Fairview HK: The soon-to-be unchallenged e-cigarette market leader is on a roll

CENTRAL, Hong Kong - Sept. 5, 2022 - PRLog -- Although the regulatory agency appeared to have dealt Juul Labs a lethal blow by rejecting its marketing application for the Juul device and ordering it to remove all of its products from store shelves, Juul received a temporary reprieve from an appeals court, which stayed the order until it could rule on the merits of the case.

Juul is owned in part by tobacco giant Altria Altria Group Inc. (MO), which paid $12.8 billion for a 34% share in the e-cigarette company in 2018. If Juul is unable to persuade a judge that the FDA's decision is "arbitrary and capricious and devoid of significant evidence," as it claims in its application with The United States Court of Appeals for the District of Columbia Circuit, it will be a fatal strike for what was once the top e-cigarette, maybe even leading to bankruptcy.

It would be an ignominious end for this once-promising company, which saw its fortunes plummet after coming under FDA scrutiny for rising teen e-cig use, but it would pave the way for MO competitor British American Tobacco p.l.c. (BTI) to essentially monopolize the industry with its Vuse e-cig.

Juul was the undisputed e-cigarette industry leader, with a near-80% market share but the FDA chastised the firm for its design, marketing and contents, alleging that they influenced youngsters to start vaping.

The government slammed the e-cigarette sector, including retailers, by focusing on illicit sales to minors. The FDA also prohibited all flavoured e-cigarettes, despite their popularity among adults, because minors enjoyed them as well.

Juul replied by launching a $30 million marketing campaign against teen vaping and supporting raising the legal buying age for cigarettes, but the constant barrage of negative headlines around the device slowed sales. Juul's market share has since dwindled and Vuse has surpassed Juul for the first time this year.

Fairview HK Limited is one of the foremost privately owned Asia-Pacific orientated, boutique wealth management firms in Hong Kong. We offer our services to a selected group of families, family offices, institutions and fund managers, you may visit our website https://fairviewhk.com/ or contact us via email.