Juul: An increase of something of $ 38bn e-mails



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Reuters

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Juul has exploded – but is it still?

Juul has all the quality at Silicon Valley's high profit performance, failing to lose fat, expand explosion, and even the cultural cachet to name as a verb.

But it's not a simple technology company in the three-year-old campaign: it's going to be; selling humorous emails.

His interest among teenagers has encouraged a lawsuit from authorities, and as announced last month that he would be involved in Altria, Making Marlboro's cigarettes, he only made the dispute.

So how can the company's growth be worth more than $ 38bn (£ 30bn)?

How did the company start?

Juul shares a story with many other companies in Silicon Valley.

Founders of Adam Bowen, 43, and James Monsees, 38, were in the early 2000s while they were. graduating at Stanford University, where they were studying product design.

The people who smoked themselves, went to Finding a way to make cigarettes smaller and smell, and they were more socially suited.

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AFP / Getty

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The co-founders of Adam Bowen (L) and James Monsees (R) are now valuable billions, according to Forbes

They set up their Pax Labs company in 2007 and spent about ten years working on vape products, before launching Juul in 2015.

The device, often resembled an unusual driver long, allows me to install through a pod, Ingredients for tobacco, mint and mango foods and brush delivery of nicotine equivalent to a tobacco pack.

How big is Juul?

Pax Labs out of Juul became an independent company in 2017, and since then the company's growth has been amazing.

In 2018 alone, Juul expanded from around 225 workers to almost 1,500, as more than three quarters, according to analysis estimates.

The company now offers a 70% bid of the US e-commuter market, to ensure that the surveyors consider it well over $ 2bn for sale this year.

  • A hit: Good, bad or not clear?
  • More teenagers are affected – why?

Juul also sold in seven countries outside the USA, and including the UK, Germany and France.

Altria's business is a 35% stake in Juul, The company valued at more than $ 38bn – more than doubled the $ 16bn value that was disposed of during its duration; latest funding in July.

The contract was to # 39; made two founders of Juul founders, according to Forbes. Also, they started their three-year start compared to the market of public registered companies such as Ford and Delta Airlines.

What's special about Juul?

The company does not have a & # 39; The use of a tobacco burning process that causes cancer in traditional buildings.

But in the US, Juul's pods provide more nicotine than many companies of competitive e-packaging – The company says it was hoping to help smokers switch to their products.

The more advanced status is one reason why Juul did.

Analysts also provide Juul flavors, interpretive size and easy to use features, while & # 39; Criticists prevent early advertising campaigns to create a "cool" factor. popular with young people.

There are investors who focus on Juul's financial opportunities; stressing its food that its materials are cheaper than the cigarettes and have more profits.

Why is this?

There are about 38 million adults who smoke cigarettes in the US, according to the Centers for Contamination and Disease, although that number is; fall. The percentage of adult smokers fell from almost 21% in 2005 to around 15.5% in 2016.

Most of this is due to non-clear e-mails.

But Juul – who is committed is based on traditional cigarettes instead of arguing that he does not grow, along with a rapid decline in cigarette sales, consensus.

Juul sells about 25% to 45% of the consumption of cigarettes, and & # 39; estimate that Piper Jaffray analysts.

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AFP

These motions cause enough risk to Altria to pay the highest dollar.

"Although we think Juul was [Altria] over barrel, the best decision in our opinion [Altria] to bite the bar [and] take part in Juul rather than be at risk of being down, "Bonnie Herzog, managing director of Wells Fargo Securities, wrote in a note for clients.

On call with investors, Altria boss, Howard Willard, said he was sure Juul's worth price, saying that Altria had been watching the company's growth over time.

"What was happening all the time they were going over the hopeful growth projections," he said.

So Juul's growth continues?

The connection with Altria should help Juul get its supplies to more stores in the US and its; benefit from Altria's co-operation.

The company is also at the beginning of planning to be the main international expansion, after it's going to do it; travel abroad for the first time in 2018.

But there is a lot of uncertainty in the future.

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Media permissionE-mails taste e & ma; taste "children"

In the United States, where authorities have been using e-smoke among teenagers as a "disease", Juul has announced steps to make use among younger customers, and # 39; including selling some of the dishes that they like – such as mango, creme and cucumber stores.

The company, which is under review by the US Food and Drug Administration (FDA), also disclosures social media accounts and promised $ 30m. research assault as well as youth education and parent.

Moreover, its company has a & # 39; Look at different regulatory challenges – especially restrictions on nicotine levels in some markets, including UK, which may make its pods more distinct compared to it. -toitean.

In the US, Juul sells pods with 5% nicotine with a push – higher than many of the competitors – but in places like the EU it is limited to 1.7%.

And while researchers say that their company's profits are well-preserved above traditional cigarettes, that is to say, at least because they are free from the tax & # 39; built on traditional tobacco.

Analyst Morgan Stanley, Pamela Kaufman, said at this time that Altria's decision to invest in a strategic, though valuable, is the risk of "the FDA control capacity as well ".

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