Blue Hole New Consumption reported today
June 24 news, Blue Hole has been focusing WeChat headlines on the US e-cigarette top brand JUUL for three consecutive days.
The beginning was the Wall Street Journal's report on Wednesday that the FDA would ban the sale of JUUL, and most recently the FDA officially announced yesterday that it rejected all OF JUUL's PMTA applications, with the ultimate consequence that if JUUL does not seek appeal, then the FDA has the right to immediately enforce juul's sales channels in the United States and request removal.
A Brief History of JUUL Banned: From $38 Billion Behemoth to Trapped Beast
The fate of JUUL represents the global e-cigarette regulatory trend, and how the future development trend of e-cigarette technology will evolve, which is a particularly important news in the e-cigarette industry.
If Han Li, a Chinese pharmacist, is the father of e-cigarettes, then JUUL is the originator of modern bullet-changing cigarettes.
JUUL's greatest contribution was the invention of the nicotine salt.
The invention of nicotine salt has brought the global e-cigarette industry into a new era, directly affecting the development of global e-cigarettes, and all domestic e-cigarettes should be grateful to JUUL.
Before the invention of nicotine salt, the e-cigarette nicotine transmission efficiency was very low, that is, the user's smoking experience was poor, the sense of satisfaction was not strong, and at the same time, high doses of nicotine only played an overstimulation of the throat and did not reach the brain quickly and effectively.
In 2016, nicotine salt was officially patented in the United States, and JUUL began to take off.
One of the names of Chinese will be mentioned, the co-inventor of nicotine salt, Dr. Xing Chenyue, then a JUUL scientist, and now the chief scientist of Xiwu.
Nicotine salts are more penetrating than traditional free alkali nicotine, increasing the level of nicotine that can penetrate the bloodstream at the same time, so it can provide a scheme that can be close to the absorption of real tobacco nicotine by the blood, without overstimulating the throat, and also produce a taste closer to real smoke.
The patent not only allowed JUUL to take off, but also increased the e-cigarette conversion rate of U.S. smokers by a factor of 5, changing the way 30% of U.S. smokers smoke.
In 2018, tobacco giant Altria sacrificed its own e-cigarette products and invested tens of billions of dollars in JUUL, hoping to exchange money for time and market in the next generation of new tobacco products.
At the time, JUUL was valued at $38 billion, and Altria invested $12.8 billion in real money in exchange for a 35 percent stake.
This directly triggered the domestic e-cigarette small cigarette entrepreneurial boom.
Yueke is launching a generation of products in Shenzhen and has begun to give experience packs to CEOs of Internet companies.
At the beginning of 2019, Cai Yuedong brought YOOZ into the field of vision, and At the same time, Zhu Xiaomu's Fulu was also launched, opening the first year of China's e-cigarette entrepreneurship.
JUUL's peak in the United States is also in 2018, the monthly loss is profitable, and the full month is a loss.
The biggest controversy came from the fact that JUUL's marketing method at that time attracted the attention of American teenagers, and with the aura of Apple in the e-cigarette industry, JUUL also became the favorite of American teenagers, triggering the anger of parents.
For adult smokers, JUUL helped them wean off cancer-causing traditional tobacco products, but the rushing JUUL was negligent and even deliberate in the protection of minors.
Once the train starts to start, it is very difficult to stop.
Under outside criticism, the two founders, Adam Bowen and James Monsis, as well as a number of professional managers, left the company one after another, and Olchia officially took over JUUL in September 2019, hoping to manage JUUL in a tobacco control manner.
JUUL also announced that it will stop all product advertising on television, online, and print media in the United States, and will stop lobbying government officials for policies and guidance to support and comply with the final policy.
In keeping with the FDA's law enforcement philosophy, JUUL announced in October of that year that it would stop selling flavored e-cigarettes in the United States, retaining only tobacco and mint flavors.
JUUL's new CEO, KC, said the e-cigarette category must be restarted by winning the trust of society and working with regulators, policymakers and stakeholders to combat underage use while providing alternatives for adult smokers.
According to a survey by the CDC in the United States, 130,000 high school e-cigarette users prefer JUUL in the United States, which is only about 7%. Among middle school e-cigarette users, only 6% prefer Juul.
Puff Bar, Vuse and SMOK are the more popular brands, and JUUL is not the first choice.
However, 3 years later, although JUUL has become a toothless tiger and showed favor everywhere, it is still difficult to escape the FDA's ban on sales, and its valuation has fallen from $38 billion in 2018 to the latest $1.6 billion.
The tiger falls in Pingyang, and the hero is late.
Originally thought that the FDA would spare no mercy to reserve a mouthful of tobacco flavor for JUUL, at least to meet the choices of adult smokers, but did not expect the FDA to wave a big hand, ruthlessly cut off JUUL's thoughts.
Sensei First Death, Pre-Death Sensei.
JUUL then released an official statement today, saying it respects but disagrees with the FDA's findings and decisions and will appeal the exploratory scenario.
According to the regulations, JUUL products do not have to be removed from the shelves for the time being during the appeal period.
JUUL said it continues to believe that we have provided sufficient information and data based on high-quality research to address all the issues raised by the agency. We believe that we have appropriately described the toxicological characteristics of JUUL products, including comparisons with combustible cigarettes and other vapour products, and believe that these data, together with all evidence, meet legal criteria appropriate to protect public health.
In other words, the FDA says its 120,000 pages of toxicology studies did not form a reliability closed loop, which JUUL does not accept.
The FDA rejected it for two reasons.
First, the FDA believes that JUUL has played a role in the epidemic of adolescent e-cigarettes. It's up to you to settle the score, and even if you correct it later, you're going to have to pay the price for it.
Second, the FDA determined that the application lacked sufficient evidence about the toxicological characteristics of the product to prove that the marketing of the product was suitable for protecting public health.
JUUL spent $100 million on this, prepared for two years, and if you want to say that toxicological research is not established, it is estimated that many people in the industry will not agree.
However, the FDA may also feel at a loss, and subsequently said that to date, the FDA has not received clinical information indicating the direct harm associated with the use of JUUL devices or JUUL smoke bombs.
You see, although the FDA says there are no toxicological studies closed-loop, there are no clinical reports of harm now.
So what is the logic of rejection?
We couldn't understand it, and we didn't dare to ask.
Now that JUUL has decided to appeal, let the bullets fly for a while.
By the way, more than 30 e-cigarette companies that have received marketing rejection orders have sued the FDA, and several brands have already received court support.
On October 26 last year, the FDA revoked the marketing refusal order issued to the US e-cigarette company Fumizer and reintroduced its flavored products into scientific review.
On November 6, the FDA punched itself in the face again, withdrawing the targeting of Humble Juice Co. Marketing rejection order for flavored e-cigarette oil products.
In addition, there are also media outlets that the FDA issued a marketing rejection order very casually, first look at the material is not much, if not much, directly rejected.
I really hope that the U.S. court will take a good look into it.
JUUL banned affects all parties
After a brief history of JUUL's ban, blue hole to talk about the impact of JUUL ban on all parties.
1, the impact on the FDA: protect minors, parents will be happy.
FDA has always been a tiger eye for e-cigarettes, from the former director Gotreb, to the former acting director Woodcock, and then to the current director Calliff, the supervision of e-cigarettes has finally settled, the FDA has won the hearts of parents, and its law enforcement image is very favorable.
2, the impact on users: if the world is against JUUL, I am against the world.
A heartbroken e-cigarette user left a message on the web, and if JUUL has millions of followers, I am one of them. If JUUL has ten fans, I'm one of them. If JUUL has only one fan, it's me. If JUUL doesn't have fans, that means I'm no longer on Earth. If the world is against JUUL, I am against the whole world.
3, the impact on JUUL: where is the end of the world is my home.
In order to fully cope with the E-cigarette supervision in the United States, JUUL has withdrawn from overseas markets such as Europe and Asia, focusing on the United States, removing publicity and advertising, and actively stopping the sale of seasoning products, but still cannot get fda recognition, directly banned in the United States, JUUL has become a rootless, drifting duckweed.
JUUL would have set its heart on the bright moon, but the FDA would have followed the ditch.
The world is so big that there is no place for JUUL to stand.
4, the impact on Altria: e-cigarettes are a big failure, a huge investment of 12.8 billion US dollars.
If Wu Xiaobo is allowed to review the book, the title of the book must be the big defeat of e-cigarettes. In three years, the $12.8 billion investment was in vain, and Altria's share price recently fell 10%, almost $10 billion.
Compared with the layout of the next generation of new tobacco, money and market value are not important, Altria originally in order to walk with JUUL, took the initiative to remove its own electronic cigarette products from the shelves, focusing on supporting JUUL, and now the chicken fly eggs fight, money for time, money for the market Dream of failure, want to chase again, it is difficult to go to the sky.
5, the impact on the founders: high point cash out, can be called a classic.
JUUL's two founders, Adam Bowen and James Monsis, have long since left in 2019.
After getting a huge investment in Altria in 2018 and buying old stocks, the two founders turned into billionaires in one fell swoop, dreaming of something, and doing and cherishing, getting money is king.
At that time, they had already felt the accusations of the outside world, JUUL and e-cigarettes had great dreams, but they cashed out first.
6, the impact on competitors: a whale fell to all things.
To date, the FDA has only authorized PMTA applications for 23 e-cigarette products.
NJOY, VUSE, LOGIC e-cigarettes have at least one product that has been approved by PMTA, although it is an ugly and unused product, but it is clear that living has a chance.
After being suppressed by JUUL for several years, these e-cigarette brands will usher in a new opportunity.
No market share is not important, too much is not backward, living is more important than anything.
Even PEMÅ's IQOS is going to die laughing in bed.
IQOS is a heated non-combustible product that has so far reduced harm through PMTA and MRTP, and JUUL is on a par with juul in the two schools of new tobacco.
Now that JUUL is banned, IQOS is afraid to laugh out loud. However, IQOS is currently sued by British American Tobacco in the United States and cannot be put into sale for the time being.
Both Shengyu and He Shengliang. Love each other and kill each other, live with each other.
7. Influence on anti-tobacco advocacy groups: Cheers!
Anti-tobacco advocacy groups in the United States have been designated to celebrate each other, greeting each other, and toasting to juul, an e-cigarette product that reduces harm than tobacco.
8, the impact on the world: you see the United States banned e-cigarettes.
With the FDA's fierce hand, countries around the world may set off a new round of ban on e-cigarettes, with the demonstration effect of the United States, any ban will be justified, after all, the United States is banned.
9, the impact on the country: looking forward to the ocean and sighing, leaving regrets.
The grandfather of the United States is dead, and the domestic e-cigarette believers can only sigh.
After a long sigh in the sky, he bowed his head and silently moved the bricks. After all, its own e-cigarette production license and national standard technical review have not yet landed.
Rabbits die foxes are sad, and things hurt their kind.
Love someone and let him go to England, which is a paradise for e-cigarettes.
Hate a person, let him go to the United States, where the darkness of e-cigarettes is.
Blue Hole's report on JUUL:
It's really cold! The FDA rejected the JUUL Tobacco and Menthol product PMTA application and will not be able to sell it in the United States
Heavy! The U.S. FDA is expected to get Juul e-cigarettes out of the U.S. market
U.S. e-cigarette policy analysis and prediction: all seasonings should be cold, Juul and so on can pass the PMTA
Zero legal authorization for e-cigarettes in the United States: nearly one million flavored products were rejected, and Juul's fate was to be determined