E-cig startup Juul plans to go global by raising $1.2 billion
"Juuling" might be a thing around the world in the future, because the e-cig-maker has big plans to go global. According to Bloomberg, Juul is raising $1.2 billion in a financing round, which would put the startup's value at a whopping $15 or $16 billion. If you need something to compare that to, Lyft recently reached a $15 billion valuation after raising $600 million. The publication says the company is hoping to use the money it raises from investors to make its USB vape pens available outside the US and Israel. Currently, if you want to buy its trendy pens and nicotine pods outside those two countries, you'd have to find resellers.
Does this story make you want to sell drugs flavored water to children?
Related: Tobacco Roundup (U.S. to Crack Down on Tobacco, Electronic Cigarettes)
Related Stories
U.S. to Crack Down on Tobacco, Electronic Cigarettes
NBC News and the Providence Journal report that the U.S. Food and Drug Administration (FDA) has published a rule which will classify cigars, chewing tobacco and nicotine-containing fluid for electronic cigarettes as tobacco products. Under the rule, sale of those items to people under 18 years of age is to be prohibited. The electronic parts of electronic cigarettes are not covered by the rule. According to NBC News, the rule "will be open for public comment before it becomes final." The FDA regulates cigarettes and loose tobacco for smoking.
[Continues...]
F.D.A. Seizes Documents From Juul Headquarters
The Food and Drug Administration conducted a surprise inspection of the headquarters of the e-cigarette maker Juul Labs last Friday, carting away more than a thousand documents it said were related to the company's sales and marketing practices.
The move, announced on Tuesday, was seen as an attempt to ratchet up pressure on the company, which controls 72 percent of the e-cigarette market in the United States and whose products have become popular in high schools. The F.D.A. said it was particularly interested in whether Juul deliberately targeted minors as consumers.
"The new and highly disturbing data we have on youth use demonstrates plainly that e-cigarettes are creating an epidemic of regular nicotine use among teens," the F.D.A. said in a statement. "It is vital that we take action to understand and address the particular appeal of, and ease of access to, these products among kids."
Previously: Tobacco Roundup (U.S. to Crack Down on Tobacco, Electronic Cigarettes)
E-Cig Maker Juul Valued at $15-16 Billion
E-cigarette maker Juul boosts lobbying spending as regulatory scrutiny increases
Leading e-cigarette manufacturer Juul spent half a million dollars on lobbying last quarter — up 167 percent from the previous quarter — as regulators weigh restrictions on the industry to stem a surge in teens using the devices.
In the third quarter, Juul spent $560,000, according to a lobbying disclosure form. That compares with the $210,000 it spent in the previous quarter, according to a filing. The company focused its efforts on e-cigarette and vaping regulation, as well as tariffs on products manufactured in China, it said in the disclosure.
However, the $560,000 is half of the amount the company initially reported spending Tuesday. The company filed an amendment correcting the figure, Juul spokeswoman Victoria Davis told CNBC.
Juul has beefed up its Washington operations amid growing scrutiny that could threaten its business. It has hired Tevi Troy, deputy Health and Human Services secretary in the George W. Bush administration; Jim Esquea, an assistant HHS secretary in the Obama administration; and Ted McCann, a senior policy advisor to House Speaker Paul Ryan, among others.
Also at The Hill.
See also: Juul e-cigarettes pose addiction risk for young users
JUUL's social media campaign resonates alarmingly with teens
Weed Vaping Startup Pax Raises $20 Million
Juul Season is Over
Previously: E-Cig Maker Juul Valued at $15-16 Billion
FDA Raided E-Cigarette Maker Juul to Look for Evidence That the Company Targets Minors
Altria board approves $13 billion investment in e-cigarette company Juul
Altria's board of directors has approved its $12.8 billion investment in leading e-cigarette manufacturer Juul, with a formal announcement planned for Thursday before market open, people familiar with the matter told CNBC. Juul's board is meeting to consider the deal.
Tobacco giant Altria will invest $12.8 billion for a 35 percent stake in Juul, which values the e-cigarette company at $38 billion, the people said. The deal combines the maker of the best-selling cigarette with the best-selling e-cigarette and comes as both companies are under pressure.
The deal marks a turning point for Juul. The company has positioned itself as anti-tobacco, with a mission to help to wean adults off combustible cigarettes, which are responsible for killing about half a million Americans every year. With this deal, though, it will be partly owned by one of the world's biggest tobacco giants.
As such, Juul stipulated a number of conditions to help ensure the Altria deal furthers its goals. As part of the agreement, Altria would add Juul coupons to Marlboro and other cigarette packs and give Juul some of its prime shelf space, the people familiar said.
Also at NYT, Reuters, and The Verge.
See also: Marlboro maker Altria nears deal to take 35 percent stake in leading e-cigarette company Juul, sources say
$1.3 million: the average bonus Juul employees get after a deal with a cigarette maker
[$38 billion] makes Juul Labs Inc. more valuable than Airbnb and Elon Musk's SpaceX, according to Bloomberg News.
Previously: E-Cig Maker Juul Valued at $15-16 Billion
FDA Raided E-Cigarette Maker Juul to Look for Evidence That the Company Targets Minors
Juul Boosts Lobbying Spending as Potential E-Cigarette Regulations Loom
Marlboro Owner Invests $1.8 Billion in Cannabis Company
(Score: 3, Interesting) by FatPhil on Tuesday July 03 2018, @08:29AM (13 children)
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 0) by Anonymous Coward on Tuesday July 03 2018, @09:57AM (9 children)
Aye, and this lot are probably well aware of that fact, and they (more to the point, anyone foolish enough to actually give this lot the $1.2 billion they're asking for and from which, naturally, they'll then want to pay themselves large 'bonuses' for expanding their market before the inevitable titsup occurs) will find that there's already quite a healthy(sic) e-cig market out here in the rest of the world and they'll be just a wee bit late to this particular party in these markets..
Besides, seriously?, they think people will want to be walking around toking from something which looks like an old scool USB WLAN/3G dongle?, locally, the e-ciggies I've seen people using either look like normal cigarettes or look (at best) like the bastard offspring of the good Doctor's sonic screwdriver and Varian's 'Sonic Energiser'.
(Score: 0) by Anonymous Coward on Tuesday July 03 2018, @10:21AM (1 child)
s/scool/school/
I plead lack of Rum..which I'll now rectify..and a duurrty keyboard..which I'll get round to at some point.
(Score: 2) by c0lo on Tuesday July 03 2018, @10:28AM
FTFY
https://www.youtube.com/watch?v=aoFiw2jMy-0
(Score: 2) by KritonK on Tuesday July 03 2018, @11:58AM
...and even has a USB connector (for charging).
(Score: 2) by takyon on Tuesday July 03 2018, @12:39PM (4 children)
Part of the appeal seems to be the USB stick-like nature of the device. Easy to conceal, especially at school.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 2) by Alfred on Tuesday July 03 2018, @01:49PM (3 children)
(Score: 2) by takyon on Tuesday July 03 2018, @01:57PM (2 children)
Pretty soon to be found at your local gas station: Juul knock-offs such as "Jemm" and "Cristal (like the champagne)". Let's hope they can successfully sue for... design patents? Trademark infringement?
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 2) by Alfred on Tuesday July 03 2018, @03:45PM
(Score: 2) by FatPhil on Tuesday July 03 2018, @03:57PM
I live downtown in the capital city, streets are full of people, and there's plenty of youth, as I'm right on top of the bar district. Downstairs in my building, after a boutique clothing store, about 9 months ago, we got a vape shop. It closed over 6 months ago, there's a bar there now. Does that mean we're past peak vape? I really can't think of many other vape shops in town, but I don't travel far from the centre often. It might just be the rents in the building, of course, the landlord's a greedy cunt, and apparently there's no shortage of stupid renters who think their business will succeed where every other one has failed.
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 2) by sjames on Tuesday July 03 2018, @01:13PM
Not to mention non-refillable cartridges for "health and safety" reasons. And damned expensive cartridges at that.
As for the fear for the children angle, 10 years ago, the kids using e-cigs would have been smoking regular cigarettes (possibly with a five finger discount if the cashier carded).
(Score: 3, Interesting) by richtopia on Tuesday July 03 2018, @01:29PM (2 children)
While I speculate it is over valued, they pass my first rule of investing: the income stream is easily understood. They sell physical objects to consumers. The market is displacing a massive pre-existing technology, and the use of the product is highly addictive.
I'll contrast that with WhatsApp, which was purchased by Facebook for $19bn: The service is competing with many other free products, so there is little opportunity to increase prices. A major differentiator is the privacy/encryption, which undermines secondary revenue streams like selling data to third parties. The Wikipedia article does not call it out, but I doubt the service posted profits before the acquisition.
I'm not trying to turn this into a WhatsApp conversation. I'm just a bit thrilled that we finally have a startup acquisition with a business model that I fundamentally understand.
(Score: 3, Interesting) by FatPhil on Tuesday July 03 2018, @03:47PM (1 child)
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 2) by DeathMonkey on Tuesday July 03 2018, @05:42PM
Of course, those are just potential bans. And, their competition already has real bans.
(Score: 2) by Freeman on Tuesday July 03 2018, @07:38PM
E-Cigs are becoming the rage and don't have quite the same stigma as someone who smokes normal cigarettes. For one they and their house shouldn't smell like tar anymore. Well, you won't be able to get the tar smell out of a house without a huge amount of effort and some money, but it's doable anyway. E-Cigs are likely a good stepping stone for those that can't quit cold turkey. It's also got to be healthier than the blackness your lungs turn into with the use of normal cigarettes.
You can say bubble all you want, but E-Cigs could be the beginning of an upswing in smoking (vaping) in the USA.
Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"