american snuffbox Altria, maker of Marlboro brand cigarettes, announced on Monday that it would buy vaping company NJOY after recently divesting itself of bankrupt rival firm Juul as an investor.
Altria stated in a press release that buys NJOY for $2,750 million and will use its commercial resources to “accelerate adoption.” of this brand among adult smokers and “widen the competition” in the vaping category in the US (EU).
The NJOY purchase comes two days after Altria announced it was ditching bankrupt Juul as a minority investor. given that its interest, estimated at around $12.8 billion in 2018, plummeted to $250 million at the end of last year.
Giant Altria has been focused on moving towards a “smoke-free future” for many years. that is, in replacing traditional tobacco cigarettes with modern alternatives such as electronic cigarettes or electronic cigarettes.
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According to the note, the vaping category is the largest in the US among “smokeless” alternatives, reaching 14 million consumers in 2022, including 9.5 million who only vape, and generating a turnover of $7 billion.
Altria expects the U.S. vaping business to continue to grow at a “one-digit” rate per year for the next decade. as the regulator sets conditions for the promotion of products derived from tobacco and synthetic nicotine, such as e-cigarettes.
Exactly NJOY is the only company in its category to be approved by the FDA.— to promote its products, and Altria reserves an additional $500 million if it receives new permits.
The giant also said that You will retain the intellectual property of NJOY products just as you would of Juul products. whose business was thwarted by thousands of US lawsuits that accused the company of marketing its fruit and mint flavored cigarettes in an attractive way to minors.
Preventing and discouraging the use of these alternatives to traditional tobacco among minors is one of the major challenges facing the sector, and one in six high school students smoked or vaped in 2022, according to the flagship US Federal Tobacco and Youth Survey.
(EFE)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
