Between controversy and success, in a few months the “Juul” e-cigarette has become a real social phenomenon in the United States. In three years, the young company valued at 15 billion dollars has succeeded in capturing 70% of the e-cigarette market across the Atlantic. Its devices with a USB key design have been available since today in Great Britain.
JUUL IS NOTHING IN THE UNITED KINGDOM!
After conquering the United States, the brand arrives in Europe. Juul Labs, a manufacturer of electronic cigarettes, has achieved the feat of capturing nearly 70% of the US market within three years. The secret of its success? A device in the form of a rechargeable USB key with a nicotine-based liquid. American teenagers are fans of it. They film themselves smoking - moreover, we now rather say "juuler" - and share the videos on Instagram. A real phenomenon that is happening in the United Kingdom!
Created by two design graduates from Stanford University, located in the heart of Silicon Valley, the company is currently seeking to raise $ 1,2 billion with the aim of expanding internationally. In early July, she claimed to have already succeeded in raising nearly $ 650 million. If it succeeds in completing its fundraising, its valuation would reach 15 billion dollars according to the Wall Street Journal.
Investors see Juul as a solid investment, bolstered by the exponential growth of the company, which achieved sales of $ 245 million in 2017, an increase of more than 300% in one year, reveals the online media Axios. The latter specifies that it could reach 940 million dollars in 2018. With the sale of its electronic cigarettes at 35 dollars and, above all, the sale of its refills charged at 16 dollars, Juul reaches a gross margin of 70%, indicates t -he. In addition, according to an analysis of the American financial group Wells Fargo, the sales in dollars of the company climbed by 783% between June 2017 and 2018.
A MARKET WITH AN INCREDIBLE EXPANSION!
Arriving in the UK, Juul tackles a growing e-cigarette market too. Last year it reached $ 1,72 billion, up 33% from 2016, says strategic market research provider Euromonitor International.
The UK's leading tobacco and electronic cigarette group, British American Tobacco, dominated trade with a 14% market share between its Ten Motives and Vype brands. While its competitors Japan Tobacco (with its Logic brand) and Imperial Brands (with its “Blu” e-cigarettes) represented 6% and 3% respectively. Juul will sell its starter kits in England and Scotland for around 30 pounds, or almost 34 euros. It is much less expensive than the selling price of the kits across the Atlantic where they are bought at nearly 50 dollars (around 43 euros).
