Altria, Philip Morris International ink contract manufacturing deals

Philip Morris International (PMI) and Altria have entered into contract manufacturing agreements, a move that will allow Altria to increase its cigarette imports and exports and capitalize on a tax rebate. This rebate, known as the 'double duty drawback,' enables U.S. tobacco companies exporting products to reclaim federal excise taxes paid on domestically sold goods, thereby boosting U.S. profits.

Under the arrangement, Altria, which produces Marlboro cigarettes in the U.S. but does not sell tobacco internationally, will partner with foreign manufacturers to expand its import and export business. Concurrently, PMI, which manufactures Marlboro for global markets and does not sell tobacco in the U.S., will produce for Altria. PMI stated that this deal does not alter its current market strategy and it has no plans to sell cigarettes in the U.S.

Altria indicated that these arrangements will improve efficiency and yield economic benefits. Both companies expect the first shipments to commence in 2027 and do not foresee any impact on their 2026 financial performance. Altria had previously announced similar partnerships with other manufacturers in January, anticipating a profit increase in the latter half of 2026.