Marlboro Snus national expansion expected in March

Philip Morris USA and Altria Sales & Distribution have announced the introduction of Marlboro Snus for distribution to retail stores nationally. According to Philip Morris, retail stores should start seeing Snus March 11th.

Marlboro Snus is a smoke-free, spit-free tobacco product and is available in four varieties: Rich, Mild, Spearmint and Peppermint.

Situation

Adult smokers are:

Increasingly facing more challenges:

• Smoking bans
• Societal pressures
• High cigarette taxes

Looking for a smokeless tobacco alternative to cigarettes:

• 1 in 4 adult smokers are interested in an alternative to cigarettes but have not found MST and acceptable alternative [1]
• Many adult smokers are interested in a spit-free tobacco pouch from Marlboro. [1]

Opportunity

Provide an enjoyable spit-free, smoke-free tobacco product made for adult smokers.

What adult smokers say: [2]

• “I liked the convenient pouches… no mess.”
• “They’re small… a perfect size to fit in your mouth.”
• “It has a rich, bold flavor.”
• “The flavor is just right.”
• “The Spearmint was very cool and minty.”
• “It had a refreshing taste. It was cooling.”
• “It’s pocket-friendly.”
• “I liked the slim package.”
• You can carry this in the same pocket as your cigarettes.”

Products and UPCs

Product and UPCs	Case	Carton	Pack	Suppressed Pack
Marlboro Snus – Rich	0 97000 70183 9	0 97000 10180 6	0 97000 00018 5	0 970180 5
Marlboro Snus – Mild	0 97000 70193 8	0 97000 10190 5	0 97000 00019 2	0 970190 2
Marlboro Snus – Spearmint	0 97000 70203 4	0 97000 10200 1	0 97000 00020 8	0 970200 8
Marlboro Snus – Peppermint	0 97000 70213 3 0	97000 10210 0	0 97000 00021 5	0 970210 5

March 2010 Expansion Map

Sources: 1. Marlboro Smokeless Concept Study conducted December ’08/January ’09 among over 1000 adult smokers, ages 21-54. 2. Marlboro Snus Ad/Pack test conducted December 17, 2008 – January 15, 2009 among 835 smokers, ages 21-64; Marlboro Smokeless Rendezvous conducted May 12, 2009 in Scottsdale, AZ among two focus groups of adult male smokers, ages 21-45 who have tried/purchased Marlboro Snus.