Juul Labs has engaged in discussions with at least three major tobacco companies in an attempt to work out an arrangement that would revitalize the cash-strapped vape manufacturer. The talks are still in early stages.
Juul has spoken with Philip Morris International (PMI), Japan Tobacco Group and Altria Group, seeking a possible sale of the company, a major investment, or a licensing or distribution arrangement, according to the Wall Street Journal.
Why buy Juul now?
It’s unclear if potential partners are interested in buying Juul outright, but some kind of partnership makes sense for all of them. Even purchasing Juul—which means taking on all of the company’s liabilities and reputational problems—could make sense now. Juul has never been weaker and more in need of a savior.
PMI has recently entered the American market, buying snus and nicotine pouch manufacturer Swedish Match. The company also plans to sell its IQOS heated tobacco product (HTP) in the U.S., but has no vaping products authorized for sale here. The process of submitting a premarket tobacco application (PMTA) for a vaping device and seeing it through to FDA authorization can take years.
Jim McDonald – Vaping360 – 2023-01-26.
Want More Investigative Content?
