PM - JUUL ban is a 'serious step back' for Altria's reduced-risk efforts - Stifel

The expected FDA order to remove JUUL products from shelves in the US is a major setback for Altria’s (NYSE:MO) efforts to move away from traditional cigarettes, per Stifel analyst Christopher Growe. Growe indicated the news of a ban was unexpected, as Altria’s (MO) efforts to cut flavors and lessen appeal to teens had shown to bear fruit in reducing underage use. He pondered the idea that “perhaps the FDA was always out to get JUUL” from the beginning. Regardless of the impetus, Growe indicated the proposed action effectively bans JUUL vapor products from the domestic market for the foreseeable future as an appeal is expected to be a lengthy process. “We contend this likely FDA announcement banning JUUL is a serious step back in the ability for Altria to participate in the vapor category,” he told clients. Growe added that Altria’s long-term opportunity to participate in the reduced-risk product

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JUUL ban is a ‘serious step back’ for Altria’s reduced-risk efforts - Stifel