Altria is one of the most influential companies in the tobacco industry, although most people don’t know it by name. As the owner and operator of many large tobacco and cigarette brands, Altria’s influence extends into many subsidiaries, some of which aren’t even tobacco-related. Let’s look at Altria and find out who actually owns the company, plus a bit about its subsidiaries.
To compile this content, 24/7 Wall Street used sources from Altria’s website that detail the company holdings, as well as publicly available information regarding the controversial rebranding of the company.
Who Actually Owns Altria?
Altria is a publicly owned company, which means that individuals can purchase shares of the company, stock, and are considered partial owners in accordance to the percentage of the outstanding shares are owned.
Currently, the largest holders of Altria include Vanguard (9.06%), Blackrock (7.17%), Capital World Investors (4.01%), and State Street Corporation (3.90%). Each of these are institutional holders, meaning they aren’t individuals. Institutions are themselves managed by teams, board members, and other organizations, so ownership of the company is quite dispersed.
On an individual level, the largest single (individual) shareholder of Altria is Carlos Slim Helu, a Mexican businessman and the former richest man in the world from 2010-2013. His holdings total 0.46% of the outstanding shares and are valued at $329.85 million. Currently, Helu has a net worth of $101.7B.
The Founding of Altria
Today, Altria Group, Inc. is headquartered right outside of Richmond, Virginia. The company’s primary business is still in tobacco, but it has recently undergone some changes and hopes to move away from that association.
Originally, Altria was known as Philip Morris, the well-known cigarette and tobacco brand, until it was totally rebranded in 2003. Before Altria, Philip Morris was founded in 1902 in New York City as Philip Morris & Co. The American division is still extremely valuable and owns many of the most famous cigarette brands that are still around today.
A Total Rebrand and Spinoff
Altria, formerly Philip Morris, attempted a rebrand in 2003, where the company first implemented the new name. The move was quite controversial. The name “Altria” was chosen to reflect the company’s new direction and aspirations. It is claimed to come from the Latin word for “high.”
However, famous linguist Steven Pinker’s main issue is that the name change was more about image than substance, with the goal to make people think of something lofty, not cancerous and highly addictive products.
Additionally, the rebrand helped them to invest in other products without the baggage of their previous ones. Notably, Altria held majority shares in companies like Kraft and InBev, a food and drink brand, respectively.
Altria has also made significant investments in the cannabis and e-cigarette industries. In 2018, the company acquired a 45% stake in Cronos Group for $1.8 billion and a 35% stake in JUUL Labs, an e-cigarette company, for $12.8 billion.
Altria’s Subsidiaries
Altria owns a few subsidiary companies, as well as some investments where they have a lot of say. Let’s look at them.
Subsidiaries
- Philip Morris USA: Philip Morris USA is the American tobacco division of Altria Group, Inc. It is best known for its famous Marlboro brand, currently the best-selling cigarette brand in the world.
- U.S. Smokeless Tobacco Co.: A subsidiary of Altria Group, Inc., this aptly named company is a leading manufacturer of smokeless tobacco products, most famously Copenhagen and Skoal.
- John Middleton: John Middleton is a cigar manufacturer owned by Altria Group, Inc. It owns the brands Black & Mild and Middleton’s Cherry Blend.
- Helix Innovations: Helix Innovations is a global business of Swiss tobacco company Burger Söhne, in which Altria Group, Inc. holds a very large stake. Helix Innovations is known for its On! brand of tobacco products.
- NJOY: NJOY Holdings, Inc. is an e-cigarette company acquired by Altria Group, Inc. in 2023. They make vapes.
Joint Ventures
- Horizon Innovations: Horizon Innovations LLC is a joint venture between Altria and Japan Tobacco. The company plans on making Ploom heated tobacco sticks in the United States, with FDA approval expected by 2025.
Investments
- ABInBev: Altria has a stake in Anheuser-Busch InBev, a massive drink and brewing company based in Leuven, Belgium. ABInBev is one of the largest beer companies in the world and owns brands like Budweiser, Corona, and Stella Artois.
- CRONOS Group: Altria also acquired a 45% stake in Cronos Group, a Canadian cannabis company, in 2018.
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