Connect with us

Real Estate

Marlboro owner Altria buys one third of vape company Juul

Editor

Published

on

[ad_1]

Marlboro cigarette maker Altria Group Inc on Thursday announced it would pay $12.8 billion to take a 35 per cent stake in Juul Labs Inc, a marriage between an old-line tobacco giant and a fast-growing electronic-cigarette rival looking to make inroads among smokers.

The deal values San Francisco-based Juul at $38 billion, more than double the roughly $16 billion valuation it fetched in a July private funding round, highlighting what Altria sees as its next phase of growth in the face of declining smoking rates and cigarette sales in the United States.

“We are taking significant action to prepare for a future where adult smokers overwhelmingly choose non-combustible products over cigarettes,” Altria COE Howard Willard said in a statement.

For Juul, which has risen swiftly over the last three years to become the U.S. market leader in e-cigarettes, the Altria investment is expected to give it more prominent distribution in convenience stores and other traditional retail channels.

The companies said Juul will be able to reach Altria’s customers through advertisements in traditional packs of cigarettes as well as direct mailers to customers.

Altria also brings years of lobbying expertise in Washington that could benefit Juul as the company navigates heightened federal scrutiny over its products’ popularity among teenagers.

“Our success ultimately depends on our ability to get our product in the hands of adult smokers and out of the hands of youth,” Juul Chief Executive Kevin Burns said in a statement Thursday, adding that “this investment and service agreement helps us do just that.”

Under terms of the deal, Altria is subject to a standstill agreement under which it may not buy additional Juul shares above its current interest. Altria has also agreed not to sell or transfer any Juul shares for six years from the closing of the deal.

The deal, which is subject to antitrust clearance, would give Altria the right to nominate directors representing a third of Juul’s board, the cigarette giant said.

Only about 14 per cent of American adults still smoke, but vaping is more common among young people, such as this woman shown holding a Juul vape device while looking at her iPhone. (Gabby Jones/Bloomberg)

The company also said that it would participate in the e-vapor category only through Juul for at least six years.

Juul’s devices, which vaporize a nicotine-laced liquid and resemble a USB flash drive, grew from 13.6 percent of the market in early 2017 to more than 75 percent this month, according to a Wells Fargo analysis of Nielsen retail data. In its release Thursday, Altria said Juul represented approximately 30 percent of the U.S. e-cigarette space, when factoring in online sales and products in specialty stores such as vape shops.

Federal data released last month showed a 78 percent year-on-year increase in high school students who reported using e-cigarettes in the last 30 days, coinciding with the rise in Juul’s popularity.

The U.S. Food and Drug Administration last month announced new curbs on sales of flavored e-cigarette products, including Juul’s mango and cool cucumber, amid fears that the products could lead a new generation into nicotine addiction.

Juul has boosted its own lobbying spending, spending $890,000 so far in 2018, according to the Center for Responsive Politics. That is still far less than Altria’s more than $7 million toward lobbying this year, making it the biggest spender in the U.S. tobacco industry.

One unknown is how the deal could affect Juul’s reputation in the marketplace. In many ways the company positioned itself as the foe of big tobacco, saying in job postings that it was “disrupting one of the world’s largest and oldest industries” and “driving innovation to eliminate cigarettes.”

Juul CEO Burns acknowledged that in announcing the deal, calling Altria a “seemingly counterintuitive” investor.

“We understand the controversy and skepticism that comes with an affiliation and partnership with the largest tobacco company in the U.S. We were skeptical as well,” he said, adding that the company ultimately was convinced the deal could “help accelerate our success switching adult smokers.”

Tobacco companies including Altria have been investing in e-cigarettes as U.S. smoking rates decline, but those products have lost significant market share over the last year as Juul’s popularity has surged.

Altria said this month it would discontinue some of its e-cigarette brands, based on their financial performance and will take a related pre-tax charge of $200 million in the fourth quarter.

Federal data from earlier this month showed 14 per cent of U.S. adults smoked cigarettes, the lowest level ever recorded.

Altria’s cigarette volumes declined by 6.3 per cent for the nine months of 2018, from a year earlier. The company’s share price has fallen by nearly 30 per cent over the last year.

Some analysts on Thursday expressed concern that Altria was paying too high of a price. A note from Stifel said the deal should help Altria “address the changing consumer attitudes toward nicotine” but that “the price paid offsets most of the future potential benefit” from a Juul investment.

Altria on Thursday also announced a cost-cutting program that includes workforce reductions and reduced third party spending, to save $500 million to $600 million annually by the end of 2019.

The company expects pre-tax charges of about $230 million to $280 million, or nine to 11 cents per share, the majority of which will be incurred in the fourth quarter of 2018.

[ad_2]

Source link

قالب وردپرس

Real Estate

Montreal real-estate prices climbing much faster than Toronto or Vancouver: study

Editor

Published

on

By

MONTREAL — The cost of housing per square foot has skyrocketed in Montreal while other cities saw little change over the last year, according to a new national survey.

The study found that condominium prices in downtown Montreal are up 13.5 per cent from last year to, on average, $805 per square foot.

That’s not as high as other cities, but it’s catching up — and Montreal’s rate of growth is outpacing other major Canadian cities.

Toronto’s condo prices grew to $1083 per square foot, an increase of just under 10 per cent, according to the study. In Vancouver, where you can find some of Canada’s most expensive condo prices, rates are down 4 per cent to $1192 per square foot.

To make the comparisons, Canadian real estate giant Century 21 collected data from real estate boards across the country to calculate the home costs per square foot.

“It’s important to compare apple to apples,” said Todd Shyiak, the company’s vice president of operations.

Montreal’s rise was even more explosive for detached homes and townhouses.

Detached houses in Montreal’s downtown and southwest rose to $958 per square foot, 40 per cent up from last year.

“It’s wild,” said Century 21 broker Angela Langtry. She says the pandemic raised demand.

“People had a lot of time to figure out they don’t like the home they’re in,” she said. “They all want pools.”

There was a big spike in sales, she noted, following a pause in brokerage during the spring, at the peak of the pandemic.

Experts say the pandemic will push people into the suburbs as they search for affordable housing and home office space.

“A huge portion of our society’s housing needs changed overnight,” said Shyiak. People “no longer need to be 10 minutes from the office.”

He says that could mean less demand for condos in the future. “People want their own front door,” he said.

Continue Reading

Real Estate

Carttera buys prime downtown Montreal development site

Editor

Published

on

By

Carttera has acquired a prime downtown Montreal site at 1455 De La Montagne St. which will mark its third development on the thoroughfare.

“We think it’s probably one of the best, if not the best, locations in the whole city,” Carttera founding partner Jim Tadeson told RENX. “We’ve had great success on De La Montagne.”

The two earlier projects are: L’Avenue, a building with 393 residential units, 84,000 square feet of office space and 34,000 square feet of retail that was developed with Broccolini and occupied in 2017; and Arbora Residences, a two-phase development with 434 rental and condominium units in three buildings being built in partnership with Oxford Properties.

Thursday’s latest acquisition, for $48.5 million from 630745 Ontario, is a 31,750-square-foot surface parking lot with flexible mixed-use zoning on the corner of De La Montagne and De Maisonneuve Boulevard West.

The site is near the Vogue Hotel Montreal Downtown, the new Four Seasons Hotel Montreal and high-end retail.

“It’s zoned for up to 203,000 square feet of density, which we’re going to take advantage of,” said Tadeson. “Our vision for the site is a condominium project with some retail.”

Since there is no demolition required and no heritage issues to contend with, Toronto-based Carttera plans to move ahead quickly with the luxury project.

It’s in the concept design phase and Tadeson said it could take six months or more before it’s prepared to make a submission to the city.

Continue Reading

Real Estate

Montreal Has the Hottest Real Estate Market in Canada Right Now

Editor

Published

on

By

If you thought Toronto’s real estate market was on fire, it’s time for a second take, because the market in Montreal is the hottest in all of Canada right now.

A newly-released annual report from CENTURY 21 Canada reveals that, following an early-spring decline due to the COVID-19 pandemic, sales numbers are bouncing back and house prices across the country are maintaining their strength. The study compared the price per square foot of properties sold between January 1 and June 30 of this year, compared to the same period last year.

In Toronto and Vancouver, unsurprisingly, prices remain high. But while regions across the country are seeing varied stories when it comes to their housing market fluctuations, Montreal stands out — there, prices have increased dramatically since 2019. While the numbers remain lower than Toronto and Vancouver, that housing market is proving to be the country’s strongest right now.

In Quebec’s largest city, prices have increased significantly since last year, particularly in the downtown detached house and townhouse markets. For example, the price of a detached house in Montreal’s downtown and southwest rose 42.14% to $958 per square foot, while townhouses went up 44% to $768, and condos, 13.55% to $805. Comparatively, in Toronto and Vancouver, prices saw more modest increases or, in some cases, even declines.

“Even though real estate in Quebec was not considered an essential service, we have seen strong demand and a jump in prices in 2020,” said Mohamad Al-Hajj, owner of CENTURY 21 Immo-Plus in Montreal.

Continue Reading

Chat

Trending