[ad_1]
In the corridors of the school, in the library, in the car or under the duvet … under the hashtag # must4juul, hundreds of American teenagers share short videos on Instagram, where they film themselves in the process of 'juul . In three years of existence, Juul Labs, a manufacturer of electronic cigarettes, has managed to make his name a verb.
His product: a device resembling a USB key in which refills with a liquid containing nicotine. It has emerged as the leader in e-cigarettes, capturing 68% of a market that Wells Fargo Bank predicts will grow 25% this year in the US
$ 245 million worth
Founded in San Francisco by two design graduates from Stanford University, the company is seeking a $ 1.2 billion round of funding to expand and expand its business. especially in Europe and Asia. In early July, it secured $ 650 million, the majority from Fidelity Investment Funds and Tiger Global. If it manages to finalize its fundraising, its valuation will increase to $ 15 billion – a level equivalent to the social network Snap and the operator of transport vehicles with driver Lyft.
Investors are attracted by growth in sales. According to the online media "Axios", Juul Labs reportedly generated $ 245 million (€ 210 million) in revenue in 2017, an increase of more than 300% in one year, and put on a figure of business of $ 940 million next year. Through the sale of devices at $ 35 and especially that of refills – $ 16 for four "pods" to shoot 200 puffs each – the company achieves a gross margin of 70%.
Addiction to nicotine among adolescents
However, the company faces increased attention from the scientific community, public authorities and regulators in the face of its success among adolescents. Juul Labs says it does not target this demographic and is only for "adults who want to switch fuel cigarettes to a better alternative." E-cigarettes do not create heavy particles (carbon monoxide, tar, etc.) that cling to the lungs compared to a conventional cigarette.
VIDEO – E-cigarette: more and more bans
A banner on the homepage of the company's website states that "you must be at least 21 years old to buy your products" and that "it is illegal to sell them or resell to minors. But that's not enough to stop retailers from activating sites like eBay and forcing convenience stores and gas stations to check buyers' age.
Juul captures Millennials interest
Some scientists, like Jonathan Winickoff, the former president of the American Academy of Pediatrics Tobacco Consortium, blame the company for creating nicotine addiction among young people who would otherwise have never smoked. Because smoking is no longer popular among young Americans: while 20.6% of college students reported smoking cigarettes daily in 2000, they were down to 5.5% in 2015, according to the Ministry of Health. American Health
"An Approach to the Apple"
Juul has just thought of its design so that the product is closer to a high-tech minimalist device than a cigarette – no cylindrical shapes, no "Juul has captured the Millennials' interest with an Apple approach," says Bonnie Herzog, Wells Fargo's cigarette analyst. The existence of sweet flavors such as mango or crème brûlée is also seen as an element attracting young people.
The citizens of San Francisco, where Juul Labs employs 400 employees, decided in a referendum held on last month to ban the sale of scented nicotine liquids for this reason. In April, the regulators of the Federal Drug Administration (FDA) asked the company to provide internal documents on the company's marketing strategy, especially with regard to young people, and studies on the addictive potential of its products.
Juul Labs has taken several steps to show his good will. After having included on its packaging the mention "the alternative for adult smokers", she announced that she would spend $ 30 million over the next three years to combat consumption by teenagers. This Thursday, she was launching a less loaded version of nicotine for two of her flavors.
Source link
