Pallav Mittal

Pallav Mittal asked why Altria chose to launch ON! PLUS in only three states initially instead of a national rollout, given existing distribution, and if there was any inventory benefit from ON! PLUS in the Q4 numbers. He also questioned the reported competitive pricing trends in nicotine pouches, which showed a sequential decline of 3% and a 12% year-over-year drop, as this seemed to contradict scanner data suggesting price increases for larger players.

Answer

CEO Billy Gifford stated there was no significant Q4 benefit from ON! PLUS inventory, as shipments were minimal and messy due to a halt. He explained the initial three-state launch was for ease, as the sales force had already sold it into those retailers, with the national rollout following in the first half of 2026. Regarding competitive pricing, Billy Gifford clarified that the reported declines were for all competitors combined, influenced by significant competitor promotions (e.g., free cans) in Q3 and Q4, while ON! Classic's price had increased.

Pallav Mittal questioned why Altria initiated on! PLUS distribution in only three states instead of a national launch, and if there was any inventory benefit from on! PLUS in the Q4 numbers. He also asked for clarification on the discrepancy between Altria's reported competitive nicotine pouch pricing declines and scanner data suggesting price increases for larger players.

Answer

CEO Billy Gifford stated there was no significant inventory benefit from on! PLUS in Q4 due to initial halted shipments, and the three-state launch was for ease of resuming shipments, with national rollout following in H1 2026. He clarified that Altria's reported competitive pricing declines were for all competitors combined, influenced by significant promotional activity (e.g., free cans) in Q3 and Q4, while on! Classic's price increased.

Pallav Mittal asked if Smurfit Westrock is observing a shift in trade flows, with Chinese importers turning to Latin America, and how this might position the company. He also questioned the company's appetite for future M&A, asking if they would consider a major deal in a weak macro environment despite current leverage of 2.5x.

Answer

CEO Tony Smurfit stated that the company's primary focus is deleveraging the balance sheet towards a 2.0x target, ruling out any large, 'off the pitch' acquisitions for the foreseeable future. Regarding trade flows, he noted that Smurfit Westrock has minimal exposure to China but maintains strong, long-term customer relationships in Latin America, viewing the changing dynamics as a neutral-to-positive development for the company.