Tobacco titan Altria ditches Juul to splurge on another vape maker (with a key difference)

Hitting the vape again… Marlboro maker Altria is taking another puff of the e-cig market. After pulling out of its disastrous Juul investment, Altria announced it’s buying vaping startup NJOY for $2.7B+. After its Juul experience, it might seem surprising that Altria’s still splurging billions on e-cigs.

• Mango-flavored mayhem: In 2018, Altria invested $12.8B for a 35% stake in Juul. But after regulators ordered Juul off US shelves, that stake is worth just $250M.
• NJOY’ing an advantage: NJOY is one of the few e-cig makers whose vapes have FDA clearance (market leaders Juul and Vuse are still struggling for a regulatory greenlight).
• Bluepuff: Altria agreed to pay an extra $500M for NJOY if the FDA authorizes more of its products (like: a new vape that uses Bluetooth to authenticate smokers).

Menthol pod envy… As smokers trade cigs for vapes and other alternatives, tobacco giants have tried to stay competitive with puffable tech — especially since the FDA and the Biden admin plan to slash nicotine in traditional cigarettes. Philip Morris International (the cig juggernaut behind Parliament and Marlboro outside the US) has invested heavily in “smoke-free” alts like IQOS heated tobacco devices, which’ve fueled its growth in Europe and Asia. Meanwhile, Altria’s developing an IQOS rival.

• Now this… NJOY is America’s third most popular e-cig brand, but lags behind competitors like Juul and the Reynolds-owned Vuse. Still, there’s a reason Altria wants it.