Oct 31, 2019 - Health

Altria to take $4.5 billion writedown on Juul investment

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.

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