Altria Group and Philip Morris International have entered into reciprocal contract manufacturing arrangements designed to improve manufacturing efficiency and expand operational flexibility. The first shipments are expected in 2027, and both companies said the agreements are not expected to have a material impact on their 2026 results. Altria is looking to increase cigarette imports and exports and capitalize on the U.S. double duty drawback system, which allows tobacco companies to recover certain federal excise taxes previously paid on products that are later exported. For Philip Morris, the agreement provides access to Altria's manufacturing capabilities while allowing it to maintain its existing international-focused cigarette strategy, and the company emphasized that the arrangement does not mean it plans to sell cigarettes in the U.S.
Altria GroupReciprocal manufacturing deal improves efficiency and flexibility, with first shipments in 2027.
Philip Morris International IncAccess to Altria's manufacturing capabilities supports international strategy without U.S. entry.
Walmart Inc.