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Altria Investors Vote Down Measures on Lobbying, Underage Use

Altria Investors Vote Down Measures on Lobbying, Underage Use

(Bloomberg) -- Altria Group Inc. shareholders rejected two proposals that would have forced it to disclose more information about lobbying efforts and its measures to prevent underage nicotine use.

The initiatives were voted down during a virtual shareholder meeting on Thursday. At the annual event, Altria’s Chief Executive Officer Billy Gifford also said the company is standing behind its dividend, its deal with Juul Labs Inc. and its Marlboro brand.

The U.S. producer of Marlboro cigarettes is a frequent target of activists and health advocates for its efforts to influence policymakers. The company also faces questions about how it’s trying to contain underage use after its recent investment in vaping company Juul, which faces lawsuits saying its advertising was geared to teens.

Shareholder Trinity Health, represented by Sister Nora Nash, argued in a proposal that Altria and Juul’s lack of disclosures about lobbying “could pose reputational risks.”

The other initiative was from the Sisters of St. Francis of Philadelphia, which argued that the level of underage use of nicotine products is unacceptable and that Altria should disclose more about its activities to reduce it.

The tobacco producer has no plans to decrease marketing of Marlboro, although it’s also starting to promote products it argues are less harmful than smoking. These include IQOS, a device that heats tobacco without setting it on fire, and an oral nicotine pouch. The company is on track to submit an application to the U.S. Food and Drug Administration for the pouch product, known as On!, this month, Gifford said.

Executives also noted that underage use of vaping continued to rise in 2019 and said Altria is “committed to be part of the solution.”

The World Health Organization has recently warned that smoking is linked to worse outcomes from Covid-19, prompting a question at the meeting about what Altria is doing to address the issue. A company official affirmed that tobacco products cause harm and disease and said that in matters of tobacco and health, its policies should be guided by the conclusions of public health authorities.

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