Business
Juul: The meteoric rise, and fall, of the e-cigarette company

Juul: The meteoric rise, and fall, of the e-cigarette company

You can't vape with us

Yesterday the FDA announced that Juul cannot sell its e-cigarettes in the US anymore — a huge blow for a company that was recently one of the most highly-valued startups in all of America.

Juul was the brainchild of two graduate students of product design at Stanford who wanted to make cigarettes that were healthier, better smelling... and cooler. They succeeded.

After launching in 2015 it took just a few short years for Juul's e-cigarette to hit the big time. Its USB-stick-looking vaporizer came in flavors like mango, creme and mint and teenagers loved them. By late 2017 they had 20% of the e-cigarette market. One year later they had over 70%. Juul seemed unstoppable, and big tobacco took notice.

Up in smoke

Juul Labs had been spun out of its parent company, and had notched a substantial valuation in private markets as its sales exploded. Then tobacco giant Altria — which owns storied cigarette brand Marlboro among many others — made Juul Labs an offer; $12.8bn for a 35% stake, valuing Juul at $38bn, and making it one of the most valuable startups, or even private companies, in the US.

At the time Altria's offer probably looked half-sensible. In hindsight it might be one of the worst-timed ever. Juul's popularity, particularly with teenagers, brought a regulatory investigation almost immediately, and a ban on some of its most popular flavors swiftly followed.

More Business

See all Business
business

Starbucks issues apology after viral “Bearista” cup meltdown

Holiday cheer turned into chaos this week for Starbucks after the coffee giant’s new “Bearista” holiday cup sent fans into a frenzy. 

Dropped alongside its 2025 holiday menu, the $30 beanie-wearing glass bear tumbler sparked long lines, sellouts, and even in-store scuffles before Starbucks stepped in with an apology.

“The excitement for our merchandise exceeded even our biggest expectations,” the company said in a statement to People. “Despite shipping more Bearista cups to our coffeehouses than almost any other item this holiday season, the Bearista cup and some other items sold out fast.”

Within hours of launch, frustrated fans flooded Starbucks’ social media pages and even store hotlines. Some customers waited in line before dawn and others said their stores received only a handful of cups. In one Houston location, the craze even turned physical, with police reportedly called to break up a brawl. Meanwhile, the cup is already reselling on sites like eBay, with listings topping $600.

“We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused,” Starbucks said. While in-store customers may be upset, investors seem happy about the viral hit, as the stock has risen over 3% on Friday.

If you’re still hoping for a Bearista at market price, that may not be on order: the chain didn’t disclose how many cups were made or whether a restock is planned.

business

Target tells workers to smile, wave, and greet shoppers if they come within 10 feet of them

Target just rolled out a new rule for store employees: smile, make eye contact, and greet or wave when a shopper comes within 10 feet — and if they get closer, within four feet, ask whether they need help or how their day is going, according to a new Bloomberg report.

Dubbed the 10-4 program internally, the rule mirrors rival Walmarts own 10-foot policy, formalizing behavior Target had previously only encouraged.

business

Monster surges on energy drink buzz, while Celsius sinks on distribution concerns

Shares of Monster Beverage climbed 5% after the bell on Thursday, and held most of those gains into early trading on Friday, following strong Q3 results.

The energy drink giant topped market expectations, with quarterly sales up 17% year over year to $2.2 billion and adjusted net profits growing 41% to $524.5 million — 11% ahead of Wall Street’s estimates. In the report, Monster highlighted its zero-sugar line and new product launches, with a stack of novel flavors already released this year, as bright spots.

During a call with analysts, Chief Executive Hilton Schlosberg said that the global energy drink category “remains healthy with robust growth,” The Wall Street Journal reported, adding that demand for more affordable caffeinated drinks is rising as coffee has become “really expensive.”

Meanwhile, rival beverage business Celsius saw shares fall as much as 23% on its Q3 results yesterday — despite beating expectations, with revenue jumping 173% — largely due to concerns about a change in the company’s distribution channel, as its newly acquired Alani Nu brand joins the PepsiCo distribution network.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.