Altria Group, Inc. · NYSE:MO
Altria — CORESTA Smoke-Techno Conference 2019
27 slides from Altria's conference presentation, October 2019
Slide 1: HPHC Market Map Study for US Machine-Made Cigars – Part 1
HPHC Market Map Study for US Machine-Made Cigars – Part 1 Physical Properties, Filler, and Smoke HPHC variability Karl A. Wagner, Lara L. Baker, Michael J. Morton, Raquel M. Olegario, Jennifer H. Smith CORESTA Smoke-Techno Conference October 6 – 10, 2019 Presentation ST36 Karl A. Wagner | Regulatory
Slide 2: Study Overview
Study Overview Part 1: market map overview • Discuss the inherent variability of cigars • Describe the products • Present physical properties and abbreviated HPHCs for filler and smoke1 under CORESTA, ISO and Intense smoking regimes • Compare the physical properties and HPHC variability of cigars
Slide 3: Cigar Regulatory Landscape
Cigar Regulatory Landscape In May 2016, FDA issued final rule to deem other tobacco products • Regulates cigars, pipe tobacco, e-cigarettes and other tobacco products, including dissolvables, gels, and hookah tobacco 1 Maryland Federal District Court 2 • Ordered FDA to set May 11, 2020, as the d
Slide 4: Comparison of Sources of HPHC Variability
Comparison of Sources of HPHC Variability Cigarettes Cigars • Uniform product category • Diverse product category • Extensive testing experience • Limited testing experience Analytical • Standardized methods • Few smoke standardized methods Process • Extensive interlaboratory testing • Limited inter
Slide 5: Cigar Selection
Cigar Selection 24 US machine-made cigars • Selection based on: − Market share − Style (untipped, filter tip, plastic tip, wood tip) − Wide range of flavor characteristics Includes 9 manufacturers • ~38 % market share for cigarillos • ~11 % market share for filter tips Dimensions and propertie
Slide 6: Market Map - Machine Made Cigars
Market Map - Machine Made Cigars Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 6
Slide 7: Market Map – Fillers
Market Map –Fillers Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 7
Slide 8: Smoking Regimes
Smoking Regimes CORESTA Recommended Method No. 64 - Routine Analytical Cigar-Smoking Machine - Specifications, Definitions and Standard Conditions ISO 3308:2012, Cigarettes. Routine analytical cigarette-smoking machine — Definitions and standard conditions ISO 20778:2018, Cigarettes. Routine a
Slide 9: Custom Cigar Smoke Trap
Custom Cigar Smoke Trap Tipped Cigars Untipped Cigars U.S. Patent No. 10,412,993 B2, Sept. 17, 2019: Matthew Melvin, Karl Wagner, Dariusz Masiarz Presented at 2017 CORESTA SSPT meeting: Blake, T., et al., The Challenges of Machine Smoking the Diverse Cigar Product Category. Poster Presentation - STP
Slide 10: Abbreviated HPHC List for Cigarettes
Abbreviated HPHC List for Cigarettes1 All testing was conducted at ISO 17025 accredited laboratories Roll-your-own Tobacco and Cigarette Smoke Cigarette Filler Nicotine, Carbon Monoxide Nicotine Ammonia Ammonia NNK, NNN NNN, NNK Formaldehyde, Acetaldehyde, Acrolein, Crotonaldehyde Arsenic, Cadmium
Slide 11: Cigar and Cigarette Physical Properties
Cigar and Cigarette Physical Properties Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 11
Slide 12: RTD – Cigars and Cigarettes
RTD – Cigars and Cigarettes 24 cigar products (220 reps each) and 10 cigarette products (100 reps each) ● ● The cigars and cigarettes were commercially available in 2018 and 2017, respectively Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 12
Slide 13: Weight – Cigars and Cigarettes
Weight – Cigars and Cigarettes 24 cigar products (220 reps each) and 10 cigarette products (100 reps each) ● ● The cigars and cigarettes were commercially available in 2018 and 2017, respectively Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36
Slide 14: Relative Weight – Cigars and Cigarettes
Relative Weight – Cigars and Cigarettes 24 cigar products (220 reps each) and 10 cigarette products (100 reps each) ● ● The cigars and cigarettes were commercially available in 2018 and 2017 respectively Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019
Slide 15: Cigar and Cigarette HPHC Yields and Variability
Cigar and Cigarette HPHC Yields and Variability Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 15
Slide 16: TPM Variability Across Categories and Regimes
TPM Variability Across Categories and Regimes 24 cigar products (42 reps each) and 25 cigarette products (55 reps each) ●CORESTA Cigars ●ISO Cigars ●Intense Cigars ●ISO Cigarettes ●Intense Cigarettes The cigars and cigarettes were commercially available in 2018 and 2012, respectively Karl A. Wagner
Slide 17: Relative TPM Variability Across Categories and Regimes
Relative TPM Variability Across Categories and Regimes 24 cigar products (42 reps each) and 25 cigarette products (55 reps each) ●CORESTA Cigars ●ISO Cigars ●Intense Cigars ●ISO Cigarettes ●Intense Cigarettes The cigars and cigarettes were commercially available in 2018 and 2012, respectively Karl A
Slide 18: Short-term Variability – Smoke
Short-term Variability – Smoke 24 cigar products, 146 cigarette products, 7 replicates per brand Cigar CORESTA Cigar ISO Cigar Intense Cigarette ISO Cigarette Intense 25 20 (across all products) Average % RSD 15 10 5 0 Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT Octo
Slide 19: Short-term Variability – Filler
Short-term Variability – Filler 24 cigar products, 146 cigarette products, 7 replicates per brand Ground Cigars Cigarette Filler (across all products) 25 20 Avergae % RSD 15 10 5 0 Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 19
Slide 20: NNK – Ground Cigar
NNK – Ground Cigar 3500 3000 2500 NNK (ng/g) 2000 1500 1000 500 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Product Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 20
Slide 21: NNK – Cigar Smoke Yields
NNK – Cigar Smoke Yields 3000 CORESTA ISO 2500 Intense 2000 NNK (ng/cigar) 1500 1000 500 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Product Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 21
Slide 22: NNK – Cigar Smoke Yields
NNK – Cigar Smoke Yields 3000 CORESTA ISO 2500 Intense 2000 NNK (ng/cigar) 1500 1000 500 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Product Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 22
Slide 23: Nicotine – Ground Cigar
Nicotine – Ground Cigar 25 20 Nicotine (mg/g) 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Product Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 23
Slide 24: Nicotine – Cigar Smoke Yields
Nicotine – Cigar Smoke Yields 14 CORESTA 12 ISO Intense 10 Nicotine (mg/cigar) 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Product Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 24
Slide 25: Nicotine – Cigar Smoke Yields
Nicotine – Cigar Smoke Yields 14 CORESTA 12 ISO Intense 10 Nicotine (mg/cigar) 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Product Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 25
Slide 26: Key Takeaways
Key Takeaways Cigars are a more diverse product category than cigarettes Cigar physical properties and smoke yields are significantly more variable than cigarettes Cigar filler HPHCs show significantly less variability than cigar smoke HPHCs and may be useful for comparative purposes In the
Slide 27: Questions?
Thank You Questions? For copies of this presentation visit the Altria’s Science Website at www.altria.com/alcs-science Altria has a new Altria Science Twitter account Follow us @AltriaScience Karl A. Wagner | Regulatory Sciences | Altria Client Services | CORESTA SSPT October 6 -10, 2019 | ST36 27