Heated tobacco boost

Altria’s smokeless products division could earn the company close to $930 million in additional revenue over the next five years while also increasing its share in the company’s total revenue base, reports Forbes, citing research by Trefis Team.

Led by MIT engineers and Wall Street analysts, Trefis Team attributed the anticipated growth in part to demand from millennials for heated tobacco products.

Additionally, the FDA marketing approval for Philip Morris’ IQOS product is expected to open up the U.S. market further for heated-tobacco players. The company’s investment in Juul (which controls 70 percent of the smokeless market in the U.S.) is also expected to lead to a boost in segment revenues.

Overall, Trefis team expects Altria’s total net revenue to increase to $20.4 billion by 2023.