Last updated on June 13th, 2024 at 04:40 pm
On May 22, Altria Group announced a new structure to maximize its core tobacco businesses while “realizing its aspiration to be the U.S. leader in authorized, non-combustible, reduced-risk products.”
Key components of this new structure:
- Establishment of two divisions—core tobacco and innovative tobacco products.
- Creation of a chief growth officer function to accelerate speed to market for innovative products and technologies.
- Aligning product development efforts more directly to the core and innovative tobacco product businesses.
“This is a dynamic time in the tobacco industry, and just as we lead in traditional tobacco products, we intend to lead in offering adult smokers more choices in innovative, non-combustible, reduced-risk products,” said Howard Willard, chairman and CEO of Richmond, Virginia-based Altria. “We expect this new structure to accelerate our innovation pipeline, maximize our core tobacco businesses and allow us to continue to reward shareholders.”
Altria will change its leadership structure from a COO who oversees all operating companies to a structure aligned with the strategies of maximizing income from core tobacco businesses and growing new income with innovative tobacco products.
The PM USA, USSTC, Middleton and Nat Sherman brands will form Altria’s core tobacco division.
Jody Begley, SVP of tobacco products, will oversee the core tobacco businesses, as well as its product development and engineering support. Begley has been president and GM of Nu Mark since 2015. He brings to this role 23 years of experience in sales, marketing and strategy from PM USA, USSTC and Nu Mark, as well as leadership positions in Altria Group Distribution.
Leading the brands will be: Heather Newman, president and CEO, PM USA; Shannon Leistra, president and CEO, USSTC; Ryan Bauersachs, managing director and general manager, Middleton; and Dominik Meier, managing director and general manager, Nat Sherman.
Strategy and business development
Nu Mark, Altria’s innovation company, will focus on developing a portfolio of non-combustible products for adult smokers and those with “potential to drive adult smoker conversion.”
This portfolio includes oral nicotine-containing products, e-vapor and “innovative inhalable products.”
Brian Quigley, as president and CEO of Nu Mark, will oversee the innovative products business. Quigley has served as president and CEO of USSTC since 2012. He joined PM USA in 2003 and has served in brand management leadership roles in PM USA and USSTC.
Chief growth officer
K.C. Crosthwaite has been named SVP and chief growth officer (CGO). Crosthwaite has served as president and CEO of PM USA for the past year. Before that, he was VP of strategy and business development for ALCS and VP and GM of Marlboro for PM USA. He joined PM USA in 1997.
Altria has established the CGO function to “identify and pursue Altria’s strategic and innovative growth priorities across the tobacco landscape. This function will identify marketplace and adult tobacco consumer insights and translate them into strategies for product development, consumer engagement, future of commerce and business development,” the company says.
This group also will be responsible for innovative product development and enhancing the company’s competencies, technologies and talent.
The changes are effective June 1.
