Hitting the vape again… Marlboro maker Altria is taking another puff of the e-cig market. After pulling out of its disastrous Juul investment, Altria announced it’s buying vaping startup NJOY for $2.7B+. After its Juul experience, it might seem surprising that Altria’s still splurging billions on e-cigs.
Menthol pod envy… As smokers trade cigs for vapes and other alternatives, tobacco giants have tried to stay competitive with puffable tech — especially since the FDA and the Biden admin plan to slash nicotine in traditional cigarettes. Philip Morris International (the cig juggernaut behind Parliament and Marlboro outside the US) has invested heavily in “smoke-free” alts like IQOS heated tobacco devices, which’ve fueled its growth in Europe and Asia. Meanwhile, Altria’s developing an IQOS rival.
Pick your friends based on their enemies… Juul and NJOY are both vape makers, but with one major difference: regulators don’t hate NJOY. Juul created a lot of enemies as kids got hooked on its fruit-flavored vapes. Altria’s CEO explained NJOY’s appeal: “This is an authorized product versus a pending product. There are no litigation challenges. The youth usage is minimal.” Altria hopes to gain a foothold in the e-cig market without making too many enemies.