This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2019/10/31/business/altria-juul.html

The article has changed 6 times. There is an RSS feed of changes available.

Version 1 Version 2
Altria, Owner of Philip Morris, Cuts the Value of Its Juul Stake by $4.5 Billion Juul’s Meltdown Costs Tobacco Giant Altria $4.5 Billion
(32 minutes later)
The tobacco giant Altria Group said Thursday that it had devalued its investment in the vaping company Juul Labs by $4.5 billion, a move that reflects deepening turmoil in the e-cigarette industry.The tobacco giant Altria Group said Thursday that it had devalued its investment in the vaping company Juul Labs by $4.5 billion, a move that reflects deepening turmoil in the e-cigarette industry.
Altria, one of the world’s largest tobacco companies, invested $12.8 billion in Juul in December 2018, acquiring a 35 percent stake in the Silicon Valley start-up.Altria, one of the world’s largest tobacco companies, invested $12.8 billion in Juul in December 2018, acquiring a 35 percent stake in the Silicon Valley start-up.
The company pointed to recent bans on vaping across the United States and the “increased likelihood” that the Food and Drug Administration would “remove flavored e-vapor products from the market.”The company pointed to recent bans on vaping across the United States and the “increased likelihood” that the Food and Drug Administration would “remove flavored e-vapor products from the market.”
Still, Altria’s chairman and chief executive, Howard Willard, said in a news release that the company believed the “evolution of the tobacco industry” represented a “significant opportunity.” Still, Altria’s chairman and chief executive, Howard Willard, said on an earnings call that while the e-cigarette industry was at a critical juncture, the company remained “committed to Juul’s success.”
“We believe that, with current adult smoker trends and e-vapor disruption, it’s an opportune time to expand on the availability of these options,” he said. “We must address underage use while also preserving options for the more than 20 million adult smokers who are interested in less harmful tobacco products,” Mr. Willard said.
“We continue to believe that raising the legal minimum age to purchase all tobacco products to 21 at the federal and state levels is the most effective action to reverse the rise in youth vaping.”
Juul did not immediately return a request for comment.Juul did not immediately return a request for comment.
The company, which has argued that e-cigarettes would save lives by helping people stop smoking, has come under intense scrutiny in recent months amid mounting outrage over vaping among teenagers and a spate of mysterious lung illnesses that have been linked to e-cigarettes.The company, which has argued that e-cigarettes would save lives by helping people stop smoking, has come under intense scrutiny in recent months amid mounting outrage over vaping among teenagers and a spate of mysterious lung illnesses that have been linked to e-cigarettes.
Juul is now facing multiple state and federal investigations.Juul is now facing multiple state and federal investigations.
The e-cigarette maker announced this month that it would suspend online sales of flavored products. The Trump administration has said it plans to ban the sale of most flavored e-cigarettes.The e-cigarette maker announced this month that it would suspend online sales of flavored products. The Trump administration has said it plans to ban the sale of most flavored e-cigarettes.
Part of the appeal of Juul’s e-cigarettes was the array of flavors, like mango, cucumber and crème. A ban would not only hurt the company’s sales but those of the small business owners who are selling the wares as part of a little-regulated $2.6 billion industry. Many vape shops rely on customized, flavored nicotine blends as the bulk of their sales.Part of the appeal of Juul’s e-cigarettes was the array of flavors, like mango, cucumber and crème. A ban would not only hurt the company’s sales but those of the small business owners who are selling the wares as part of a little-regulated $2.6 billion industry. Many vape shops rely on customized, flavored nicotine blends as the bulk of their sales.
The mint and menthol flavors, among Juul’s best sellers, are still being sold. The anticipated federal ban is expected to include them, despite lobbying from some trade groups to exempt them.The mint and menthol flavors, among Juul’s best sellers, are still being sold. The anticipated federal ban is expected to include them, despite lobbying from some trade groups to exempt them.
In September, Juul replaced its chief executive with an Altria executive, K.C. Crosthwaite, who has sought to contain the damage. Mr. Crosthwaite has suspended Juul’s advertising and withdrawn its support for a San Francisco ballot measure that aimed to reverse the city’s ban on e-cigarette sales.In September, Juul replaced its chief executive with an Altria executive, K.C. Crosthwaite, who has sought to contain the damage. Mr. Crosthwaite has suspended Juul’s advertising and withdrawn its support for a San Francisco ballot measure that aimed to reverse the city’s ban on e-cigarette sales.
On Tuesday, a former top executive at Juul filed a lawsuit contending the company knowingly sold at least a million tainted nicotine pods and refused to recall them.On Tuesday, a former top executive at Juul filed a lawsuit contending the company knowingly sold at least a million tainted nicotine pods and refused to recall them.