Altria acquires NJOY to expand e-cigarette market share

Mar.07.2023
Altria acquires NJOY to expand e-cigarette market share
Altria acquires NJOY for $2.75 billion to expand its presence in the e-cigarette market, despite limited awareness of PMTA certification.

On March 6th, Altria announced its official acquisition of the electronic cigarette brand, NJOY, for a price of $2.75 billion, in an effort to expand its market share and influence within the electronic cigarette industry.


Altria has stated on its official website that there are currently a significant number of pending PMTA reviews in the US market, with most products being non-compliant. In contrast, NJOY has received PMTA certification for six of its products set for 2022. As the FDA strengthens enforcement and the US market becomes fully compliant, growth will be slow in the single digits, and NJOY will emerge as a competitive player due to its PMTA status.


At the APE exhibition, as seen in a photo sourced from 2FIRSTS' Washington News Center...


However, during the APE Expo in Florida from March 3rd to 5th, staff from 2FIRSTS Washington news center conducted interviews regarding Altria's acquisition of NJOY. The interviewed manufacturers expressed confusion about Altria's long-term strategic planning. This is because applying for PMTA certification requires a significant investment, yet the US market does not currently set any barriers for products that have not passed PMTA. Therefore, many brand manufacturers believe that PMTA is not important and that Altria's heavy investment for future development is unnecessary.


This claim appears to be corroborated at the retail level. 2FIRSTS visited electronic cigarette stores in Fort Lauderdale and Miami, Florida, where the owners and staff did not know what PMTA was, leading to no answer to 2FIRSTS inquiries about "why products that have not passed PMTA can still be on shelves for sale." When asked about the most popular products sold in the store, the answers were almost always brands like ELFBAR, FUME, HQD, and FLUM, all of which are reportedly not PMTA-approved.


2FIRSTS staff visit Florida's electronic cigarette shops | Image Source: 2FIRSTS


Despite limited awareness of PMTA among manufacturers and retailers, some brand owners are striving to obtain PMTA certification for long-term planning and compliance development.


According to an interview by 2FIRSTS with the well-known American brand ESCOBARS at the TPE exhibition in Las Vegas, the brand stated that they have spent more than 6 million US dollars on PMTA applications but have yet to receive any follow-up review notices.


The application process for PMTA is even longer. Liu Haixiao, the head of Platinum Overseas Brands, told 2FIRSTS that their company had started the PMTA application process several years ago and only recently received the FDA's acceptance letter.


According to Liu Haixiao's explanation, an acceptance letter is a communication from the FDA acknowledging receipt of a PMTA application for tobacco and mint flavored e-liquids. It confirms that the FDA has received the testing data submitted by the company. While the FDA has not yet issued a certification of compliance, the acceptance letter indicates that the company's application falls within the 2% of applications that have been reserved for potential legal sales.


The US testing institutions for e-cigarette liquid do not directly disclose monitoring results to businesses but instead submit the data to the FDA's backend system. Businesses must wait to be notified. If the results are not satisfactory, the entire process will be overturned, requiring businesses to start from scratch in order to obtain PMTA approval.


The long timelines and significant investments make it an uncertain, prolonged battle for companies. However, due to the nature of the United States' federal system, each state has the right to establish its own laws. As a result, FDA enforcement faces numerous obstacles, and PMTA enforcement has not been implemented, leading to a mismatch between regulatory compliance and market expectations.


Related articles recommend: [1] When the US market is fully regulated, NJOY will show its competitive advantage, according to Altria's prediction.


Altria has acquired NJOY, the third largest electronic cigarette company in the United States, for $2.75 billion.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Australian State Targets Illegal Tobacco Retailers With Tougher Closure Powers
Australian State Targets Illegal Tobacco Retailers With Tougher Closure Powers
According to Reuters, Australia’s state of Victoria introduced legislation to give police and the state tobacco licensing regulator stronger powers to shut businesses selling illegal tobacco, with non-compliant operators facing fines of more than A$2.4 million and up to 20 years in prison.
Jun.05
 Arizona Rules Extend Across Alternative Nicotine Supply Chain, With Licensing From 2028
Arizona Rules Extend Across Alternative Nicotine Supply Chain, With Licensing From 2028
Arizona Governor Katie Hobbs has signed HB 4001, bringing alternative nicotine products under a new state regulatory framework that will require maker and distributor licensing from 2028 and ban packaging designs that could appeal to minors.
Regulations
Jun.23
KT&G Q1 2026 Financial Results: Revenue at $1.156 Billion, E-Cigarettes to Launch Independent Overseas Expansion
KT&G Q1 2026 Financial Results: Revenue at $1.156 Billion, E-Cigarettes to Launch Independent Overseas Expansion
KT&G reports a 27.6% increase in Q1 operating profit, with traditional and new tobacco sectors driving growth.
May.07 by 2FIRSTS.ai
German Environment Minister Plans Bill to Ban Disposable E-Cigarettes This Year
German Environment Minister Plans Bill to Ban Disposable E-Cigarettes This Year
German Federal Environment Minister Carsten Schneider said he is preparing legislation to ban disposable e-cigarettes and will present a bill this year. Industry data estimated that legal e-cigarette sales in Germany rose by about one quarter in 2025 to €2.4 billion. Refillable devices are not expected to be affected by the ban.
May.09 by 2FIRSTS.ai
South Korea’s Cigarette Smoking Rate Falls to 17.9%, E-Cigarette Use Continues to Rise
South Korea’s Cigarette Smoking Rate Falls to 17.9%, E-Cigarette Use Continues to Rise
Data released by the Korea Disease Control and Prevention Agency (KDCA) showed South Korea’s conventional cigarette smoking rate fell to 17.9% in 2025, while heated tobacco and liquid e-cigarette use continued to rise, particularly among young adults and women.
Jun.01
 Former DHS Spokesperson Analyzes CBP’s $175 Million Illegal Vape Seizure
Former DHS Spokesperson Analyzes CBP’s $175 Million Illegal Vape Seizure
The Washington Examiner published an opinion article by Tricia McLaughlin, former Assistant Secretary for Public Affairs and spokesperson at the U.S. Department of Homeland Security, arguing that the Trump administration is strengthening enforcement against illegal vape supply chains through the FDA, CBP, and DHS.
Regulations
May.25