Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, smokeless products, and wine in the United States and internationally. The company’s direct and indirect wholly-owned subsidiaries include Philip Morris USA Inc. (PM USA); John Middleton Co. (Middleton); and UST LLC (UST), which through its direct and indirect wholly-owned subsidiaries, including U.S. Smokeless Tobacco Company LLC (USSTC) and Ste. Michelle Wine Estates Ltd. (Ste. Michelle), is engaged in the manufacture and sale of smokeless products and wine. Nu Mark LLC (Nu Mark), an indirect wholly-owned subsidiary of the company, is engaged in the development and marketing of innovative tobacco products for adult tobacco consumers. Philip Morris Capital Corporation (PMCC), another wholly-owned subsidiary of the company, maintains a portfolio of leveraged and direct finance leases. In addition, it held approximately 26.9% of the economic and voting interest of SABMiller plc (SABMiller), as of December 31, 2013. Segments The company’s segments include Smokeable Products, Smokeless Products, and Wine. Products Tobacco Space The products of the company’s tobacco subsidiaries include smokeable tobacco products, comprised of cigarettes manufactured and sold by PM USA and machine-made large cigars and pipe tobacco manufactured and sold by Middleton; smokeless tobacco products manufactured and sold primarily by USSTC; and tobacco products, including electronic cigarettes developed and marketed by Nu Mark. Cigarettes: PM USA is a cigarette company in the United States, with total cigarette shipment volume in the United States of approximately 129.3 billion units in 2013. Marlboro is the principal cigarette brand of PM USA. Cigars: Middleton is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco to customers, substantially all of which are located in the United States. Middleton sources the production of a portion of its cigars overseas. Total shipment volume for cigars was approximately 1.2 billion units in 2013. Black & Mild is the principal cigar brand of Middleton. Smokeless tobacco products: USSTC is a producer and marketer of moist smokeless tobacco (MST) products. The smokeless products segment includes the premium brands, Copenhagen and Skoal; value brands, Red Seal and Husky; and Marlboro Snus, a premium PM USA spit-free smokeless tobacco product. Substantially all of the smokeless tobacco products are manufactured and sold to customers in the United States. In addition, the company’s tobacco subsidiaries have entered the e-vapor category. In 2013, Nu Mark introduced MarkTen electronic cigarettes in Indiana and Arizona. In February 2014, the company announced Nu Mark’s entry into an agreement to acquire the e-vapor business of Green Smoke, Inc. and its affiliates. Further, in December 2013, the company entered into a series of agreements with Philip Morris International Inc. (PMI) pursuant to which Altria Group, Inc. subsidiaries provide a license to PMI to sell Altria Group, Inc.’s e-vapor products outside the United States and PMI subsidiaries provide a license to Altria Group, Inc. subsidiaries to sell two of PMI’s heated tobacco product technologies in the United States. Wine Ste. Michelle is a producer of premium varietal and blended table wines. Ste. Michelle is a producer of Washington state wines, primarily Chateau Ste. Michelle, Columbia Crest and 14 Hands and owns wineries in or distributes wines from other wine regions and foreign countries. Ste. Michelle’s total 2013 wine shipment volume of approximately 8.0 million cases. Ste. Michelle holds an 85% ownership interest in Michelle-Antinori, LLC, which owns Stag’s Leap Wine Cellars in Napa Valley. Ste. Michelle also owns Conn Creek in Napa Valley and Erath in Oregon. In addition, Ste. Michelle imports and markets Antinori and Villa Maria Estate wines and Champagne Nicolas Feuillatte in the United States. Strategy Main elements of Ste. Michelle’s strategy are as follows: focusing on expanded domestic distribution of its wines, especially in certain account categories such as restaurants, wholesale clubs, supermarkets, wine shops and mass merchandisers, and on improving product mix to higher-priced, premium products. Intellectual Property As of December 31, 2013, the company had a portfolio of 600 United States patents. Environmental Regulation The company and its subsidiaries are subject to various federal, state and local laws and regulations concerning the discharge of materials into the environment, or otherwise related to environmental protection, including, in the United States: The Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation and Liability Act, which can impose joint and several liability on each responsible party. History Altria Group, Inc. was founded in 1919.
altria group inc (MO:New York)
6601 West Broad Street
Richmond, VA 23230
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