Nov 28, 2018 - Health

Marlboro maker Altria in talks to take minority stake in Juul

Marisa Fernandez

Someone smoking Juul vape — Photo: Eva Hambach/AFP/Getty Images.

Altria Group, one of the world's largest producers and marketers of tobacco and cigarettes, is reportedly in talks to take a significant minority stake in e-cigarette company Juul, reports CNBC.

The big picture: Though Juul is reconstructing its marketing plan to curb usage among teens, the company still has a majority of the market share in e-cigarettes and is valued at $16 billion. The business for e-cigarettes is expected to rise at an annual growth rate of 17%, higher than 12% in 2017, according to a Wells Fargo analysis of Nielsen data.

By the numbers

Traditional cigarette smoking is decreasing in the U.S. Nearly 38 million, or 15.5%, of American adults smoked cigarettes in 2016, which is down from 20.9% in 2005, according to the Centers for Disease Control and Prevention.
Altria also sells e-cigarettes, but Juul beats its sliver of the market share along with other competitors like British American Tobacco and R.J. Reynolds.

Yes, but: If Altria goes through with investing more in the controversial e-cigarette market, the price could be steep considering the startup's bolstering valuation.

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Marlboro maker Altria in talks to take minority stake in Juul

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