We are so back.
The FDA has authorized Juul to sell its e-cigarette device and tobacco and menthol-flavored pods in the U.S., reversing a 2022 decision that effectively banned the products and nearly forced the company into bankruptcy.
Regulators determined that Juul’s products could help adult smokers transition away from traditional cigarettes, presenting more public health benefit than risk. The decision followed studies showing significant numbers of adults fully switching to vaping.
Over the years Juul faced a wave of lawsuits, mounting legal settlements, and investor retreat after the 2022 ban. The company slashed its workforce and considered bankruptcy as its valuation collapsed and key backers exited.
Altria Group holds a 35% stake, acquired in December 2018 for about $12.8 billion. The remaining 65% is owned by the co-founders (James Monsees & Adam Bowen) along with other private investors including firms such as Tiger Global and Fidelity. In March 2023, Altria exited its investment and exchanged its stake for rights to Juul’s heated tobacco technology. However, publicly cited records still list Altria as the major minority owner.
With marketing authorization in hand, Juul can now pursue growth, new products, and potential investment. However, public health advocates remain concerned about youth usage, and the FDA stressed that authorization does not equate to product safety. Juul represents about 18% of e-cigarette sales in U.S. stores tracked by Nielsen, according to a Goldman Sachs analysis.
Written by: Gannon Breslin
