Dec 11 (Reuters) - Altria said on Thursday that CEO Billy Gifford, who has led the tobacco giant since 2020, would retire in May and be succeeded by finance head Salvatore Mancuso.
Gifford plans to serve as a consultant following his retirement until at least the end of 2026. Mancuso, who joined the company in 1990 and has been CFO for five years, will take over the Marlboro-maker's turbulent drive to offset falling cigarette sales with revenues from new products like vapes.
Kathryn McQuade, chair
of Altria's board, said Mancuso's election was the result of long-term succession planning that explored both internal and external candidates.
"We believe Sal has deep industry knowledge, a keen understanding of Altria's challenges and opportunities, and a commitment to our 2028 enterprise goals," she said.
Altria's targets include a mid-single-digit compounded annual growth rate for profits in 2028, entry into at least five non-nicotine product categories by that year and, initially, an aim to grow U.S. volumes from tobacco alternatives by 35% from 2022 levels.
However, the latter target was placed under review as Altria and rivals struggle to compete with a booming market for unlicensed e-cigarettes, mostly from China.
GIFFORD'S RETIREMENT FOLLOWS STRING OF CEO CHANGES
Gifford is the latest in a string of consumer goods CEOs to leave or be removed, with top leaders also changed at Diageo, Nestle, Coca-Cola and more.
Altria said insider Heather Newman would succeed Mancuso following the transition to the top job.
As well as competition from unregulated vapes, Altria is grappling with lawsuits that have seen imports of its key NJOY vape brand blocked, regulatory challenges and pressures on its core tobacco business as some financially stretched smokers switch expensive labels like Marlboro for cheaper brands.
Tobacco still makes up the majority of Altria's revenue and profit but is in long-term decline in the U.S., and the company forecast annual profit largely below market expectations in late October.
(Reporting by Neil J Kanatt in Bengaluru and Emma Rumney in London. Editing by Sriraj Kalluvila and Mark Potter)
