April 14, 2021

The foreseeable veto on menthol cigarettes is dragging Wall Street cigarettes

The foreseeable veto on menthol cigarettes is dragging Wall Street cigarettes



The foreseeable veto that the Food and Drug Administration (FDA) will announce next week to the sale of menthol cigarettes has dragged the tobacco companies on Wall Street, which were left today between a 1.7 and a 2.7%.

In addition, several local media reported last week that the federal agency was studying limiting sales of electronic flavored cigars because of its widespread use among youth and adolescents.

In fact, the Juul company, which sells the best-selling cigarettes of these characteristics, announced today that it will stop selling in stores its fruit-flavored devices such as mango or cucumber to curb "epidemic" levels -according to the FDA- of the "vapeo" (as this practice is called) among adolescents, according to The Wall Street Journal.

On the other hand, these flavors can be purchased through their website, as it has age verification technology to prevent teenagers from consuming them.

These cigars, similar in shape to a USB stick, can be easily obtained in stores and public health officials are extremely concerned about the high percentage of African-Americans who are addicted to these cigarettes.

In September, the FDA already required five companies – Juul, Vuse, MarkTen, Blu E-Cigs and Logic – to send their plans within 60 days to avoid employment among adolescents.

The first to announce its plans was Vuse, owned by the tobacco group Altria, which announced its intention to stop selling its electronic cigarettes and to remove most of its flavors from the market.

This foreseeable measure of the FDA has caused that the company today lost near 2% of its value in stock market until the 60 dollars by action, which implies an accumulated loss of 8,21% in the last five sessions.

The company British American Tobacco was left on Wall Street more than 2.73 3%, losing more than a dollar per share to 37.04, which chains five days of losses in which the company's values ​​have depreciated almost 18%.

The multinational Philip Morris also saw its value fall in the financial markets, leaving around 1.8%, with a loss of a dollar and a half in its shares to 86.4 dollars.

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