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UNITED STATES: Altria Discontinues Several Reduced Risk Products
Altria Group announced the abrupt discontinuation of its entire MarkTen and Green Smoke e-vapor products, as well as its Verve oral nicotine-containing products.
Altria Group announced the abrupt discontinuation of its entire MarkTen and Green Smoke e-vapor products, as well as its Verve oral nicotine-containing products.
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RICHMOND, VA.—Altria Group, Inc. announced in early December that it would discontinue production and distribution of all MarkTen and Green Smoke e-vapor products along with Verve oral nicotine-containing products.
The decision was based upon the current and expected financial performance of these products, coupled with new regulatory restrictions that burden Altria’s ability to quickly improve these products, the company said in a statement. The first of several Mark- Ten varieties was rolled out nationally in the U.S. in 2014. The company said it will refocus its resources on more compelling reduced-risk tobacco product opportunities.
“We remain committed to being the leader in providing adult smokers innovative
alternative products that reduce risk, including e-vapor,” said Howard Willard, chairman and c.e.o. of Altria Group, Inc. “We do not see a path to leadership with these particular products and believe that now is the time to refocus our resources. We recognize the impact this decision has on our employees and business partners, which we do not take lightly.”
Altria’s subsidiaries will begin working with their retailers, wholesalers, contract manufacturers and suppliers to ensure an orderly process. MarkTen cig-a-likes are currently in distribution at retail and through e-commerce. Green Smoke is primarily available on e-commerce with limited retail presence. Verve is in limited distribution at retail and e-commerce.
As a result of this decision, Altria expects to record one-time pre-tax charges of approximately $200 million in the fourth quarter of 2018, the majority of which would be non-cash asset impairment charges. These charges will be excluded from Altria’s adjusted results.
