British American Tobacco plunges on possible USA move to ban menthol cigarettes

CRACKDOWN The FDA is looking to ban menthol cigarettes in the US

Rothmans and Lucky Strike owner British American Tobacco (BAT) has seen billions of pounds wiped off its market value after a report claimed U.S. regulators are planning to ban menthol cigarettes.

Menthol cigarettes account for about a quarter of BAT's U.S. cigarette sales, making it a bigger casualty of the potential ban than its competitors Altria and Imperial Brands.

Cigarette shares plummeted today as investors responded to reports that the US Food and Drug Administration (FDA) is planning to crack down on menthol cigarettes.

E-cigarette flavors such as mint, mango, and cucumber are much more appealing to teens than the harsh tobacco flavor of regular cigarettes - making it immensely easier for young people to get hooked on the addictive chemical.

The process of finalizing a ban on menthols would reportedly take a year or longer and another year after that for the ban to be enforced, according to the Journal.

The potential menthol ban won't have a near-term effect on the markets, according to analysts. Clove cigarettes were previously taken off the market, and now the agency is taking a tougher approach to alternatives, too.

Over 1200 saudi-backed mercenaries killed by Yemen army
Four employees in Hodeida port who requested anonymity told AFP that a rebel commander had been killed in the attack on Monday. The port's deputy director, Yahya Sharafeddine, said the main entrance to the docks had been hit but was fully functioning.

Ranveer, Deepika finally tie the knot in Italy
It all happened when Ranveer and Deepika dropped in at Farah Khan's residence before leaving for Italy for their big day. Moreover, according to reports in the Indian media, the couple will release the pictures at 6pm today.

David Pearson, NASCAR's Silver Fox, has died at 83
In the three full seasons Pearson qualified for the then-Grand National Series championship - 1966, 1968 and 1969 - he won it. NASCAR legend David Pearson died Monday aged 83, the Wood Brothers Racing Team confirmed via their official Twitter account.

The Wall Street Journal followed up with its own report Friday that said the FDA could propose a ban on menthol cigarettes.

A federal law banned flavoured cigarettes back in 2009, but the tobacco companies managed to win an exception for menthol, which was by far the most popular flavour.

"While many menthol smokers would likely move over to non-menthol products, it would still be a major blow".

Steadily declining numbers of smokers paired with an increasingly hostile regulatory environment for tobacco products have troubled shareholders for some time now.

After the announcement of the intentions of the BAT shares fell almost 9 percent.

Approximately 21 percent of Altria's volume is menthol and it accounts for around 18 percent of total profit, while about 20 percent of Imperial Tobacco's volume is menthol, the analyst said. They have had only two annual declines in the past 19 years. The Winston maker gets about 15% of earnings from menthol brands such as Kool and Salem in the United States, according to Jefferies.

Related News:



Most liked

EE to launch 5G connectivity in 16 United Kingdom cities from 2019
Each 5G site will boast transmission links of up to 10Gbps and connect to the Petabit-class BT 21CN backbone network. EE will introduce 5G smartphones along with multiple partners alongside an EE 5G Home router for 5G broadband.

Sir Elton and John Lewis unite in Christmas advert
The firm said reports Sir Elton had been paid £5m were "wildly inaccurate" and said some of his fee went to his charitable trust. They've produced some truly heartwarming adverts over the years, check out some of the best John Lewis Christmas adverts .

Reports of Asiya Bibi leaving Pakistan ‘false, baseless’
Following Bibi's release, the TLP vowed to return to the streets if she was allowed to leave the country. Her lawyer, Saiful Mulook, fled to the Netherlands soon after the verdict, citing death threats.

SAP drops $8 billion to buy Qualtrics
SAP, led by Chief Executive Officer Bill McDermott, pre-empted the USA enterprise software company's plans to go public. They want to deal with their customers in every channel, they want to fulfill, and that requires operational data.

Chelsea insist they have not broken Federation Internationale de Football Association rules on underage transfers
It is alleged that Traore played 25 matches for Chelsea at under-16 and under-18 level without being registered by the FA. It is unclear whether or not the cases against Chelsea or the other four Premier League clubs are close to completion.

Man United target confirms he wants to leave
As the Express report , Maurizio Sarri's side are the second favourites to sign Arnautovic, narrowly behind Manchester United . However Arnautovic, who has his brother Danijel as his agent, has conceded he would like to play at a higher level.

Afridi in hot waters again after controversial comments on Kashmir
Earlier this year, he tweeted on the matter and wrote, "Appalling and worrisome situation ongoing in the Indian Occupied Kashmir". He said that another report on the state of human rights in Kashmir was being compiled by a committee of the European Parliament.

Oil sinks 7% into bear market on oversupply fears
Crude extended an earlier decline after the release of the OPEC report, trading as low as $66.65 a barrel, the lowest since March. Every dollar per barrel change in crude oil prices impacts the import bill by Rs 823 crore ($0.13 billion).

Blake Snell, Jacob deGrom named Cy Young Award winners
Snell allowed just two or fewer runs in 27 of his 31 starts, winning nine straight down the stretch with a 1.03 ERA in that span. The AL Cy Young was one of the toughest awards to pick this year , as Snell, Verlander and Kluber each had compelling cases.

Steelers Players Raid Le’Veon Bell’s Locker After He Doesn’t Show Up
With Bell's career in Pittsburgh nearly certainly over, it appears his teammates have moved on as well. Linebacker Bud Dupree even thanked Bell for the new pair of Jordan Brand cleats.

Paul Pogba dismisses Juventus return says Manchester United is 'home'
Real Sociedad star Adnan Januzaj has blamed Manchester United manager Jose Mourinho for his premature ending at Old Trafford. I think they need to make the right decisions to win games.

$1.5 Billion Mega Millions Jackpot Is Still Unclaimed 3 Weeks After Drawing
Check your numbers: victor announced in record $1.6 billion Mega Millions lottery, the largest jackpot in the history of the game. It's been almost three weeks since that drawing and lottery officials said the victor (s) have not yet come forward.

British Tourist Dies From Rabies After Being Bitten By Cat in Morocco
The last recorded rabies case in Britain was in 2012, when a British grandmother was bitten by her son's pet dog in India. This is an important reminder of the precautions people should take when travelling to countries where rabies is present.

With eyes on prize, Butler arrives, shares Sixers' vision
Butler says that, despite the amount of attention that's been given to what his next move would be, his focus never wavered. It wasn't a changed view of Markelle's future". "There are some really talented teams [in the Eastern Conference]".

Pence tells Suu Kyi persecution of Rohingya inexcusable
He said instead, "We are anxious to hear about the progress in making it possible for the Rohingya to voluntarily come home". But the treatment of the Rohingya and the response of Suu Kyi's government have fuelled widespread criticism.