The company has taken a lead in smoking alternatives with its IQOS heated-tobacco device, and now already gets almost a quarter of its revenue from non-combustible products, prompting a race with rivals like British American Tobacco Plc to win over smokers to smoke-free products like vaping and oral nicotine pouches. Altria Group Inc. is the biggest laggard in the report, as roughly 82% of its business comes from cigarettes, Spielman said. And even though it has investments in alternatives, the company isn't always in control of those, given its vape technology is through a stake in Juul Labs and its exposure to the heat-not-burn category is only by marketing Philip Morris's IQOS.