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Altria
Group Inc. said it would remove its electronic cigarette capsules from the market and stop selling most flavored electronic cigarettes in response to growing concerns about an increase in the use of similar products by minors.
Marlboro cigarette maker's decision comes after anti-smoking groups and US health officials, including the Food and Drug Administration, warned of a public health crisis related to the widespread use of cigarettes electronic by teens and other children.
Altria electronic cigarettes, sold under the MarkTen and Green Smoke brands, represent only a small share of the US market, currently dominated by the recent Juul Labs Inc. Juul sells its devices online in flavors such as mango and cucumber .
Altria accounted for 9% of the US e-cigarette market for the year ended Oct. 6, according to a
Wells Fargo
Nielsen data analysis. This does not include online sales. Juul accounted for 62%.
Altria said that it would continue to sell electronic cigarette products that resemble traditional cigarettes, but by limiting them to the aromas of tobacco, menthol and mint until the FDA approves of them. use of other flavors. These so-called cig-a-like devices are less popular in children than devices using filling capsules containing flavored liquids.
The company said that about 80% of its volume of third-quarter electronic cigarettes would remain on the market once the pod-based products and other flavorings removed.
Some analysts are worried about Altria's small market share of Altul and the cannibalization of the mainstream cigarette industry, where Marlboro still dominates the market.
Altria on Thursday posted a turnover up 1.6% from the third quarter of last year, but sales for the first nine months of the year decreased 1.2 % compared to last year, to stand at $ 19.3 billion. Marlboro cigarette shipments declined 5.8% in the last nine months, although Altria offset these declines with higher prices.
Altria said it would support federal legislation requiring a minimum age of 21 years for the purchase of all tobacco products, including electronic cigarettes. The federal law currently sets the minimum age at 18, although six states have raised it to 21 years.
"We believe that electronic steam-based products offer adult smokers an important opportunity to switch fuel cigarettes," said Howard Willard, president of Altria, in a letter to the FDA. "Yet the current situation with the use by young people of electronic vapor products, uncontrolled, could jeopardize this opportunity for adult smokers."
Write to Jennifer Maloney at [email protected]
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