Smoked

18 September 2019 By Robert Cyran Follow @rob_cyran

Juul Labs started as a safer alternative to smoking, but now lawmakers are treating it as a menace. Its recent $38 bln valuation has likely gone up in flames. That doesn’t mean e-cigarettes won’t be profitable. Margins could even be higher as a niche health aid.

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India banned the sale, production, import and advertising of e-cigarettes on Sept. 18, and Juul Labs said on Sept. 17 that its products were not available on websites in China, just days after entering that market.

Separately, Democratic members of the U.S. House Oversight Subcommittee on Economic and Consumer Policy threatened on Sept. 18 to subpoena Juul for not providing documents relating to the marketing of its electronic smoking devices. Lawmakers are examining whether the firm targeted children.

Altria, the maker of Marlboro cigarettes, took a 35% stake in Juul in December 2018, valuing the company at $38 billion.

As of Sept. 12, there have been 380 cases of lung disease, and six deaths, among e-cigarette users reported to the U.S. Centers for Disease Control and Prevention. Most patients reported using products containing THC, the main psychoactive compound in marijuana, but some said they only used nicotine-based goods.

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