PMI, Altria announce contract manufacturing arrangement

PMI's overseas facilities will produce cigarettes for Altria's U.S. operations, with first shipments expected in early 2027By Diane Adam on Aug. 25, 2026

PMI to manufacture cigarettes for Altria's Philip Morris USA under new deal. | Shutterstock

Philip Morris International Inc. on Monday announced that it has entered, through its non-U.S. affiliates, into a contract manufacturing arrangement for cigarettes with Philip Morris USA, an operating company of Altria.

“The collaboration is expected to leverage the respective combustible cigarette manufacturing capabilities and expertise of both organizations while we continue to focus on delivering a smoke-free future,” PMI said in a statement.

The first shipments as part of the arrangement are expected to begin early in 2027, subject to operational readiness and applicable regulatory requirements, PMI said.

“We do not expect a material impact from this arrangement on our 2026 financials,” PMI said.

Altria, which makes Marlboro cigarettes in the United States, said the agreement will enhance “operational capabilities” and bring “economic benefits.”

PMI said it has not commercialized combustible cigarettes in the United States, and that it has no plans to do so. 

“This arrangement will not change that,” PMI said.

Altria and PMI will continue to operate independently and maintain responsibility for their own commercialization, distribution and regulatory activities, according to a statement from Altria.

PMI’s global corporate headquarters is in Stamford, Connecticut, and Altria is headquartered in Richmond, Virginia.