Altria To Discontinue Certain E-Vapor Products; To Take $200 Mln Charge In Q4

(RTTNews) - Altria Group Inc. (MO) said that it will discontinue production and distribution of all MarkTen and Green Smoke e-vapor products and VERVE oral nicotine containing products. The decision is based upon the current and expected financial performance of these products, coupled with regulatory restrictions that burden Altria's ability to quickly improve these products.

The company noted that it will refocus its resources on more compelling reduced-risk tobacco product opportunities.

Altria noted that its subsidiaries will begin working with their retailers, wholesalers, contract manufacturers and suppliers to ensure an orderly process. MarkTen cig-a-likes are currently in distribution at retail and through e-commerce. Green Smoke is primarily available on e-commerce with limited retail presence. VERVEis in limited distribution at retail and e-commerce.

Altria expects to record one-time pre-tax charges of approximately $200 million, the majority of which would be non-cash asset impairment charges, in the fourth quarter of 2018 as a result of this decision. These charges will be excluded from Altria's adjusted result.