Reynolds American's Vaping Products Faces FDA Hurdle, Raises Concerns Over Youth Appeal
Portfolio Pulse from Vandana Singh
The FDA has ordered Reynolds American, a subsidiary of British American Tobacco PLC (NYSE: BTI) (OTC: BTAFF), to stop selling menthol-flavored versions of its Vuse Alto e-cigarette. The product line accounted for approximately 40% of the U.S. e-cigarette market in retail stores over the past year. The FDA cited insufficient evidence of public health benefits for adult smokers that outweigh the risks to young individuals. The menthol flavor made up about 29% of e-cigarette sales in the past year, amounting to $1.6 billion.
October 12, 2023 | 5:45 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
The FDA's order to stop selling menthol-flavored Vuse Alto e-cigarettes could negatively impact British American Tobacco's revenues, as the product line accounted for a significant portion of the U.S. e-cigarette market.
The FDA's order directly affects Reynolds American, a subsidiary of British American Tobacco. The menthol-flavored Vuse Alto e-cigarettes accounted for a significant portion of the U.S. e-cigarette market, and their removal from the market could lead to a decrease in British American Tobacco's revenues.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The FDA's order to stop selling menthol-flavored Vuse Alto e-cigarettes could negatively impact British American Tobacco's revenues, as the product line accounted for a significant portion of the U.S. e-cigarette market.
The FDA's order directly affects Reynolds American, a subsidiary of British American Tobacco. The menthol-flavored Vuse Alto e-cigarettes accounted for a significant portion of the U.S. e-cigarette market, and their removal from the market could lead to a decrease in British American Tobacco's revenues.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100