Blog: You, us, everyone

Altria Group, Inc. produces and markets products through three segments: smokeable products (PM USA); smokeless products (USSTCC); and wine. Recent news reports suggest the Biden administration is considering stricter regulations on tobacco products, including a ban on menthol-flavored cigarettes and a reduction in nicotine content to nonaddictive levels. While these reported initiatives have yet to be confirmed, such amendments to tobacco regulations could take several years. We therefore think that, for the time being, tobacco companies will continue to generate strong cash flows and profits and be able to maintain their current investment status. Longer-term investors will benefit from a performance pickup given the regulatory uncertainties in the US and the market's growing ESG focus, which both are short-term concerns.