Altria’s stock has fallen as a result of a report that the Food and Drug Administration may require Juul to remove its juuling products from retail shelves. A 35% stake in Juul is owned by the cigarette company.
The FDA may order the manufacturer of electronic cigarettes to stop selling their goods as soon as this Wednesday, according to a report in The Wall Street Journal. This comes after the FDA has been investigating the brand for several years due to worries that it may have helped in the growth of e-cigarette use among minors. CNN was unable to independently confirm the Journal’s allegation because the FDA has not yet made an official announcement.
CNN was informed by an FDA spokesperson that the agency was currently unable to offer any information. CNN contacted Juul Labs for comment, but they did not answer right away.
Shares of Altria fell 8% on Wednesday, and this year, the stock has lost 13% of its value. In 2018, the business spent $12.8 billion to acquire a 35% stake in Juul. As concerns about the health risks of vaping grew and US regulators pushed for a ban on e-cigarettes, the agreement soon went south. Juul received criticism for marketing vape pods in flavors like mango, crème, and cucumber that were well-liked by teenagers.
The business refused to sell its flavored goods in the US in 2019. That action was taken just before the FDA at the beginning of 2020 banned all vaping flavors other than tobacco and menthol.
In 2020, Altria (MO), which distributes Marlboro, Virginia Slims, and Parliament cigarettes in the US, disclosed that it has taken a $4.1 billion charge for its investment in Juul. “The increased number of legal cases pending against Juul and the expectation that the number of legal cases against Juul will continue to increase,” the tobacco giant noted.
That came after Altria announced in 2019 that it would write down a $4.5 billion part of its Juul stake. Altria estimated the worth of its Juul investment at less than $2 billion at the end of the previous year.
The Journal notes that Juul “could pursue an appeal through the FDA, challenge the decision in court or file a revised application for its products.”
This action follows Tuesday’s indication by the Biden administration that it will create a proposed regulation to set a maximum nicotine level in cigarettes and other tobacco products, thus reducing the amount of nicotine in items that are sold in the US. It is a move that no other government has made before, and if it were to be implemented, experts in public health think it would be transformative.
Despite the fact that e-cigarette products have been permitted to stay on the market for years, the FDA requested the manufacturers to file applications in 2020 to keep their products on the market.
Difference between Vaping and Juuling
Vaping: Traditional cigarettes include burning a substance that contains nicotine and the resultant smoke is inhaled into the lungs. Nicotine can be delivered into the lungs through vaping using the conventional combustion process. By heating water that includes nicotine and other ingredients with electricity, vapes create vapor that can be inhaled.
Although vaping does not produce tar-like regular cigarettes do, it has been demonstrated to cause or exacerbate lung issues and frequently contains many cancer-causing substances.
Juuling: Using an electronic cigarette known as a Juul, specifically, is referred to as “juuling.” Juuls do not resemble conventional e-cigarettes; instead, they are designed like a USB flash drive. Juuls can be charged simply by plugging them into any electronic device’s USB drive rather than a battery or specialized charger before juuling. Juul fluid frequently has fruit flavors or other flavors, like mint, to make it more appealing.
Many teenagers believe falsely that Juuls just contain water and flavoring and do not contain nicotine. Juuls actually do contain nicotine and frequently more nicotine than regular cigarettes. Juuling is harmful as well.