Trump Administration has withdrawn the proposed ban on menthol cigarettes and flavored cigars in the U.S., which has been looming over the tobacco industry since the FDA’s initial proposal in April of 2022, Citi tells investors in a research note. The firm the confirmed withdrawal is a “significant positive” for each of British American Tobacco (BTI), Altria Group (MO) and Imperial (IMBBY). Around 33% of the U.S. cigarette market in 2023 was menthol, and Citi estimates that U.S. menthol cigarettes account for 25% of British American’s and Altria’s operating profit globally and 10% of Imperial’s, the analyst notes.
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