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Money News

Crown Juul: Tobacco Giant Altria Looks to Invest in E-Cigarette Maker Juul

November 29, 2018

Upstart Juul may be getting the tobacco industry’s attention.

1 min read

Virginia-based Altria Group, one of the world’s largest tobacco companies, is looking at a possible investment in Juul Labs, the largest e-cigarette company in the U.S., according to reports.

Altria, formerly known as Philip Morris, which produces  Marlboro cigarettes and other tobacco products, is looking to get a foothold in the e-cigarette market, as traditional cigarette smoking has declined significantly over the years.

Juul, on the other hand, has become the dominant e-cigarette company in the U.S. with nearly 70% market share.

Here’s what you need to know:

The global e-cigarette market is expected to increase to more than $86 billion by 2025 from about $14 billion in 2017, according to industry analysts. Meanwhile, the total number of adult smokers in the U.S. decreased to 15.5% in 2016, or around 38 million people, from 20.9% in 2005, according to the Centers for Disease Control.

There are some butts about it

Juul is a private company, and it has recently faced scrutiny from the Food and Drug Administration as “vaping” among teenagers has soared.

Specifically, the FDA is investigating Juul’s marketing techniques as they relate to minors. As a result, in November Juul suspended sales of some of its products.

Keep up with the news from the world of business and finance by subscribing to the Stash newsletter.

By Sam Becker
Sam Becker is Stash's financial writer.

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