Play a Critical Role in Harm Reduction Research Question: What role, if any, do flavor options play in switching behavior associated with ENDS? We conducted an 8-week, 2-phase, actual use study with 614 adult cigarette smokers not planning to quit We characterized MarkTen® (M10) e-vap

  14. Slide 14: Actual Use Study: Sample Disposition & Methods

    Actual Use Study: Sample Disposition & Methods Lost to follow up: Did not return, even after re-contact Product-related: Did not use during trial or did not score > 4 on intentions to use Noncompliant: Missed 5 or more daily surveys in a row or missed > 2 Day 7 surveys Altria Client Services l Consu

  15. Slide 15: Actual Use Study: Overview

    Actual Use Study: Overview • > 3 Intentions to Try > 4 Intentions to Use • No plans to quit smoking in next 3 months Altria Client Services l Consumer Insights &Engagement l TSRC l 09/18/2018 l Final | 15

  16. Slide 16: 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 Consumer Insights &Engagement l TSRC l 09/18/2018 l Final | 16

  17. Slide 17: Participants that Switched Completely Used More Flavors

    Participants that Switched Completely Used More Flavors Number of Flavors Used by Behavioral Outcome Switchedb from Cigarettes Smoked Same # Cigarettes Decreaseda Cigarettes to MarkTen N = 61 N = 257 N = 208 1 variety 2 3 4 5 6 7 or more Same Decrease Switched Mean 5.48 5.92 6.42 #Varieties S.D. 2.6

  18. Slide 18: Overall Conclusions

    Overall Conclusions  ENDS products present an opportunity to reduce the harm from cigarette smoking  Flavor portfolio maximizes appeal of MarkTen® products among adult smokers and vapers  Adult non-users do not find MarkTen® flavors appealing  A wide variety of flavor options is necessary to cap

  19. Slide 19: For additional information visit our science website

    For additional information visit our science website at Altria.com/ALCS- Science. 19

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