JUUL Labs are one of only 260 ‘Unicorn’ companies in the world; thus called because they have a worth of more than a billion dollars. They earned this achievement back in 2017 and have so far spent nearly a full year in that privileged position. With an estimated value of $15 billion US – JUUL have come a long way since their founding through Pax Labs in 2015. Achieving this status in just two years is quite an impressive achievement, so we wanted to take a closer look at this E-Cig firm and find out where they went right.
As we all know, the modern preference towards ‘vaping’ as opposed to smoking has become a huge push both by advertisers and by health professionals on a global level. The E-cig produces a perfect compromise and has gone on to help thousands of people give up for good. JUUL emerged as a spin-off around the time that this trend boom began, and they have earned their reward for it a thousandfold.
With regular revenue of over a billion a year Pax Labs really played a smart game with this company. The product they created was so successful that they gave it it’s own brand. Unlike regular E-cigs which can be filled with any liquid, the JUUL takes special refill pods which you need to buy from the manufacturer, ensuring return custom time and time again. With 72% of the market working in their favor and also the most popular brand with the youth market, Juul uses nicotine salts to produce their refined, particular taste.
With a laboratory based in Shenzen, China, JUUL was co-founded by Adam Bowen and James Monsees. The product itself was originally designed as part of a course at Stanford University. The best thing they have done since becoming successful was to patent their method of extracting nicotine salts from tobacco leaves and thereby protect their product. The cigarette itself is said to be long lasting, highly substantial vapor wise and comes in as low as 3% nicotine pods. With huge investors such as Tiger Global Management, Fidelity Investments, Tao Capital and United States Consumer Electronics this is a company that has more funding than it will ever, ever need.
List of Services
Unlike many of the other 259 unicorn companies, JUUL Labs have only the one product/service. They provide their E-Cig’s and refill pods for which their heavy investments in social media marketing are paying dividends. Unfortunately this has been their own downfall in some respects. Their marketing campaigns have been heavily criticized for being targeted at too young an age group and a recent study showed that a small, growing percentage of 15-17 year olds were now vaping. JUUL have had problems with the food and drug watchdog in America too, so it is possible that this company’s downfall will lie in regulation at some point in the future.
Despite health concerns JUUL Labs electronic cigarette brand are taking the world by storm. At the moment they operate in the USA, in Canada and have tried out expansion in Israel. What cannot be questioned is that they are currently dominating the market. The only thing that might interfere with their future success is the emergence of new data regarding how vaping effects the lungs. In the meantime JUUL remains a unicorn, and we wait anxiously to see what happens next.