Regulators walk back their Juul ban as “smoke-free” alternatives surge
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Puff, puff… take another pass. The FDA said yesterday that it would reverse its 2022 ban on Juul e-cigarettes, which had been on hold pending appeal (hence: why they’re still in stores). While lawmakers had decried the vape biz and accused it of marketing to teens, the FDA’s ban was apparently over a technical issue regarding toxicology data. At the time, news of the ban fueled a wave of bad publicity for Juul, sending it close to bankruptcy. Marlboro maker Altria, which invested nearly $13B in Juul in 2018, ditched its stake last year. Now:
FDA-OK? The reversal has returned Juul’s status to “under review.” FYI: the FDA has approved 23 e-cigs for marketing to consumers.
Puffed up: Juul is the No. 2 vape in the US after British American Tobacco’s Vuse.
Gettin’ smoked by smokeless… While Juul’s struggled to find a charge, Big Tobacco is winning with what it calls “smoke-free” products. Picture: vapes, heated tobacco like IQOS, and nicotine pouches like Zyn. Last quarter, Philip Morris International’s “smoke-free” sales were up 21% on the year as its Zyn pouches went viral. And “smoke-free” products made up 37% of the company’s revenue last year. (In 2021, PMI suggested it might eventually stop selling cigarettes altogether.) Last quarter, Altria’s smoke-free sales were up 6% on the year.
Smoke and mirrors can move markets… Critics have accused vapes of being tech-focused gimmickry targeted at young people (think: USB-like shapes, flavors like blue cotton candy). But skyrocketing sales suggest that smoke-free products — which include vapes — may be here to stay. “Smoke-free” is transforming the cigarette market. In Sweden, where oral-nicotine products like Zyn are popular, it’s expected that by this year fewer than 5% of residents will smoke OG cigs, the lowest rate in the EU.