Tag: Juul Labs

States Urged to Use Juul Settlement for Prevention

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Medical groups are urging the U.S. states that recently won a case against Juul Labs to use the money for tobacco prevention and cessation programs, according to Pew. The court case ended in a $438.5 million settlement.
The deal, which resolved an investigation by 33 states into Juul Labs’ marketing practices, requires Juul to pay states over six years to 10 years, prohibits Juul from further marketing to young people, limits where Juul products can be sold and advertised, bans flavors that haven’t been approved by the U.S. Food and Drug Administration and prohibits free samples and brand-name merchandise marketing.
Groups, including the Campaign for Tobacco-Free Kids (CTFK), the American Cancer Society Cancer Action Network, the American Heart Association, the American Lung Association, Americans for Nonsmokers’ Rights and the Truth Initiative, called on the states involved in the settlement “to both build on the successes of the historic 1998 Master Settlement Agreement with the tobacco industry and avoid some of the mistakes that were made.”
The groups cited a CTFK report showing that of the $27 billion that states collected from tobacco settlements and taxes in fiscal 2022, only 2.7 percent was spent on programs to prevent kids from smoking and help smokers quit.
Several attorneys general have expressed intent to use the Juul settlement money for smoking prevention and cessation programs. The health groups urged the officials to “translate that admirable intention into a firm commitment expressed in the text of the final agreement.”
October 3, 2022
Altria Ends Non-Compete Agreement With Juul Labs

Altria Group on Friday said it had exercised the option to be released from its non-compete deal with Juul Labs. The move comes nearly four years after the tobacco giant purchased a 35 percent stake in the e-cigarette manufacturer that at the time was dominating the market.
Altria is looking to permanently terminate its non-competition obligations to Juul Labs, give up certain rights including its board designation rights and reduce its voting power, according to a 8-K filing to the Securities and Exchange Commission.
The filing states Altria has exercised its option to permanently terminate its non-competition obligations to Juul Labs, losing the right to the board designation and significantly reducing its voting power, according to Barron’s.
“This decision … increases the financial and strategic options we can pursue to secure our business and address the impact of the (U.S. Food and Drug Administration’s) now stayed [marketing denial] order,” a Juul spokesperson said.
In July, Altria slashed the value of its stake in Juul to $450 million, down from the original value of $12.8 billion, allowing itself the option to be released from the non-compete clause and invest in or engage with any other e-cigarette manufacturers.
However, it did not seek to be released from the obligations at the time, and said it saw value in its investment rights in Juul. “The decision to terminate our non-compete maximizes our flexibility to compete in the e-vapor space while maintaining our economic interest in Juul,” Altria said on Friday.
A change in its stance means Altria could go it alone or pursue other vaping products. Privately owned Njoy, which has already survived the FDA’s controversial premarket tobacco product application (PMTA) process, could be a takeover target for Altria, according to some analysts.
In July of this year, NJOY Holdings Inc hired bankers for a possible sale of the company. The news report stated that privately held NJOY was likely to be valued at up to $5 billion.
“It’s more likely that Altria will seek to buy its way back into the e-cigarette category (which represents 7 percent of U.S. nicotine sales),” Cowen analyst Vivien Azer said.
October 1, 2022
Maine Backs Out of Multi-State Juul Labs Settlement

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Not everyone is satisfied with Juul Labs’ multi-state settlement over its youth marketing practices. The Maine Attorney General’s Office on Friday said his state would be backing out of its $11 million agreement with e-cigarette manufacturer after objecting to certain conditions from the company.
Maine was set to receive an estimated $11.6 million over the next six to 10 years as part of a nearly $440 million settlement between the manufacturer and 33 states and territories. The investigation found that Juul had marketed its products to youth.
However, as part of the agreement, Juul wanted states to waive the rights of school districts to pursue their own lawsuits, according to the Maine AG’s office. Maine wasn’t willing to agree to that.
“We are disappointed in the outcome of these negotiations, but ultimately we were unwilling to waive the rights of other entities who are also trying to hold Juul accountable for its deception,” Attorney General Aaron Frey said in a statement to The Maine Monitor.
It was not immediately clear if other states would also abandon the agreement.
September 25, 2022
Vuse’s U.S. Market Share Hits Double Digits Over Juul

It just keeps growing. In the latest Nielsen analysis of convenience-store data, the market-share gap between Vuse and Juul vaping products has stretched to a double-digit lead for Vuse.
The analysis, released Tuesday, covers the four-week period ending Sept. 10.
Vuse’s market share rose from 39 percent in the previous report to 39.7 percent, compared with Juul declining from 29.4 percent to 28.1 percent.
Vuse also has also now edged ahead of Juul in the year-over-year comparison at 32.9 percent to 32.7 percent, respectively. It’s the first time Vuse has led the year-over-year comparison.
According to Barclays, Nielsen largely covers the big chains. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen, according to the Winston-Salem Journal.
The looming potential for an outright ban of Juul Labs’ e-cigarettes from U.S. retail shelves has accelerated the market-share gains of R.J. Reynolds Vapor Co.’s Vuse brand, according to reports.
Meanwhile, No. 3 NJoy dropped from 2.9 percent to 2.8 percent, while Fontem Ventures’ blu eCigs slipped from 1.6 percent to 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 17.7 percent decline in the latest report.
By comparison, Reynolds’ Vuse was up 41.4 percent in the latest report, while NJoy was down 5.6 percent and blu eCigs fell to 30.2 percent.
September 21, 2022
Juul Sues FDA for Failure to Disclose Documents

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The battle between Juul Labs and the U.S. Food and Drug Administration continues to gain steam. The vapor manufacturer has now filed a lawsuit against the FDA over the agency’s refusal to disclose documents supporting its marekting denial order (MDO) that bans a company from selling e-cigarettes on the U.S. market.
In a complaint filed on Tuesday with a federal court in Washington, D.C., Juul Labs accused the FDA of invoking the “widely abused” deliberative process privilege to improperly withhold scientific materials that are “central” to understanding the basis for the June 23 issuance of the MDO, according to Reuters.
The company claims the materials would show whether the FDA conducted a legally required balancing of the public health benefits and risks of its products, including claims Juul e-cigarettes help smokers quit combustible cigarettes, and whether the agency’s reasoning was scientifically sound.
“The public deserves a complete picture of the scientific facts behind one of the agency’s most controversial and closely scrutinized decisions in recent years,” Juul Labs stated.
An FDA spokeswoman declined to comment, saying the agency does not discuss pending litigation.
Juul Labs accused the FDA of violating the federal Freedom of Information Act by withholding a majority of the “scientific disciplinary reviews” underlying the sales ban.
The company said it filed an administrative appeal of its MDO through the agency, but the FDA missed a Sept. 13 deadline to resolve it.
A federal appeals court temporarily stayed Juul’s MDO on June 24.
Earlier this month, Juul Labs settled youth marketing lawsuits with 33 states and Puerto Rico.
September 21, 2022
Juul Settles Teen Vaping Investigation With 33 States

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Juul Labs will 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, reports AP.
The probe found that Juul marketed its e-cigarettes to underage teens with launch parties, product giveaways and ads and social media posts using youthful models.
“Through this settlement, we have secured hundreds of millions of dollars to help reduce nicotine use and forced Juul to accept a series of strict injunctive terms to end youth marketing and crack down on underage sales,” Connecticut Attorney General William Tong said on Sept. 6 in a statement.
In reality, most of the limits imposed by the settlement won’t affect Juul’s practices, which halted use of parties, giveaways and other promotions after coming under scrutiny several years ago.
While Juul’s early marketing focused on young, urban consumers, the company has since shifted to pitching its product as an alternative nicotine source for older smokers.
“We remain focused on our future as we fulfill our mission to transition adult smokers away from cigarettes—the number one cause of preventable death—while combating underage use,” the company said in a statement.
While resolving one of the biggest legal threats, Juul Labs still faces nine separate lawsuits from other states. Additionally, Juul faces hundreds of personal suits brought on behalf of teenagers and others who say they became addicted to the company’s vaping products.
The company is also in the process of appealing a marketing denial order (MDO) by the U.S. Food and Drug Administration, which, if upheld, would force its products off the market.
In June, the FDA rejected Juul Labs’ premarket tobacco product applications, saying that the company has submitted insufficient evidence that its products were appropriate for the protection of public health.
While the agency subsequently suspended its MDO, citing scientific issues in the application that warrant additional review, the agency stressed that the stay does not rescind the order.
September 6, 2022
Altria Investor Settlement Over Juul Denied by Judge

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A U.S. federal judge declined to give preliminary approval to a proposed $117 million settlement between Altria Group and shareholders in a lawsuit over the company’s investment in Juul Labs, calling the deal “inadequate,” reports Law360.
The lawsuit contends that Altria’s executives threw caution to the wind when they bought a 35 percent stake in Juul for $12.8 billion in 2018.
According to the shareholders, the Altria executives also engaged in illegal and anti-competitive conduct that cost Altria billions of dollars as Juul faced an increasing number of legal battles over the alleged health risks of its products and alleged marketing to underage consumers—problems that the plaintiffs say Altria knew about at the time of the investment but ignored.
The value of Altria’s investment has declined steadily as Juul Labs faced litigation and increased regulatory scrutiny.
The plaintiffs argued for approval of the settlement, saying the recovery is fair and reasonable when weighed against the costs and risks of further litigation. U.S. District Judge David J. Novak did not explain why he considered the settlement inadequate.
August 29, 2022
Market Share Between Vuse and Juul Continues to Widen

The market share between Vuse and Juul e-cigarettes continues to grow, according to the latest Nielsen analysis of convenience-store data.
The analysis, released Tuesday, covers the four-week period ending Aug. 13.
According to Barclays, Nielsen largely covers the big chains. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen.
In recent months, the shadow of a potential banning of Juul Labs Inc.’s e-cigarettes from U.S. retail shelves has accelerated the market-share gains of R.J. Reynolds Vapor Co.’s Vuse brand.
Vuse’s market share rose from 37.4 percent in the previous report to 39 percent, compared with Juul declining from 30.7 percent to 29.4 percent.
Meanwhile, No. 3 NJoy dropped 3 percent to 2.9 percent, while Fontem Ventures’ blu eCigs slipped from 1.7 percent to 1.6 percent 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 20.1 percent decline in the latest report, according to the Winston-Salem Journal.
By comparison, Reynolds’ Vuse was up 39.8 percent in the latest report, while NJoy was down 11.5 percent and blu eCigs down 29.9 percent.
Goldman Sachs analyst Bonnie Herzog wrote in her Tuesday note to investors that Juul’s market share decline occurred in part “following confusion around the FDA’s marketing denial order against Juul.”
Juul still maintains a 33.7 percent to 32.6 percent market-share lead over the previous 52 weeks.
August 25, 2022
Altria Stock Up 8% Since FDA Pulled Juul Denial Order

When the U.S. Food and Drug Administration told Juul Labs it needed to pull its e-cigarette from the market, Altria stock (MO) hit a more than 52-week low of $41.00 in early July. On Aug. 15 MO was trading up 0.2 percent at $45.35.
Altria stock has fallen 7 percent over the past 12 months and is currently trading down 21 percent since peaking at a three-year high of $57.05 in early May, according to Schaefer’s Investment Research.
Additionally, shares of MO have dropped 6 percent year-to-date. However, Altria stock has increased 8 percent over the past month and is up 10 percent since the July low.
The FDA ordered Juul Labs to remove its products from the U.S. market and MO plummeted until, on July 6, the FDA said it was temporarily lifting its ban on Juul products.
The tobacco company’s valuation metrics remain mixed, with Altria stock trading at an intriguing forward price-earnings ratio of 9.29 but also at a high price-sales ratio of 3.92.
“Nonetheless, MO offers an incredible dividend yield of 7.97% with a forward dividend of $3.60, making it one of the highest dividend yields available on the stock market today,” the story states.
MO has struggled to maintain consistent growth on the bottom line over multiple years as well, reporting an $8.3 billion decrease in net income for fiscal 2019 and a $2 billion decrease for fiscal 2021.
Still, the tobacco company is expected to end fiscal 2022 with 5 percent revenue growth.
August 18, 2022
Gallup Poll Claims U.S. Wants Stricter Vape Rules

Credit: Andrey Popov
Six in 10 Americans would like the laws and regulations dealing with electronic cigarettes to be stricter, a view shared by majorities of men, women and all age groups, according to a new poll from Gallup.
Views on e-cigarettes are also bipartisan, with more than half of Republicans, independents and Democrats wanting stricter laws.
The latest findings, from Gallup’s annual Consumption survey, conducted July 5-26, come after the U.S. Food and Drug Administration voted in June to ban the sale of a popular brand of e-cigarettes.
That decision is now under appeal.
The 61 percent of Americans currently in favor of stricter e-cigarette laws is slightly more than the 54 percent who held this view last year but similar to the 64 percent recorded in 2019.
Across all years, few adults have said the laws for e-cigarettes should be less strict, including 7 percent holding this position today.
The poll also found that a majority of Americans favor taking nicotine, but not menthol, out of cigarettes.
August 14, 2022