In response to a warning by FDA Commissioner Scott Gottlieb to prove that teen vaping can be prevented, Fontem Ventures, a unit of tobacco company Imperial Brands, said it will be raising the minimum age requirements to buy pods on its website to 21 across the US.
Similarly, following a meeting with FDA commissioner Scott Gottlieb which took place last month, tobacco company Altria, said that whilst waiting for the agency’s verdict, it would stop selling the following items; MarkTen Elite pod-based products, Apex by MarkTen pod-based products, All favored variants of MarkTen and Green Smoke “cig-a-like products” except tobacco, menthol and mint varieties.
Plummeting tobacco shares
Following these efforts, tobacco shares have been plummeting considerably. Last week, shares in BAT, the sixth-biggest company in the FTSE 100 and maker of Lucky Strike, Dunhill, Rothmans and Benson & Hedges, fell by 10.6%, equating to a drop from £76bn market value to £68bn. While the share price of Imperial Brands, maker of Lambert & Butler, Davidoff, Gauloises and John Player Special, has dropped by over 3%, which equates to £600m.
Read Further: CNBC