Altria Group announced that it has permanently removed its NJOY ACE e‑vapor product from retail shelves, citing a U.S. International Trade Commission (ITC) ruling that bars the company from importing and selling the product until the relevant patents expire in 2034 and 2037.
The ITC decision stemmed from a patent dispute with Juul Labs. In April 2025, the commission ruled in favor of Juul, prohibiting Altria and NJOY from selling the ACE line because it infringed on Juul’s patents. The prohibition has been in effect since April 1, 2025, and the company has not planned a re‑entry in 2026.
Altria’s Q4 2025 earnings reflected the impact of the discontinuation. Net revenues fell 2.1% to $5.8 billion, and reported diluted earnings per share dropped 63.1% to $0.66. Adjusted diluted EPS remained flat at $1.30, while a $1.3 billion non‑cash impairment charge related to e‑vapor goodwill and intangibles was recorded. The company reaffirmed its 2026 adjusted diluted EPS guidance of $5.56 to $5.72, assuming the ACE line will not return.
The decision frees resources for Altria’s “Moving Beyond Smoking” strategy, which prioritizes oral nicotine pouches—particularly the “on!” brand—and heated tobacco products. The company’s heated‑tobacco joint venture with JT Group and its own SWIC capsule line are expected to absorb the capacity and capital previously allocated to the ACE product.
Altria CEO Billy Gifford said the ITC ruling “undermines public health, especially in a market overrun by illicit products,” and noted that “the proliferation of illicit disposable products, slow FDA authorizations, and the intellectual‑property landscape remain significant headwinds.” He added that the company is “working on a pipeline of products to drive to that future” while maintaining a measured approach to e‑vapor investments.
Market reaction to the announcement was muted, largely because it coincided with the company’s Q4 2025 earnings release. Investors focused on the earnings miss and the unchanged guidance rather than the product exit, which was seen as a routine adjustment to a challenging regulatory environment.
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