How Altria's Transforming Itself to Keep Its Lead

The biggest challenge that tobacco giant Altria Group (NYSE: MO)has faced in recent years has been the secular decline in cigarette smoking. So far, Altria has been able to do a good job of boosting prices on its loyal customer basein order to offset the negative impact of sliding overall volume. But recently, the shift in interest away from regular cigarettes toward alternatives like e-cigarettes, vaping, and heated-tobacco units has forced Altria to consider more seriously the need to keep up with the pack in pursuit of reduced-risk products.