Juul Labs Inc., the fast-growing e-cigarette company, has decided to stop selling most of its flavored nicotine liquids in clay…
Juul Labs Inc., the fast-growing e-cigarette company, has decided to stop selling most of its flavored nicotine liquids in clay markets, according to people familiar with the issue.
The move comes as the Food and Drug Administration prepares to announce sharp restrictions on the sale of such products, part of an effort from the Agency to combat the increasing use of e-cigarettes by teenagers and children.
Juul plans to keep menthol and tobacco-flavored products in stores, and all its tasty products, including cucumber and mango, will continue to be available for sale on its website, the people said. Juul’s website has tools for age verification of purchases of people under 21 years.
The company’s vaporizers, introduced in 201
5, have become the status of teenage status and growing problems in US schools. The device, similar to a USB flash drive, delivers a powerful dose of nicotine from liquid-filled pods. Critics have said that the flavors make it more attractive for minors, and analysts say that the flavored liquids account for most of Juul’s sales.
While traditional cigarette companies like the Marlboro manufacturer
Also sells flavored e-cigarettes, Juul has sprung them on the market. Juul has captured 75% of the US $ 2.5 billion e-cigarette market, according to a Wells Fargo analysis of Nielsen’s data. It does not include online sales.
The San Francisco company was valued at $ 16 billion when it ended a funding round that increased $ 1.25 billion this summer.
FDA Commissioner Scott Gottlieb plans to limit pod-style sales, flavored e-cigarettes like Juul stores that either have minors or have a separate section that children can not come in according to, according to a senior agency official. It would effectively stop the sale of flavored e-cigarettes in most convenience stores and gas stations. E-cigarettes in mentol, mint and tobacco mackerel will remain on store shelves for now.
Dr. Gottlieb had warned in September that he might be able to taste flavored e-cigarettes from the market. He asked Juul, Altria,
British American Tobacco
PLC and other major e-cigarette manufacturers present compelling plans to reduce the use of teenagers or risk getting their products banned.
All companies have since met the Commissioner, but Juul has not yet submitted his formal proposal, people who are familiar with the question have said, and some details about the plan may change before Monday.
Altria in October said it voluntarily took its pod-style e-cigarettes and some of its other flavored weapon products. Altrias e-cigarettes, sold under the MarkTen and Green Smoke brands, are only a small part of the US market.
Write to Jennifer Maloney at [email protected]