Tag: Juul Labs

Vuse Continues to Gain Market Share Over Juul

Vuse e-cigarettes continue to grab market share from Juul. The gap is growing in both monthly and yearly comparisons, according to the latest Nielsen convenience store report.
The R.J. Reynolds Vapor Co. brand’s market share rose from 41.5 percent in the previous report to 42.7 percent, compared with Juul declining from 26.4 percent to 25.6 percent.
Over the past 12 months, Vuse’s market share was 36.6 percent, compared with 29.5 percent for Juul. The latest Nielsen analysis of convenience-store data covers the four-week period ending Feb. 25.
On Friday, Altria Group Inc. announced that it had exchanged its 35 percent ownership stake in Juul Labs for a non-exclusive, irrevocable global license to certain of Juul’s heated tobacco intellectual properties.
No. 3 NJoy was unchanged at 2.7 percent, while Fontem Ventures’ blu eCigs was unchanged at 1.4 percent. Njoy’s future looks brighter after an announcement Monday that Altria plans to pay $2.75 billion in cash for NJoy.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 25.7 percent decline in the latest report.
By comparison, Reynolds’ Vuse was up 34 percent in the latest report, while NJoy was down 8.7 percent, blu eCigs down 39.5 percent and Japan Tobacco’s Logic brand vaping product was down 4.9 percent.
As recently as May 2019, Juul held a 74.6 percent U.S. e-cig market share. Neilson data does not consider vape shop sales, which may include more than 40 percent of all vaping product sales.
March 9, 2023
Two Florida School Districts Settle With Juul Labs

Two school districts in the U.S. state of Florida have settled with Juul Labs after accusing the company of marketing its e-cigarettes to children.
Palm Beach County School Board members met Wednesday to approve an initial settlement with the e-cigarette manufacturer as a result of joining a national lawsuit brought by more than 1,400 government agencies.
The settlement will likely result in more than $10 million for Palm Beach County schools over the next five years, according to district staff, according to the Palm Beach Post.
The school district was among the governmental entities and 32 tribal governments that sued the company, along with 8,500 individuals.
Orange County Public Schools, which includes the city of Orlando, will receive an estimated $5.4 million as part of a settlement against a vape and e-cigarette company that is accused of marketing its products to children, according to Orlando News.
In June 2020, Orange County Public Schools joined thousands of other school districts and individuals who entered into litigation against Juul Labs.
In December, the company reached a settlement for hundreds of millions of dollars in connection with the design, manufacture, production, advertisement, marketing, distribution, sale, use, and performance of Juul products.
March 9, 2023
Altria Asks FTC to Drop Juul Acquisition Lawsuit

Altria Group has asked the U.S. Federal Trade Commission to drop its 2020 challenge of the company’s 2018 acquisition of a 35 percent share in Juul Labs, reports Reuters. On March 3, the tobacco giant announced it had exchanged its stake for a license to Juul’s heated tobacco intellectual property rights.
In its legal challenge, the FTC contends that the tobacco giant’s $12.8 billion investment in Juul violates antitrust law because the company acquired the position rather than continuing to compete against Juul in the market for closed-system e-cigarettes.
In February 2022, an administrative law judge dismissed the FTC claims, finding that the evidence failed to sustain the alleged violations.
The next step would have been for the full commission to decide whether to accept that decision and dismiss the FTC case.
However, Altria recently exited its investment and previously terminated a non-compete agreement with Juul that the FTC opposed.
“There is nothing left of the transaction to be challenged. Altria and JLI respectfully ask the Commission to dismiss this matter as moot,” Altria Group and Juul Labs wrote in a filing to the FTC.
March 8, 2023
Atria Agrees to Aquire NJOY Holdings for $2.75 Billion

NJOY Ace
Altria Group has entered into an agreement to acquire NJOY Holdings for approximately $2.75 billion in cash. The transaction terms include an additional $500 million in cash payments that are contingent upon regulatory outcomes with respect to certain NJOY products.
“We believe we can responsibly accelerate U.S. adult smoker and competitive adult vaper adoption of NJOY Ace in ways that NJOY could not as a standalone company,” said Altria CEO Billy Gifford in a statement. “We believe the strengths of our commercial resources can benefit adult tobacco consumers and expand competition. We are also excited to welcome NJOY’s talented employees to Altria at closing.”
“As a result of this transaction, Altria’s enhanced smoke-free portfolio will include full global ownership of products and technologies across the three largest smoke-free categories and a joint venture with JT Group for the U.S. commercialization of heated tobacco stick products.”
“We are excited to add NJOY’s e-vapor intellectual property as a new platform that we believe we can build on to help more adult smokers transition to smoke-free alternatives,” said Olivier Houpert, Altria’s new chief innovation and product officer.
Altria will hold a conference call at 9 a.m. Eastern Time on March 6, 2023. Access to the live webcast is available at. A replay of the webcast and a transcript will be available on the same website following the event.
In 2022, the U.S. vapor category comprised nearly 14 million U.S. adult tobacco consumers, including 9.5 million exclusive adult vapers, according to Altria. The segment generated approximately $7 billion in U.S. retail sales and represented approximately 15 percent of total estimated equivalized U.S. tobacco volumes and more than 50 percent of total estimated equivalized smoke-free tobacco volumes.
To date, the U.S. Food and Drug Administration has approved the marketing of 23 vapor products and devices. In 2022, NJOY received marketing granted orders for the NJOY Ace device, along with several tobacco-flavored pods. The regulatory agency is still reviewing NJOY’s premarket tobacco product applications for several NJOY menthol-flavored e-vapor products.
Altria said it had multiple sources of funding for the deal, including cash from a $2.7 billion agreement with Philip Morris International last year for the IQOS Tobacco Heating System.
The NJOY deal follows an announcement by Altria that it would exchange its entire minority investment in embattled Juul Labs for a nonexclusive global license for certain of Juul’s heated tobacco intellectual property.
March 6, 2023
Altria Exchanges Juul Stake for Heated Tobacco IP License

Photo: Juul Labs
Altria Group has exchanged its entire investment in Juul Labs for a non-exclusive, irrevocable global license to certain of Juul’s heated tobacco intellectual property.
“We believe exchanging our Juul ownership for intellectual property rights is the appropriate path forward for our business,” said Altria CEO Billy Gifford in a statement. “Juul faces significant regulatory and legal challenges and uncertainties, many of which could exist for many years. We are continuing to explore all options for how we can best compete in the e-vapor category.”
As of Dec. 31, 2022, the carrying value and estimated fair value of Altria’s Juul investment was $250 million. Altria will record the financial impact of the agreement in the first quarter of 2023 and intends to treat any such amounts as a special item and exclude it from its adjusted diluted earnings per share.
“The return of Altria’s equity stake and termination of underlying agreements affords us full strategic freedom—we are no longer limited by the terms of those agreements to pursue other strategic opportunities and partnerships,” wrote Juul in a statement. “We are free to take advantage of a range of options to maximize the value of our company while we continue to advance our leading product technology and innovation pipeline.”
In late 2018, Altria paid nearly $13 billion for a 35 percent stake in Juul. “We have long said that providing adult smokers with superior, satisfying products with the potential to reduce harm is the best way to achieve tobacco harm reduction,” said Altria’s then-CEO Howard Willard at the time. “Through Juul, we are making the biggest investment in our history toward that goal. We strongly believe that working with Juul to accelerate its mission will have long-term benefits for adult smokers and our shareholders.”
Over the years that followed, however, regulatory scrutiny and litigation relating to Juul’s marketing practices severely eroded Juul’s valuation. On June 23, 2022, the U.S. Food and Drug Administration ordered Juul Labs to pull its e-cigarettes from U.S. store shelves, saying the e-cigarette manufacturer had submitted insufficient evidence that they were “appropriate for the protection of the public health.” After Juul challenged the marketing denial order (MDO), the FDA agreed to take another look at the company’s pre-market tobacco product application.
The agency said it had determined that there are scientific issues unique to the Juul application that warrant additional review.
In early September, Juul Labs agreed to pay nearly $440 million to settle a two-year investigation by 33 U.S. states into the marketing of its vaping products, which critics have blamed for sparking a surge in underage vaping.
On Sept. 30, Altria announced it was ending its noncompete agreement with Juul. The tobacco giant is reportedly in talks to buy Njoy Holdings for at least $2.75 billion. Njoy has a roughly 2 percent of the U.S. vape market by volume, according to Jefferies. Juul, by contrast, accounts for around a quarter of American vapor product sales. Unlike Juul, however, Njoy has FDA permission to sell its products in the U.S.
“While our appeal of FDA’s now-stayed MDO remains pending, we remain as confident in our science and evidence to support the continued marketing of Juul products,” Juul wrote after Altria announced the exchange of its investment for a license. “We also continue to pursue future applications for new products to accelerate our mission and progress for the adult smoker, public health, and an end to combustible cigarettes.”
March 4, 2023
Atria in Talks to Purchase NJOY for $2.75 Billion
In a long suspected move, Altria Group Inc. is in advanced talks to buy e-cigarette manufacturer NJOY Holdings Inc for at least $2.75 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter.
The deal for NJOY, one of the few non-tobacco-company-affiliated vapor makers whose products have received a marketing order from the U.S. Food and Drug Administration, could be announced as soon as this week, the report said, adding that the talks could still fall apart.
It’s reported that the proposed deal includes an additional $500 million earnout if regulatory milestones are met.
In October Juul was readying to file for Chapter 11 bankruptcy, while searching for an alternative – such as a sale, investment or loan,
In July, NJOY reportedly hired bankers for a possible sale of the company, adding that the privately held firm is likely to be valued at up to $5 billion.
February 28, 2023
Juul Labs Seeking new Partners, Potential Buyers

VV Archive
Juul Labs is in talks with leading cigarette manufacturers about a partnership, alliance or sale of its business, reports The Wall Street Journal.
Juul executives have had separate discussions with Philip Morris International, Japan Tobacco and Altria Group, according to the newspaper.
The talks are at an early stage and might not result in a sale of partnership, The Wall Street Journal’s sources pointed out. Altria, which owns one-third of Juul, valued the vaping company at $1 billion in October.
Once the undisputed leader of the U.S. vape market, Juul reached the brink of bankruptcy last year after the Food and Drug Administration denied its marketing applications and ordered the company to remove its products from the market.
The order has been stayed pending appeal but the still-unresolved dispute made it difficult for Juul to raise money to cover its legal liabilities. In December Juul agreed to pay $1.7 billion in a broad legal settlement covering more than 5,000 lawsuits accusing the company of marketing its products to teens and children. Juul denies targeting underage consumers.
To pay for the deal, Juul secured an equity investment from a group including two Juul directors. The settlement and financing put Juul on firmer ground and allowed the company to begin talks with potential strategic partners.
On Sept. 30 Altria announced it was ending its noncompete agreement with Juul. The decision gave Juul the freedom to sell itself—or a significant stake—to one of Altria’s competitors.
Altria can’t buy Juul outright because of antitrust concerns: The Federal Trade Commission is seeking to unwind Altria’s 2018 investment in Juul. Altria and Japan Tobacco in October formed a partnership to develop and sell heated-tobacco devices in the U.S. and other new tobacco products abroad.
If the FDA ultimately halts Juul’s sales, Juul could seek U.S. authorization for a newer version of its vaporizer that has been released in Canada and the U.K. Juul also has other products under development.
January 26, 2023
Juul MDL Paused for Review of Class Certifications

Credit: Piter2121
The California federal judge presiding over multidistrict litigation regarding Juul vaping products has agreed to postpone a trial that would have parent company Altria Group Inc. facing RICO claims, allowing the Ninth Circuit to first review the trial court’s certification of four classes of plaintiffs who brought the suit, according to Law360.
Last week, A U.S. district judge handed Juul Labs Inc preliminary court approval of a $255 million settlement resolving claims by consumers that it deceptively marketed e-cigarettes, as the company seeks to resolve thousands of lawsuits.
The class action settlement resolves claims by people who say they would have paid less, or not bought the e-cigarettes at all, if Juul had not downplayed the products’ addictiveness and appeal to teenagers through social media campaigns and other means.
The settlement is part of a larger, global agreement by Juul to resolve thousands of lawsuits by school districts, local governments and individuals accusing it of contributing to a youth vaping epidemic.
January 26, 2023
Juul Labs has Early Approval for Consumer Settlement
Credit: Insurance Journal

Judge says the settlement of lawsuits seems ‘fair, reasonable’

Specific settlement details were not made public at a court hearing

A U.S. district judge handed Juul Labs Inc on Friday preliminary court approval of a $255 million settlement resolving claims by consumers that it deceptively marketed e-cigarettes, as the company seeks to resolve thousands of lawsuits.
Judge William Orrick in San Francisco said the proposed class action settlement resolving claims by consumers who said they overpaid for Juul’s vaping products was “fair, reasonable, and adequate,” according to a court filing, as reported by Reuters.
Lawyers in the case said they expect to return to the judge in July seeking final approval.
The class action settlement resolves claims by people who say they would have paid less, or not bought the e-cigarettes at all, if Juul had not downplayed the products’ addictiveness and appeal to teenagers through social media campaigns and other means.
The settlement is part of a larger, global agreement by Juul to resolve thousands of lawsuits by school districts, local governments and individuals accusing it of contributing to a youth vaping epidemic.
The company last month said it had reached settlements with about 10,000 plaintiffs covering more than 5,000 cases. It has not said how much it will pay, though the Wall Street Journal reported the deal is valued at $1.7 billion.
Altria Group Inc, Juul Labs’ largest stakeholder, has asked a federal judge to order the e-cigarette manufacturer to turn over details of the settlement claiming the details remain “shrouded in secrecy” even from other parties in the litigation.
January 21, 2023
Juul’s Market Share Still Falling, Vuse Continues Growth

Credit: Golib Tolibov
The top-selling Vuse electronic cigarette of R.J. Reynolds Vapor Co. continued to expand the market-share gap with Juul in both monthly and yearly comparisons.
Vuse’s market share rose from 40.7 percent in the previous report to 41.1 percent, compared with Juul declining from 27 percent to 26.7 percent. For 2022 overall, Vuse’s market share was 35.7 percent, compared with 30.1 percent for Juul.
No. 3 NJoy slipped from 2.8 percent to 2.7 percent, while Fontem Ventures’ blu eCigs was unchanged at 1.4 percent.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 23.7 percent decline in the latest report, according to media reports.
By comparison, Reynolds’ Vuse was up 32.7 percent in the latest report, while NJoy was up 0.1 percent, blu eCigs down 33.4 percent and Japan Tobacco’s Logic down 15.1 percent.
As recently as May 2019, Juul held a 74.6 percent U.S. e-cig market share.
On Sept. 30, Altria Group Inc. cleared the way to re-enter the e-cigarette marketplace after choosing to permanently end its non-compete agreement with Juul Labs.
January 12, 2023