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Philip Morris to debut smokeless, spitless product

Altria Group Inc's Philip Morris USA plans to unveil a new spitless, smokeless tobacco product under the Marlboro brand name to spur sales amid declining cigarette consumption.

Marlboro Snus will be tested in Dallas starting in August. It consists of a small pouch of finely ground tobacco in mint, spice and other flavors that users insert between their cheek and gum, Richmond, Virginia-based Philip Morris said yesterday in a statement.

Philip Morris, the largest US tobacco company, is using the world's top-selling cigarette brand to try to tap growth in the US$3.8 billion US smokeless tobacco market.

Marlboro Snus is the company's second test of a spitless snuff after introducing Taboka in Indianapolis last July.

"It's a hard category because of established brand loyalty" to products such as UST Inc's Copenhagen, said Thomas Russo, who manages more than US$3 billion, including Altria shares, at Gardner Russo & Gardner in Lancaster, Pennsylvania.

Marlboro's "familiarity will give them a stronger chance at unseating other brands," he said.

The smokeless, spitless Marlboro product will sell for less than a pack of Marlboro cigarettes, said Philip Morris spokesman Steve Callahan, who declined to be more specific.

Marlboro's popularity "may help to encourage trial of this product by adult smokers," Philip Morris said in the statement.

Snus may appeal to consumers who don't like smokeless products that require spitting, the company said.
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