Altria Takes a $4.1 Billion Hit on Juul Stake

“We enter 2020 with continued focus on harm reduction,” he said in a statement.

Thousands of Americans have been sickened by lung illnesses tied to vaping and at least 59 people have died, prompting the American Medical Association to call for a ban on the products. The Centers for Disease Control and Prevention reported that the vast majority of patients who developed the vaping-related lung disease had vaped THC, the high-inducing chemical in marijuana.

Altria bought its stake in Juul as it was looking to shift away from cigarettes. The e-cigarette start-up, at the time experiencing explosive growth, was valued at $38 billion.

Then came the vaping backlash. Juul has been hit with lawsuits by federal agencies and state attorneys general, who contend that the company targeted young people with deceptive marketing, including nicotine pods with flavors like mango.

The Food and Drug Administration announced a partial ban on flavored pods this month, forbidding the sale of most flavors but exempting menthol and tobacco flavors.

K.C. Crosthwaite, the chief executive of Juul, said the company was focused on “preparing high-quality, scientifically rigorous premarket tobacco product applications to earn authorization in the U.S.”

Article source: https://www.nytimes.com/2020/01/30/business/juul-altria-vaping.html?emc=rss&partner=rss