Mango Pod Summer 💨
JUUL, the American e-cigarette company, is back.
In 2022, the U.S. Food and Drug Administration (FDA) banned JUUL from selling its product in the U.S. The agency cited technical issues with JUUL’s application, not the rapid rise in vaping use by teenagers (20% of high schools responded they had used e-cigarettes in a 2018 government survey), for its decision, per The New York Times.
While the firm’s products have remained on shelves during its appeal of the FDA’s initial decision, the ban prevented JUUL from legally marketing its products.
Right before the ban, JUUL faced major headwinds: Marlboro cigarette maker Altria Group invested $12.8 billion for a 35% stake in JUUL, valuing the company at $38 billion in 2018. But JUUL’s net revenue came in at $259 million for the first quarter of 2022, down 23% from the prior year. Legal action and marketing campaigns from concerned parents, schools, and politicians regarding the harmful effects of JUUL were hurting its sales. JUUL was not profitable and needed to demonstrate better growth potential to raise more money.
Last Thursday, the FDA reversed its ban on JUUL products. The company is now pursuing marketing authorization from the FDA for its products.
While they wait, some people have already started a guerrilla marketing campaign for them.
