Altria Group's (MO) investment in e-cigarette manufacturer Juul Labs (JUUL) represents a potential contingency plan, should the volume of combustible cigarettes sold continue to decline. However the past few weeks have seen JUUL come under heavy fire. This article aims to look at the recent potential threats to the success of JUUL and if they are anything to be worried about. Secondly, I discuss why strong earnings for Phillip Morris International (PM) don't necessarily imply strong earnings for MO.

Late June saw news that San Francisco's Board of Supervisors had unanimously voted to ban the sale of e-cigarettes to those in San Francisco. San Francisco Mayor, London Breed, soon signed the ordinance containing the proposed changes meaning the ban would become effective 30 days from that date and then operative after another six months.

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