Oct 31, 2019 - Health

Altria to take $4.5 billion writedown on Juul investment

Ursula Perano

Juul vapes — Photo: Justin Sullivan/Getty Images

Altria Group is expected to take a $4.5 billion writedown on its original $12.8 billion investment in e-cigarette maker Juul, AP reports.

The big picture: Altria, which owns Marlboro and other nicotine products, acquired a 35% stake in Juul in 2018, which has since dropped in value amid rising health concerns and deaths related to vaping.

Juul CEO Kevin Burns stepped down last month and was replaced by Altria executive K.C. Crosswaite. The e-cigarette company has since axed many of its flavored products in the U.S., which are argued to be marketed to youth and teen consumers.

Of note: The number of vaping deaths reached 37 as of Thursday, and illnesses have swelled to well over 1,000.

Go deeper... Expert Voices: Regulatory gaps are exacerbating the youth vaping crisis

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Altria to take $4.5 billion writedown on Juul investment

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