The second smoke-free product in the works is On Plus, a nicotine pouch, which aims to deliver a more traditional taste, similar to snuff, and is believed to appeal to dippers and oral tobacco users that would like a product that does not require spitting.
Due to the 2018 deal which gave Altria a 35% stake in Juul, the tobacco company has not been able to conduct any business with any other vape brand if not through Juul. As a result of all the lawsuits and the pending PMTAs situation that Juul has faced in the last few years, Altria’s stock had dropped .
To this effect, reported FT recently, the tobacco company has swapped its minority stake in Juul Labs for intellectual property rights to some of the manufacturer’s heated tobacco prototypes. Altria chief executive, Billy Gifford, said that the move was the “appropriate path forward for our business”.
Altria moves from Juul to NJOY
Subsequently, Altria MO -0.24% Group Inc. has recently announced it is will be acquiring NJOY Holdings Inc. for at least $2.75 billion. NJOY is a safer bet than Juul, as last May the FDA granted NJOY LLC marketing permits to for its Ace closed vape device and three accompanying tobacco-flavoured pods. This authorization allows these products to be legally marketed across the US, even though this does not mean that these products are safe or “FDA approved.”
Altria Has Been Developing New Alternative Nicotine Products
