Tobacco Shares Plunge on Possible U.S. Ban of Menthol Cigarettes

  • About 20% of Marlboro maker’s profit from menthol products
  • British American Tobacco is ‘most exposed,’ Jefferies says

Photographer: Robert Gilhooly/Bloomberg

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Altria Group Inc., the maker of Marlboro, fell on news of a possible ban on menthol cigarettes in the U.S., which account for about 20 percent on the company’s profit.

A senior U.S. Food and Drug Administration official said last week that the agency is looking at restricting menthol in traditional cigarettes. Doing so would be a step toward eliminating or tightly limiting use of the popular cigarette flavor, something the FDA has been considering for some time. More aggressive regulation of nicotine has been a major priority for Commissioner Scott Gottlieb.