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Altria launches Philip Morris' heated tobacco device in US

Altria Group Inc. is rolling out a heated tobacco device in the U.S. this week amid an outbreak of a deadly lung disease linked to e-cigarettes, CNBC reported Oct. 4.

The IQOS device, made by Philip Morris International Inc., heats a tobacco plug without igniting it to produce flavored vapor. Its official launch is Oct. 4 in Atlanta, where the company opened a new IQOS store in the Lenox Square mall, according to CNBC.

The launch comes amid growing scrutiny of the e-cigarette industry in the U.S. and an increase in youth vaping.

Altria will market IQOS in the U.S. through a licensing agreement with Philip Morris.

The move follows the U.S. Food and Drug Administration's approval of the device in April. The Marlboro-maker said it will sell IQOS and HeatSticks through about 500 retail stores in Atlanta as it tests marketing, sales and consumer engagement approaches for a national rollout.

Altria and Philip Morris started developing IQOS when the companies were still combined, and the latter led the work once it was spun off from Altria in 2008, CNBC said. The companies recently ended discussions for an all-stock merger of equals.

Altria estimates that 20 million of about 34 million adult smokers in the U.S. are seeking alternatives, many of whom have tried but disliked vapor products, Altria spokesman David Sutton told CNBC.

Altria plans to open another store in the Mall of Georgia later in October, as well as mobile stores around the city and pop-up kiosks in its existing retailers, the report said.

The tobacco giant picked Atlanta as its launch market since it is a tech-focused city with "several hundred thousand" adult smokers, Sutton added. Altria will monitor the results before launching IQOS to other cities as a part of the company's plans to expand rapidly.

Under the regulations, Altria must submit advertisements to the FDA 30 days before publication, establish independent age and identification verification for online sales and disclose its affiliation when using influencers to promote IQOS, among other requirements.

Altria must also maintain detailed records and send the FDA quarterly reports on its sales, including demographic data on its customers such as how many have switched to IQOS from cigarettes or use both products, the news outlet reported.

Altria-backed Juul is being investigated by the U.S. Federal Trade Commission over its marketing practices. The agency is probing whether Juul targeted minors or used influencers for marketing its products.