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Common Ground Independent Media


HOW VAPING GIANT JUUL EXPLAINS EVERYTHING THATíS WRONG WITH OUR WORLD

Posted By: oldmaninthedesert
Date: Saturday, 29-December-2018 19:06:10


TWELVE YEARS AGO, e-cigarettes couldnít be found in America. Three years ago, Juul didnít exist. But last Friday, Marlboro manufacturer Altria bought a 35 percent stake in the vaping juggernaut for $12.8 billion. The deal values Juul at $38 billion, a similar market capitalization to that of Target, MetLife, Delta Air Lines, and Ford. Fifteen hundred Juul employees split a $2 billion dividend as a result, becoming instant millionaires overnight.

Juul was an inviting target for Altria because it has captured close to three-quarters of the total e-cigarette market, according to Nielsen data, up from only 2 percent in 2016. Revenues for Juul increased almost 800 percent from 2017 to 2018, with its most explosive growth happening among teenagers. While e-cigarettes donít contain cancer-causing tobacco, they do hook users to a drug thatís hard to quit. By one measure, nearly 20 years of falling cigarette use among 12th-graders has been wiped out by the rise of Juul.

The return to nicotine addiction among adolescents is happening alongside the rapid-fire monopolization of a brand-new market. While traditional tobacco companies all tried their hand at e-cigarettes, there was no legacy of dominant players in the sector and no major barrier to rivals. The fact that an industry established a decade ago so quickly whittled down to one dominant player, which an incumbent cigarette giant then bought into, suggests that our Second Gilded Age is a monopoly-creation machine.

rest of the story here
https://theintercept.com/2018/12/27/juul-vaping-industry-regulation/


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