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 Since launching in 2015 Juul has transformed the market in the
United States, where it now accounts for nearly 70 percent of
tracked e-cigarette sales.
Juul says it targets adult smokers, but it has faced scrutiny over
the popularity of its products with teenagers. In April the U.S.
Food and Drug Administration launched a crackdown on the sale of
e-cigarettes and tobacco products to minors, particularly those
developed by Juul Labs.
A day after the FDA's announcement, Juul revealed several
initiatives to address the issue, such as earmarking $30 million to
support government initiatives to raise the minimum tobacco-buying
age.
Grant Winterton, Juul Labs' president for Europe, the Middle East
and Africa, told Reuters that its activities in Britain would adhere
from the start to its new "social and public policy", which calls
for using only adults in its marketing and making sure its brand
ambassadors are older than 28.
"It's true there are too many teens using our product, but they are
far the minority," Winterton said.
Public health advocates are still debating whether e-cigarettes
represent a health risk or potential benefit.
The Juul device will be available in 250 vape shops across the UK by
the end of this week. A starter pack, including the device and four
nicotine pods, will cost about 29.99 pounds ($39.66).
Winterton said Britain was Juul's third market after the United
States and Israel, partly because it has the world's "most
supportive government" when it comes to encouraging smokers to vape.
Also on the radar are France, Germany and Italy.
The San Francisco-based company recently raised $650 million in
equity financing as part of an investment round aimed at raising
$1.25 billion, a securities filing showed last week.
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A source familiar with the matter said the round would be completed
by the end of July and that it valued Juul at more than $15 billion.
Winterton and co-founder James Monsees declined to comment on
company valuation, revenue or growth.
Juul's main rivals are tobacco companies such as Altria <MO.N>,
Philip Morris International <PM.N> and British American Tobacco <BATS.L>,
who also sell e-cigarettes.
Despite many meetings with big tobacco companies, Monsees said he
was not interested at the moment in partnerships or a takeover,
saying their missions were at odds.
If Juul ever believed that a partnership with one of those companies
would help to eliminate cigarettes, then it would take it very
seriously, he said.
Apart from increased scrutiny and competition, Juul also faces
potential U.S. tariffs on its electronic devices, which are made in
China.
"We have a number of different options, but we're still looking at
the implications of the tariffs so we can understand what strategy
would be best for us," Monsees said.
The empty pods are made in China but more of their manufacturing
process is moving to the United States, he added.
(Reporting by Martinne Geller; Editing by David Goodman)
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