Altria’s Latest Move
Altria Group, the maker of Marlboro cigarettes, has acquired e-cigarette startup NJOY for $2.75 billion, giving Altria full global ownership of NJOY’s line of electronic vaping products, including NJOY ACE, the only pod-based e-vapor product with market authorizations from the FDA.
Altria’s CEO, Billy Gifford, believes that the company can responsibly accelerate the adoption of NJOY ACE by U.S. adult smokers and competitive adult vapers.
This move comes after Altria’s exit from its stake in electronic cigarette maker Juul Labs, which was valued at $12.8 billion in 2018 but faced scrutiny and legal issues over its alleged targeting of minors.
What is NJOY?
NJOY is a company that produces electronic cigarettes and vaping devices designed for adult smokers who are looking for an alternative to traditional combustible tobacco products. Their products are designed for adult smokers and they offer various products, including the NJOY ACE, which is a compact, portable vaping device that uses a magnetic pod system to help prevent leakage and spills.
The Altria-NJOY Deal
With the acquisition of NJOY, Altria aims to responsibly accelerate the adoption of the company’s e-vapor products among adult smokers and competitive adult vapers. The deal is a strategic move for Altria as the company continues to pivot towards smoke-free products.
This deal includes $500 million in cash payments that are contingent on certain regulatory outcomes with their products. The company is one of the few vaping companies whose products have received full approval for sale from the FDA.
The acquisition of NJOY is a significant move in the tobacco industry, but the safety and health implications of e-cigarettes and vaping devices remain debated and concerned.
Altria’s acquisition of NJOY is a significant move in the tobacco industry as the company continues to pivot towards smoke-free products. With this acquisition, Altria gains ownership of the brand’s e-vapor product portfolio, including the FDA-approved NJOY ACE. This deal is a strategic move for Altria, but the safety and health implications of e-cigarettes and vaping devices remain a concern.
Whether this acquisition is a positive development for public health or whether it further entrenches the tobacco industry’s influence is up for debate. It will be interesting to see what the future holds for smoke-free products.