Cigarette Maker Altria Takes $4.5 Billion Charge on Juul
- Company cites vape flavor bans, potential FDA action as risks
- Meanwhile, Altria will expand its IQOS sales into second city
Juul Labs e-cigarette pods.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Altria Group Inc., the U.S. maker of Marlboro cigarettes, reported a $4.5 billion charge related to its investment in Juul Labs Inc. as the nascent vaping market faces a reckoning.
The company said the non-cash charge isn’t tied to a single event. Instead, it cited a slew of challenges: a high chance the U.S. Food & Drug Administration will remove flavored e-vapor products from the market, various bans already put in place by some cities and states and other factors. The shares rose 1.2% in New York trading.