The San Francisco-based e-cigarette company, which is valued at USD 38 billion, will remain fully independent, according to the company announcement.
Altria said that in addition to the investment, through a service agreement, it would support Juul “expand its reach” through its sales organisation, 230,000 retail locations and experience in logistics and distribution, according to the press release. In addition to that, the tobacco giant said it would allow the vapour company to use Altria’s database to directly communicate with adult smokers through mailings, through cigarette pack inserts and shared retail shelf space.
Howard Willard, Altria’s Chairman and CEO commented on the deal in a statement saying, “We are taking significant action to prepare for a future where adult smokers overwhelmingly choose non-combustible products over cigarettes by investing USD 12.8 billion in Juul, a world leader in switching adult smokers.
“Through Juul, we are making the biggest investment in our history toward that goal. We strongly believe that working with Juul to accelerate its mission will have long-term benefits for adult smokers and our shareholders.”