Big Tobacco Just spent $12.8B to get a taste of Juul

[Mazinny]

Big tobacco just spent $12.8 billion to get a taste of Juul

Altria, a giant in the world of tobacco conglomerates, just spent $12.8 billion dollars to purchase a 35 percent minority stake in juul, a company that currently dominates the e-cigarette market. This deal puts the value of juul at an eye-popping $38 billion dollars, more than doubling the $15 billion valuation from earlier this year.


That criticism was not lost on Juul’s higher-ups. “We understand the controversy and skepticism that comes with an affiliation and partnership with the largest tobacco company in the US. We were skeptical as well.” Juul CEO Kevin Burns wrote in a statement. “But over the course of the last several months we were convinced by actions, not words, that in fact this partnership could help accelerate our success switching adult smokers.”

As a part of the deal, Altria will let Juul have access to its customer information, allowing it to send Juul advertisements to people who buy Altria. The company also plans to stick Juul messaging directly inside packs of Altria-produced cigarettes. Juul will maintain control of the company, and according to CNBC, it’s 1,500 staff will split a $2 billion bonus.

 

[Eskie]

I guess Juul now has a large enough warchest to take on the FDA. Good for them, maybe not so good for vape PR. The complaint has always been BT is evil (true), lies (true), and manipulates testing to suppress the risks of tobacco use (also true).

Now how to convince the public that any research published showing vaping to be of benefit by reducing risk, as well as having a generally safe profile is not tainted by the sources of funding. The biggest thing vaping had going for public discussion was it isn't BT and therefore more trustworthy. Now as far as the public is concerned, especially given the short attention span of folks is that vaping equals Juuling. And now BT owns part of Juul. Glad I'm not the one who has to think up how to spin that for public consumption.

 

[Mazinny]

What a sweet deal for Juul. In their first round of funding they were valued at $15B, and now just five months later, $38B!

They gain even more shelf space, logistics and distribution, access to consumer info, inserts in cigarette packs etc.... Altria can not increase its stake, can't sell its shares for six years, and has no path to control. The company stays private too.

 

[zoiDman]

... and according to CNBC, it’s 1,500 staff will split a $2 billion bonus.

That is something that will get your Attention during a Employee Meeting.

 

[zoiDman]

...

They gain even more shelf space, logistics and distribution, access to consumer info, inserts in cigarette packs etc.... Altria can not increase its stake, can't sell its shares for six years, and has no path to control. The company stays private too.

Think of Also what JUUL gains from Altria when it comes to FDA Regulation Expertise. As well as Lobbying inroads.

 

[Baditude]

Juul May Get Billions in Deal With One of World’s Largest Tobacco Companies

 

[F-machine]

The lesser evil just went to bed with big daddy. Only the dumbest are surprised this time...

 

[Rossum]

Now how to convince the public that any research published showing vaping to be of benefit by reducing risk, as well as having a generally safe profile is not tainted by the sources of funding. The biggest thing vaping had going for public discussion was it isn't BT and therefore more trustworthy.

Meh. The ANTZ and the media who lapped up their agenda have spent the last five years trying to convince the public that vaping is BT, and the reality until a year or two ago, the vaping products you'd find in a typical gas station or c-store were BT products (Vuse, Mark 10, Blu). Then Juul came along and had tremendous success as an independent, but the media that the public pays attention never bothered to point that out; they kept right on ranting how BT was addicting the children with these new-fangled devices. So while we vaping enthusiasts may look askance at this move, I don't think it will change the general public's perception of the industry much at all.

 

[United States]

Great.

Another giant company sharing info.

Eh, if you can't beat 'em buy 'em I always say.

 

[Rossum]

Another giant company sharing info.

I had a hard-and-fast rule for the last ~15 years I was smoking: Cigarettes were always purchased with cash. My smoking habits were nobody's business and I wasn't going to let anyone track 'em.

 

[ENAUD]

Meh. The ANTZ and the media who lapped up their agenda have spent the last five years trying to convince the public that vaping is BT, and the reality until a year or two ago, the vaping products you'd find in a typical gas station or c-store were BT products (Vuse, Mark 10, Blu). Then Juul came along and had tremendous success as an independent, but the media that the public pays attention never bothered to point that out; they kept right on ranting how BT was addicting the children with these new-fangled devices. So while we vaping enthusiasts may look askance at this move, I don't think it will change the general public's perception of the industry much at all.

Since the "Deeming" vaping product MFG's are tobacco companies, as illogical as that is...when every kid on the playground is taking a swing at you, best to side up with the biggest badest kid on the block! This is a smart move on both sides of the isle <<< Intentional Walmart vaping reference there Juul gets major help in promo data/ user base info for marketing, BT gets a foothold in a winner companies portfolio. I believe we are seeing the real future of vaping here, disposable crap mods that use one time pods that will soon litter the landscape with a never ending stream of discarded empty plastic atties...just like the never ending stream of tossed ciggo butts in every parking lot and local park near you. So glad I got on this train early enough to learn to be self sufficient and removed from the market for the most part...

 

[r77r7r]

Wow, 13B for a Juul! I knew they were pricey. Wait till they have to buy the replacement pods!

 

[Rossum]

So glad I got on this train early enough to learn to be self sufficient and removed from the market for the most part...

Indeed. The only thing I throw away a tiny piece of rayon every few weeks and a small bit of coiled metal every few months. My ongoing expenses per month are roughly equivalent to the cost of a single Juul pod.

That said, I played with a Juul back when they were pretty dang new in 2015 and I'm confident it would have been good enough to get me off the cigs had I started with it.

 

[ENAUD]

That said, I played with a Juul back when they were pretty dang new in 2015 and I'm confident it would have been good enough to get me off the cigs had I started with it.

And that right there is what really matters...as a hardcore smoker with many failed attempts to quit, I would have paid any amount to be free from my monkey on my back...we have seen products come to market that just work, and folks are going to capitalize on this, it's just a natural progression. I have no problem with any aspect of this, just glad that I got into the game when things were fast and loose. The fast and loose aspect of things is going into the shadows in the near future...it is going to be a regulated marketplace. I believe Juul and their ilk will be the predominant factor in a regulated marketplace. Still, no issues from me on this, if Juul had been around when I started, that may well have been the means to an end for me to make the switch...cost was never an issue in my early days. The discovery of DIY was an unforeseen benefit of diving deep into the hobby side of vaping.

 

[smacuser]

Wishing I was the janitor at juul .

 

[Kickingthesticks]

Wow didn't know juul was that big of a corporation. Never even heard of them untill earlier this year

 

[United States]

Wow didn't know juul was that big of a corporation. Never even heard of them untill earlier this year

Juul is like a mushroom. They just showed up one night it seems.