Teen e-cigarette use is surging, threatening Juul and others
Juul’s greenback gross sales have surged 769 p.c over the previous yr, in accordance with the most recent Nielsen information compiled by Wells Fargo analyst Bonnie Herzog. The San Francisco firm offered $1.48 billion in vape kits and nicotine pods over the 12 months ended Sept. eight — almost 60 p.c of the $2.5 billion for the complete class, in accordance with Herzog.
Juul’s gross sales have boosted the complete e-cigarette market sufficient for Herzog to lately up her full-year gross sales forecast to $6.6 billion from her earlier estimate of $5.5 billion. Juul has been valued at about $16 billion after elevating $1.25 billion in its newest spherical, in accordance with an individual acquainted with the matter.
Whereas these Huge Tobacco corporations personal e-cigarettes, they may not be as a lot in danger because the bulk of their gross sales nonetheless come from cigarettes. The opposite 4 corporations the FDA is focusing on have offered $940.three million of merchandise over the previous yr within the U.S., in accordance with Nielsen information.
With a £80.76 billion market cap British American Tobacco’s e-cigarette gross sales rose 7.eight p.c over the previous yr, reaching $402.5 million. Altria, with a $117.four billion market cap, has seen e-cig gross sales rise 37.5 p.c to $234.2 million.
Imperial Tobacco’s greenback gross sales have gained 16.2 p.c over the previous yr to $195.four million. The corporate has a £24.73 billion market cap. Logic, owned by Japan Tobacco, noticed gross sales decline 10.three p.c over the previous yr to $108.2 million. Japan Tobacco’s market cap is 5.24 billion yen.
Nonetheless, a regulatory crackdown may threaten the trade’s progress. Nonetheless, Gottlieb advised CNBC his door is ‘very open’ to corporations who wish to introduce e-cigarettes with new options that show to make children much less probably from utilizing them.
Flavors, together with creme and mint, accounted for about 90 p.c of Juul’s gross sales in latest information. That leaves Juul weak to regulators’ warnings of pulling flavored merchandise from the market.
But Juul is already trying abroad for progress. It is already launched in Israel, England, Scotland and Canada. It is also eyeing different worldwide markets, together with Asia.
Supply hyperlink – https://www.cnbc.com/2018/09/21/teen-e-cigarette-use-is-surging-threatening-juul-and-others.html