“The Food and Drug Administration is expected to announce that Juul electronic cigarette products can no longer be sold in the United States as soon as Wednesday. The FDA’s campaign to police Juul e-cigarette products has been years in the making. The agency targeted the company for its role in perpetuating a new wave of teenage nicotine use, driven by appealing flavors. Juul conceded to the FDA in 2019 when it pulled all fruit and dessert flavors from the market, though it was permitted to keep marketing menthol- and tobacco-flavored nicotine pods used in the vaping device.
The FDA’s move to pull Juul from the market clears the way for its biggest competitor, Reynolds American, to dominate the e-cigarette market. The FDA declared last fall that four of its Vuse e-cigarettes that use tobacco flavoring could remain on the market after the company successfully demonstrated to the agency that the product offered smokers a less harmful means of satisfying nicotine cravings. Juul products account for 40% of the e-cigarette market, while Reynolds has about 28%“
ARTICLE LINK: FDA to kick Juul vaping products off the market
BIG TOBACCO VAPE MARKET SHARES
“”“This now leaves question marks over the likely outcome of the BAT PMTA (premarket tobacco application) for Vuse Alto,” said Jefferies’ Bennett. “You could make a case this is also at risk given the most recent youth tobacco survey showed its underage prevalence greater than Juul’s.” If the FDA were to also reject British American Tobacco’s application, it would be a “very strange decision,” as it would mean the two biggest brands would be off the market, leaving only one player in the popular pod segment in NJOY.
“If BAT is indeed approved, this would be a big positive as it would then be the largest player by a material distance (NJOY overall market share currently less than 1%),” he wrote.”
ARTICLE LINK: Altria shares slammed by report FDA to ban Juul’s e-cigarettes from U.S. market
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