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Eric Adam Serotta

Research Analyst at Morgan Stanley

Eric Adam Serotta is an Executive Director and Senior Equity Analyst at Morgan Stanley, specializing in the Consumer Staples sector with in-depth coverage of companies like Celsius, Vita Coco, Primo Brands, and Boston Beer. He covers a portfolio of seven publicly traded companies, primarily within the U.S. beverages, tobacco, and diversified food industries, and has a track record of 52% profitable recommendations with an average return per transaction of -9.2%, and a best-rated call yielding +47.6% on Boston Beer. Serotta joined Morgan Stanley in 2022 following previous research roles at International Strategy & Investment, and has been a registered securities professional for over 24 years with active FINRA licensure and the CFA designation. His work contributes to Morgan Stanley’s award-winning equity research, leveraging a quantitative and qualitative framework to identify high-quality business models across consumer markets.

Eric Adam Serotta's questions to ALTRIA GROUP (MO) leadership

Question · Q3 2025

Eric Adam Serotta asked about the premium price point strategy for ON+ during its initial launch in three states, relative to ON and other competitors. He also inquired about the significant year-over-year increase in controllable costs within the smokeable segment, how these costs are managed going forward, and if they constrained the segment's OCI growth in the quarter.

Answer

CEO Billy Gifford confirmed ON+ is positioned as a premium-priced product due to its differentiation and consumer experience, noting introductory price promotions would be used. CFO Sal Mancuso advised against quarter-by-quarter analysis of controllable costs due to timing, emphasizing long-term cost management through programs like 'Optimize and Accelerate' and the effective use of data analytics and revenue growth management tools. He highlighted that smokeable OCI was up 2.5% year-to-date.

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