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FTC sues to unwind Marlboro owner's $12.8 billion Juul investment
While e-cigarettes may have been quickly replaced in headlines by a new threat to public health, it appears the government has not forgotten about vaping. However, this time the news isn't about banning flavored pods or raising the legal age, instead the FTC is suing to unwind Altria's $12.8 billion investment in vaping giant Juul. While the folks at Altria might be having similar thoughts after lawsuits and regulation cut the value of that stake to around $4.2 billion in January, the feds take issue with the way the two companies "turned from competitors to collaborators by eliminating competition and sharing in Juul's profits." At the time the investment even upset people within Juul, due to the suddenly hypocritical stance of claiming to be a way to help people quit smoking despite having a major investor that's a tobacco giant (Altria owns brands like Marlboro and Virginia Slims). According to the FTC, the partnership came about after Altria agreed not to compete with the upstart in exchange for getting that big stake. In a statement, Altria VP Murray Garnick said "We believe that our investment in JUUL does not harm competition and that the FTC misunderstood the facts. We are disappointed with the FTC's decision, believe we have a strong defense and will vigorously defend our investment."
Marlboro owner's stake in Juul is worth a third of its original value
When cigarette giant Altria invested $12.8 billion into Juul, it probably thought this was a brilliant move that gave it a stake in the future as conventional smoking continued to decline. It's probably having second thoughts in 2020, however. The company wrote off another $4.1 billion of the investment's value in the fourth quarter due to the onslaught of lawsuits over allegedly deceptive and teen-oriented marketing. Combined with an earlier $4.5 billion write-off, Altria's Juul stake is now worth $4.2 billion -- just under a third of its original value.
Big tobacco keeps starting 'grassroots' Facebook campaigns
This article was produced in partnership with Point, a YouTube channel for investigative journalism. Facebook groups like 'Oregonians Against Tax Hikes' and 'No Blank Checks for Colorado' look like citizen groups concerned about taxes. But after a few months running extensive Facebook ad campaigns, they recede with members' petition signatures and personal data. They also happen to be owned and operated by tobacco companies. "[Tobacco companies] create these groups to oppose efforts to pass laws either through legislatures or especially through ballot measures," explains Vince Willmore, Vice President of Communications for the Campaign for Tobacco-Free Kids. "Every time there's a ballot measure to increase a tobacco tax or pass a smoke-free air law, they'll come up with a front group with a great sounding name when it's entirely funded and run by the tobacco companies."
FDA accuses Juul of undermining efforts to prevent teen vaping
Many people raised eyebrows when Marlboro owner Altria bought a $12.8 billion stake in the vaping giant Juul, and that now includes the US Food and Drug Administration. Commissioner Scott Gottlieb has requested a joint meeting with the CEOs of Juul and Altria over concerns their statements "contradict" commitments they made in October to reduce teen vaping. The official wanted both executives to explain how their deal affects their plans to curb youth vape use, and noted that data suggested trends were headed in the wrong direction.
Marlboro owner invests $12.8 billion in e-cigarette maker Juul
Tobacco giant Altria (which owns Marlboro and Virginia Slims) has bought a 35 percent stake in Juul for $12.8 billion. The major deal pegs the e-cigarette company's valuation at $38 billion, which more than doubles its value since a previous investment in July. Altria will place Juul's products next to its cigarettes on retail shelves, and, pending antitrust approval, hold a third of Juul's board seats.
Juul stops selling flavored e-cigarette pods, kills social media accounts
Juul Labs, the makers of the wildly popular Juul e-cigarettes, announced today that it will stop selling most of its flavored vaping pods in retail stores. The company will also put an end to its social media promotions and advertisements. The decision on the part of Juul comes as the government appears ready to apply more scrutiny to the vape brand and its potential targeting of kids.
