Altria buys NJOY for $2.75B in new bet on e-cigarette market

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Altria is betting that NJOY will prove to be an easier way to tap the market since six of the company’s products have received full approval from the Food and Drug Administration.

Big tobacco firms are investing heavily in traditional cigarette alternatives as smoking rates decline globally, but the e-cigarette category has faced tough regulatory scrutiny over under-age usage and health concerns.

In comparison, Juul is still seeking approval of its products and is under the threat that the health regulator could“ is an authorized product versus a pending product . There are no litigation challenges. The youth usage is at minimum and so that brings a level of certainty,” said Altria Chief Executive Officer Billy Gifford.

Altria on Friday exchanged its investment in Juul, last valued at $250 million, for some of the vaping company’s heated tobacco intellectual property.

 

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