Altria Pivots Post-Juul: This Week in Cannabis Investing

Following its failed investment in Juul, Altria is exploring other smoke-free industries.

altria logo in background with njoy logo on smartphone
(Image credit: Getty Images)

Earlier this month, Altria Group (MO), the company behind Marlboro cigarettes, divested itself from Juul Labs, recording a $12.5 billion loss. 

In the past, Altria has benefitted from its position as an oligopoly player in the tobacco and nicotine industry. As a result, it enjoyed significant cash flows that led it down many pathways. MO has explored expanding beyond the core combustibles business, but the company's efforts have mainly been destructions of capital. Management and the board bear the most responsibility for these setbacks, but are more interested in shifting blame onto failed investments such as Juul. 

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Morgan Paxhia
Contributing Writer

Morgan Paxhia is Managing Director and Co-Founder of Poseidon Investment Management. With over 10 years experience in investing and finance, Morgan has developed a deep understanding of individual company analysis, portfolio construction, and risk mitigation. This content is not intended to provide any investment, financial, legal, regulatory, accounting, tax or similar advice, and nothing should be construed as a recommendation by Poseidon Investment Management, LLC, its affiliates, or any third party, to acquire or dispose of any investment or security, or to engage in any investment strategy or transaction. An investment in any strategy involves a high degree of risk and there is always the possibility of loss, including the loss of principal. This content should not be considered as an offer or solicitation to purchase or sell securities or other services. Any of the securities identified and described herein are for illustrative purposes only.  Their selection was based upon nonperformance-based objective criteria. The content presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Past performance is not indicative of future results.