Altria continues its expansion.
In its latest move into expansion within the realm of alternatives to traditional cigarettes, Altria, the maker of Marlboro, has injected a $12.8 billion USD investment into JUUL, the popular e-cigarette company that, just weeks ago, was facing major setbacks that came as a result of stricter Food and Drug Administration regulations that were attempting to curb the alarming rate at which children and teenagers were using e-cigarettes.
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JUUL was ordered to stop the sale of its flavored pods and had to put a halt on all social media campaigning in order to meet the FDA’s demands. Now, Altria has acquired a 35% stake in the company. Under the new deal, Altria will no longer be able to work with any other vape cigarette brand, nor will it be able to sell or transfer shares up to six years. Altria and JUUL will also be offering a $2 billion special dividend to its 1,500 employers–an average compensation of $1.3 million.
Just a few weeks ago, Altria announced its $1.8 billion investment into Canadian cannabis company Cronos, buying a 45% stake in the company, with plans to increase to 55% over the next five years. These moves mark Altria’s latest to fight against waning tobacco use as users turn to other forms of recreation.