Dive Brief:

• About 65% of retailers expect NJOY vaping devices to “perform better and gain market share” under ownership of tobacco giant Altria, according to a recent Nicotine Nuggets survey from Goldman Sachs. 
• Many respondents said they expect Altria to have “an aggressive promotional strategy” to build product awareness, as the tobacco giant is expected to launch NJOY’s ACE product at over 70,000 U.S. retailers, or roughly half of all outlets, through the next year.
• NJOY is one of the few companies whose vaping products have received marketing approval from the U.S. Food and Drug Administration.

Dive Insight:

NJOY currently owns six of the 23 e-cigarette items that can be legally marketed and sold in the U.S., including the NJOY ACE e-vapor device and five tobacco-flavored items. It also has two other products, notably in the contentious menthol category, awaiting review.

The ongoing FDA efforts to crack down on non-compliant products should boost e-cigarette volumes, according to the Goldman Sachs survey. Thanks to having more than a quarter of the legal products so far, NJOY could be a big winner from that shift.

Retailers who expect growth from NJOY foresee improved marketing from Altria, along with broader distribution and greater shelf allotment. One respondent said they expect Altria to “come in very strong with promotions at the outset to gain presence.”

Those who weren’t as upbeat about NJOY’s prognosis noted the recent infringement complaint Juul brought against NJOY, the company’s history of bankruptcy and concerns about Altria’s leadership after its rocky investment in Juul. 

Distribution of NJOY devices is expected to start in September and expand across the U.S. through the early part of 2024. 

In other results, more than 70% of retailers surveyed expect that if a federal menthol ban is enacted, it will hurt their volumes by driving some customers to the black market, while others may switch tobacco products. The FDA is expected to finalize this ruling in August.