Vape fans are sucking up the news that some of their nicotine products are being vaporised from shelves following last week’s urgent government alert. And as e-cigarette chats spark up - including a Matariki #epicfail by Chinese-owned Relx (RLX) - in the US, officials have labelled youth vaping an ‘epidemic’. Even ‘cultural phenomenon’ Juul had their US market share blow up in their face. First, a 2020 TikTok teen backlash, now an FDA US ban on all Juul products due to their ‘disproportionate’ influence on youth vaping. 😤
Was Juul shareholder Altria (MO) left fuming? The Marlboro maker, whose mantra is ‘moving beyond smoking’, has seen a five-year 28% decline in their share price, and last week missed earnings estimates. But pointing to the company’s 13% shareholder return over the past year, some analysts hint of ‘business momentum’. Could Altria’s new partnership with Japan Tobacco to create smoke-free products fire up the company? 🚭
But where there’s smoke, there may yet be, erm, mist? An October report projects that the global vape and e-nicotine market may reach US$55.99 billion value by 2026, more than double over five years, from US$19.92 billion in 2021. But has this news mist Zig-Zag maker Turning Point Brands (TPB) shareholders? While the vape distributor of products with names like Tequila Sunrise beat analysts’ earnings expectations last week, they’re still down 45% from their 52 week November 2021 high of $42.62.
Vapes’ future forecast may have also blown past vape products distributors British American Tobacco (BTI) and Philip Morris International (PM). They’ve both been smoked over the past five years, down 39% and nearly 13% respectively, reportedly due to decreasing popularity of tobacco, and vape margins squeezed by high inflation and supply chain issues. We say zig, you say zag. 🔀