JTI and Altria Form Joint Venture to Commercialize Ploom Heated Tobacco in the U.S.
According to foreign media reports, Altria Group and Japan Tobacco announced a strategic partnership in heated tobacco, investing in a joint venture to market and commercialize heated tobacco sticks products in the United States and expand the product pip
According to foreign reports, Altria Group and Japan Tobacco Inc. (JT) jointly announced a strategic partnership in the heated tobacco product portfolio, with both parties investing to establish a joint venture (JV) for marketing and commercializing heated tobacco stick (HTS) products in the U.S. and expanding their fully-owned product pipeline.<\/span><\/div>
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Japan Tobacco Group, through its subsidiary Japan Tobacco International (JTI), will form a joint venture with Altria Group, using its subsidiary PM USA to market and commercialize HTS products in the U.S. under the Ploom brand and Marlboro brand consumables. The two groups have also signed a long-term, non-binding global memorandum of understanding (MOU) to explore various potential reduced-risk product (RRP) business opportunities.
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Japan Tobacco believes that this newly established partnership will support its strategic ambition to build a global presence through a strong focus on new tobacco products and drive sustainable growth for all stakeholders in the 4S model. Partnering with Altria, a leading tobacco company in the U.S., to enter the emerging heated tobacco sector will increase growth opportunities for both companies and enhance their goal of providing a wide range of harm-reduction products to adult consumers worldwide.<\/span><\/div>
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The joint venture structure is permanent and will establish Horizon Innovations LLC (Horizon) as the exclusive joint venture responsible for commercializing any current and future HTS products owned and developed by either party in the U.S.<\/span><\/div>
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The venture will commercialize HTS (heated tobacco stick) products in the U.S. under the Ploom and Marlboro trademarks.<\/span><\/div>
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JTI will hold a 25% economic interest in Horizon to reflect its contribution of HTS products. PM USA will hold a 75% economic interest, reflecting the company's strong distribution network and infrastructure, as well as its initial capital contribution of $150 million to Horizon. Subsequent contributions to Horizon will be allocated based on each party's respective economic interests. JTI and PM USA will maintain independent ownership of their respective intellectual property (IP), including any IP acquired after the establishment of the joint venture to support future HTS product development.<\/span><\/div>
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As part of the joint venture, JTI and PM USA will combine their scientific and regulatory expertise to jointly prepare documents for the U.S. Food and Drug Administration (FDA), including the premarket tobacco product application (PMTA) for the latest version of the Ploom HTS products. Both parties currently expect to submit these products' PMTA in the first half of 2025. Upon PMTA authorization, JTI will provide HTS devices, and PM USA will produce HTS consumables for Horizon. Additionally, JTI and PM USA have agreed on commercialization milestones for Horizon, including distribution requirements and minimum levels of cumulative marketing investment.<\/span><\/div>
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"By establishing this joint venture, we are combining JTI's marketing, innovation, R&D, and scientific capabilities developed over many years with Altria's scientific expertise, U.S. regulatory experience, and extensive infrastructure, creating a very strong proposition for adult smokers in the U.S.," said Eddy Pirard, CEO of Japan Tobacco International.<\/span><\/div>