Altria gets stubbed outTobacco company Altria sees its shares lose their fire after the FDA makes a major move against one of its biggest brands.
- The Food and Drug Administration is close to banning Juul e-cigarettes from the shelves of the US. Yep, teenagers behind the running tracks all over the world will be in mourning this week, especially because the FDA isn’t stopping there – it’s still investigating all the other e-cigs in the US market, and your cherry-cola-flavored fave could be next.
- Altria shares sank nearly 10% on Wednesday to their lowest levels since February last year as investors grieved the looming loss. Altria spent $12.8bn on a 35% stake in the creator of the trendy sticks – Juul Labs – in 2018 as teens started obsessing over the product.
- Obvs, that decision hasn’t aged well (much like some smokers). Juul has faced increasing scrutiny from regulators since then over just how appealing nicotine was becoming to teenagers, and had to halt sales of a bunch of tempting flavors in 2019. The estimated value of Altria’s investment now is around $1.6bn, a fraction of what it paid. Who’s next, we wonder.
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