Fears of U.S. menthol ban burn hole in Big Tobacco

Tobacco shares go up in smoke amid US crackdown plan

British American Tobacco's (BAT) share price plunged 11% to R555 on Monday morning, wiping R176bn off its market capitalisation, on a report the U.S. government is considering banning menthol cigarettes.

Last year, BAT re-entered the United States market after a 12-year absence with the $47bn acquisition of Reynolds, owner of brands including Pall Mall, Newport and Camel, in a move that created the world's biggest tobacco company and was expected to speed up the development of e-cigarettes and vapes.

Shares of tobacco stocks were lower Monday morning amid reports that the Food and Drug Administration will announce a proposal to ban menthol cigarettes as soon as this week. The FDA may impose limits on the sale of most e-cigarette products in the USA, the Washington Post reported last week. The final rule banning menthol could take a year or more, and the enforcement could take another year, sources said.

E-cigarette makers argue the devices help adult smokers give up cigarettes - potentially saving them from related illnesses - by giving a nicotine fix without the smoke and smell of combustible cigarettes.

Dr. Scott Gottlieb, the agency's commissioner, would not comment publicly on the proposal on Friday.

Not all analysts think a ban is likely.

Tobacco companies would probably mount a legal challenge that would delay the process, Gerry Gallagher, an analyst at Deutsche Bank, also said.

More news: New Zealand to host 2021 Women's World Cup

It also highlights that despite the move towards vapour and heated-tobacco products, BAT is still heavily reliant on its cigarettes business.

In June, San Francisco voters approved a proposition to ban the sale of flavoured tobacco products, including menthol cigarettes, in a battle that saw tobacco company RJ Reynolds, a subsidiary of Reynolds American, contribute $12m against the measure.

The major tobacco companies did not comment on the Times' story.

British American Tobacco fell 9% to £30.15 while Imperial Brands declined 3.8% to £36.44 on the speculation.

Menthol cigarettes may soon become a thing of the past.

After the announcement of the intentions of the BAT shares fell almost 9 percent. The proportion is about 20 percent for Altria, according to the firm.

Related News:

  • Raj scores fifty as India post facile win over Pakistan

    Raj scores fifty as India post facile win over Pakistan

    In the first ball of the 18th over, Bismah Maroof and Nida Dar were at the crease when they were docked 5 runs for the first time. Australia beat Ireland by nine wickets: Ireland 93-6 in 20 overs (Kim Garth 24; Ellyse Perry 2-12).
    Division III basketball player takes flagrant shot at opponent's head

    Division III basketball player takes flagrant shot at opponent's head

    Platt checked to see if the baseline official was looking and then threw a forearm/elbow at Tenaglia's head. In addition, the case is under review by Fitchburg State for consideration of further sanctions.

    Harry Potter: Wizards Unite mobile game gets trailer, opens for signups

    Last year, nearly to the day, we learned about Niantic's plans for an augmented reality Harry Potter game. But the good news is that more time means a better game and we have a trailer to help pass the time.
  • U.K. urged to give asylum to Asia Bibi

    U.K. urged to give asylum to Asia Bibi

    The charge also carries the death penalty and critics say the controversial blasphemy law is abused to settle religious scores. An argument took place after two Muslim women refused to drink from the same container as Bibi , who is Roman Catholic.
    Ottawa talking with Pakistan about bringing acquitted Christian to Canada

    Ottawa talking with Pakistan about bringing acquitted Christian to Canada

    An argument took place after two Muslim women refused to drink from the same container as Ms Bibi, who is Roman Catholic. Not long after, Pakistan's minister for minority affairs, Shahbaz Bhatti, was shot dead for making similar remarks.
    Shahid Afridi: Pakistan can not  manage its own four provinces, doesn’t need Kashmir

    Shahid Afridi: Pakistan can not manage its own four provinces, doesn’t need Kashmir

    Former cricketer Shahid Afridi created controversy Wednesday by saying Pakistan does not need Kashmir and that it can't even handle the four provinces it has, according to several media reports.
  • Wayne Rooney to be England captain during farewell appearance

    Wayne Rooney to be England captain during farewell appearance

    Reminiscing his times in Manchester, Rooney said: "I left with great memories". "I tend to just play down the middle". Leaving Manchester United was a tough call but I know I made the right decision in coming home to Everton .
    Giants beat 49ers 27-23

    Giants beat 49ers 27-23

    Film study can come later, despite the 2-7 record, these guys had worked hard for four months, and they deserve a pat on the back. His passer rating was 110.7 and no doubt he staves off talk that he will lose his starting job, at least for another week.
    Toyota's new Corolla is coming, and it looks aggressive as heck

    Toyota's new Corolla is coming, and it looks aggressive as heck

    The Corolla has been long overdue for a major redesign, so fans will probably be excited to see what Toyota has in store for them. It will be making its global premiere along with the China-specific Levin sedan, which is an upmarket version of the Corolla.
  • With Butler Gone, Wolves Give Warm Welcome To Newbies

    With Butler Gone, Wolves Give Warm Welcome To Newbies

    You know how I go about what I go about. "As long as he's going hard and giving his all out every day, the guy has my respect". Instead, Fultz will now serve as Simmons' primary backup, likely getting somewhere in the range of 10 to 15 minutes a night.
    McDonald’s manager beaten, choked by woman over ketchup

    McDonald’s manager beaten, choked by woman over ketchup

    The woman is described as being Hispanic and around 20 to 25 years old. "Obviously, we take these things seriously", he said. He added: "She's the one that committed the crime".
    Marvel & Disney Remember Stan Lee in Touching Tribute Video

    Marvel & Disney Remember Stan Lee in Touching Tribute Video

    The Walking Dead's Jeffrey Dean Morgan was among the many people who criticised the actor's sarcastic words. While many saw this as a heartfelt way to say good-bye, Armie thought these efforts were self-aggrandizing.


Most liked

John Lewis Christmas ad 2018 starring Elton John
John Lewis has unveiled its festive advert for 2018, and they've gone for a different style than in previous years. It ends with the singer running down the stairs aged four to unwrap a piano, a gift from his grandmother.

Sony could be making a controller with a touchscreen
PlayStation are telling fans to stay tuned in the coming days as they unleash their Black Friday offers. The headline deal of Sony's Black Friday is a PS4 Slim console bundled with Spider-Man for $199.99.

Rory McIlroy may quit European Tour membership in 2019
McIlroy's future Ryder Cup captaincy prospects will be in jeopardy if he sits out the 2019 European season. There are two main prizes on offer: the DP World Tour Championship title and the Race to Dubai crown.

Chelsea insist they have not broken Federation Internationale de Football Association rules on underage transfers
It is being claimed that Chelsea could miss out on four transfer windows, which all-but makes it a two-year ban. Real, in turn, accused CAS of "lacking the courage to revoke the ruling entirely".

UAE supports 'early convening' of UN-led Yemen talks in Sweden
The Hodeida campaign has sparked fears of a new humanitarian crisis in Yemen, where 14 million people face the risk of starvation. Hodeida Port is under a near-total blockade by Saudi Arabia and its allies, who accuse Iran of smuggling arms to the Houthis.

QBullet: SC Reserves Verdict on Rafale; PM Modi Meets US VP Pence
The Indo-Pacific region also came up during the discussion on Wednesday between Prime Minister Modi and US Vice President Mike Pence .

Google Services Disrupted as Internet Traffic Diverts to China
Experts say China, in particular, has systematically hijacked and divert US internet traffic. Google told The Wall Street Journal that the incident did not compromise any data.

Global oil market faces surplus in 2019 as demand growth slows
Together with Russian Federation and other non-OPEC producers, OPEC had agreed in June to boost supply after pressure from U.S. President Donald Trump to lower prices, partially unwinding output cuts that began in January 2017.

Adnan Januzaj accuses Jose Mourinho of letting him down at Manchester United
That way tiki-taka is easier'. "That is why I will go a week to Manchester to see Mourinho train and to ask him a lot of things". But, Maradona has overlooked that fact and remains one of Mourinho's biggest fans.

Ariana Grande's "Thank u, next" explores self acceptance
Ariana Grande has shut down reports that she's releasing a new album on Friday BUT has confirmed she is releasing an album soon. He and Grande dated for two years, and since his death, Grande has posted tributes to him on her social media accounts.

A Massive #ThisIsNotConsent Protest Takes Place At The Spire On Wednesday
The protesting women also clearly stated that what a woman wears does not equal consent hence the hashtag #ThisIsNot consent. Amid increasing media attention, Irish social media users expressed outrage at the remarks in court.

Chilling Adventures of Sabrina's Christmas special coming to Netflix
The streaming service will offer original content and some holiday classic movies for subscribers. Netflix officially announced that there will be a winter holiday special episode.

SF Doctor Fires Back at NRA's Cheap Shot on Twitter
Whether or not the shooter should have the gun is not really our concern: that is what the law profession is for. The mental anguish of the families never goes away, and we are the ones who treat them when it gets too much.

Channing Tatum gushes about Jessie J in sweet Instagram post
He also posted a video on his Instagram Story, writing, "She went off tonight!" " Channing is her biggest fan", a source said. Sources also informed us that he was dancing and at one point gave Jessie's mum a thumbs up in greeting.

Sisi Takes Part on 'Mini-Summit' on Libya in Italy
But diplomatic wrangling between Italy and France also hangs over this summit. Egypt's President Abdel Fattah al-Sisi arrived on Monday evening.