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· Posted on
February 21, 2024

The US regs finally caught up with Juul and straight up banned its products, so stay tuned for a fight

Juul can no longer sell its vaping products in the US - a move that's hit Marlboro owner Altria, too.

What's the key learning?

  • Juul is the e-cigarette company, which was valued at $38 billion at the height of its popularity
  • The FDA has ordered Juul to stop selling its vaping products after studies showed vapes aren't much better than traditional cigarettes
  • When it comes to regulating specific industries, standards are highest if you operate in an industry perceived to be bad for society.

👉 Background: Juul is an e-cigarette (aka vape) company founded in 2017. At the height of its game, Juul was valued at $38 billion. That's when Marlboro owner Altria bought a 35% stake in the company for nearly US$13 billion.

👉 What happened: Juul has been very much under the microscope in recent years due to the potentially harmful nature of tits products. Ya know... after studies showed vapes ain't that much better than traditional cigarettes after all.

👉 What else: Now the regs have finally pinned 'em down! The US Food and Drug Administration - aka the FDA - has ordered Juul to stop selling its vaping products in the US... and Altria's shares tanked 9% as a result.

What's the key learning?

💡When it comes to regulating specific industries, standards are highest if you operate in an industry perceived to be bad for society... like gambling, smoking, or drugs.

💡For vape companies, they have to prove their products benefit public health to stay on the market. That means they have to prove that adult smokers who use their products are likely to quit or reduce their smoking, and that teens are unlikely to get hooked.

💡Why the high standard? More than 2.5 million US students used a tobacco product of some sort in 2021 and 80% was through vape-like products, according to the CDC. Given the size of the US market for Juul, it’s expected that Juul and its band of lawyers will appeal this decision.

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