top of page
Search
  • snitzoid

Are tobacco makers' profits going up or down? Who smokes/where?




Tobacco giant Altria, the maker of storied brand Marlboro, has made another foray into the world of e-cigarettes with a $2.75bn deal to acquire NJOY. That comes just days after Altria announced it was effectively ditching its stake in Juul — a $12.8bn investment that’s gone up in smoke since the end of 2018.


Altria will be hoping this second bet proves more successful, with 6 NJOY products already fully-approved by the FDA. That was a hurdle Juul struggled — and still struggles — to surmount, eventually leading Altria to swap its investment, most recently valued at just $250 million, for some of the vape company’s IP.


It’s unsurprising that Altria and its big-cig rivals are seeking routes into the burgeoning e-cigarette market, as smoking rates for traditional cigarettes continue to drop. Indeed, in its most recent survey, Gallup found that only 11% of Americans had smoked a tobacco cigarette in the last week, down from 26% just 20 years ago.


Despite that decline, Altria has booked total operating income of more than $103bn since 2012 — giving it plenty of financial firepower to try, once again, to buy its way into the world of e-cigarette pods and pens. That space continues to look like the future, with the latest data suggesting some 15% of 18-29 year-olds already use the alternatives in America.

6 views0 comments

Recent Posts

See All

Florida Named as Shark Attack Capital of the World

Another attention grabbing stunt by DeSantis to promote his state. Is perfectly clear that the Australian sharks off the Great Barrier Reef are better by almost ever metric; bigger, stronger, faster,

The fatal flaw in public education.

Ironic most other affluent nations give almost all families school choice (like Charter schools). Not here. In many parts of the US, poor neighborhoods are plagued with smaller budgets for public edu

Comments


Post: Blog2_Post
bottom of page