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While not formally quantified by management, investors increasingly view each percentage point of revenue shifting toward New Categories as meaningfully accretive to margins over time

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As scientific knowledge about the disease effects of smoking has advanced, and as research on tobacco industry documents and litigation have uncovered the deceptive and covert activities of tobacco companies, attitudes toward tobacco use and smoking in public places have changed from accepting to increasingly unfavorable

Importantly, we separated different exposure groups where possible: current exclusive e-cigarette users, dual users who both smoked and vaped, and former e-cigarette users