Why Altria Could Win With E-Cigs This Time
The looming demise of Juul Labs represents a big opportunity for tobacco giant Altria Group (NYSE: MO) to reenter the electronic cigarette market.
Having previously given up its own ambitious e-cig growth strategy in exchange for an ownership stake in Juul, which at the time was an industry colossus with a 75% market share, Altria has watched the value of its $13 billion investment go up in smoke. At the end of June, the cigarette maker had written down the value of Juul to a meager $450 million, a 96% loss in value.
Now Altria has dissolved its noncompete agreement with Juul, meaning it is free to enter the market in a big way. Analysts expect it will try to buy its way back in rather than develop its own products, and though Altria has been unsuccessful twice before with that strategy, the tobacco company just might be able to win this time.
Source Fool.com
