Illicit Market CompetitionThe widespread availability of illicit disposable e-vapor products represents more than 60% of the e-vapor category and has given pause to the achievability of MO's near-term smoke-free volume and revenue goals.
Market ShiftsThe pod-based vapor category, which includes NJOY, is declining by approximately 15% as consumers shift to largely illicit disposable products.
Regulatory ChallengesAn adverse patent infringement ruling could lead to NJOY being pulled from shelves, impacting sales.