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Understanding Our Supply Chain - Strategy & Approach - Altria

Our business partners are key to our companies' success. Across the Altria family of companies, we work to build relationships with suppliers and to promote actions consistent with our Mission and Values.

Each day Altria’s companies work with thousands of businesses that help our companies manufacture and market their products. It is important to us that our partners understand that we care about both the business results and how they are achieved.

Understanding Our Supply Chain

From Seed to Shelf: Understanding our Supply Chain

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American-grown tobacco is the backbone of products manufactured by Altria Group’s Philip Morris USA and U.S. Smokeless Tobacco Company subsidiaries.

These companies purchase tobacco from several thousand farmers concentrated mainly in five U.S. states.

U.S. Smokeless Tobacco Company uses 100 percent American-grown tobacco in its moist smokeless tobacco products.

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Altria Group’s Philip Morris USA and John Middleton subsidiaries buy international tobacco leaf through third-party suppliers who purchase from farmers in emerging economies like Brazil, Argentina, Malawi and Turkey.

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Ste. Michelle Wine Estates, an Altria Group subsidiary, owns 3,500 acres of prime vineyards in Washington and contracts for grapes from about 60 long-term grape-growers on another 19,500 acres.

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In addition to tobacco growers, our companies work with more than 5,000 suppliers worldwide.

In 2011, the total spending with minority- and women-owned businesses by those Altria companies tracking supplier diversity spending was nearly 10 percent of total non-tobacco purchases.

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Our tobacco companies’ products are distributed to more than 200,000 retail stores through a network of wholesalers.

According to the National Association of Convenience Stores in 2010, tobacco products account for nearly 40 percent of a convenience store's in-store sales.

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In 2009, Ste. Michelle Wine Estates shipped its products through about 150 distributors. Its wines are served and sold by more than 130,000 retailers and restaurants nationwide.