Juul Halts Sales of Mint Flavored Pods | Financial Buzz

Juul Halts Sales of Mint Flavored Pods

Juul Labs announced on Thursday that the Company has decided to halt sales of its mint flavored pods in the U.S.

The decision comes after a study published in the Journal of American Medical Association found that more than half of teens who vaped used Juul and mint was the most popular flavor among teenagers.

“These results are unacceptable and that is why we must reset the vapor category in the U.S. and earn the trust of society by working cooperatively with regulators, Attorneys General, public health officials, and other stakeholders to combat underage use. We will support the upcoming FDA flavor policy and will follow the PMTA process,” said Juul Chief Executive Officer K.C. Crosthwaite.

Crosthwaite announced that the Company will immediately stop accepting orders from retail partners for the mint flavored pods and will cease the sale of mint pods in the U.S. through its ecommerce site.

Currently on Juul’s site, the Company only sells three flavors: menthol, Virginia tobacco, and classic tobacco. Last month, Juul suspended sales of its flavored pods – mango, creme, fruit, and cucumber. Juul decided to pull its other flavored pods amid pressure from the U.S. Food and Drug Administration. 

However, by pulling its flavored pods from markets, Juul knew that its mint flavored pod sales would skyrocket, according to a former executive. 

The discontinuation of mint flavors can impact Juul’s U.S. sales by as much as 70%, according to a person familiar with the Company’s finances. 

Additionally, a potential ban on flavored e-cigs by the Trump administration can also significantly impact Juul. Local and state legislators are also pushing for similar policies, while some retailers have decided to completely halt e-cig sales in general. 

Juul said it would eventually reintroduce the flavors back into the market if they are reviewed and then approved by the FDA. 

As for now, Juul mentioned in its release that will continue to refrain from lobbying the Administration, suspend all advertisements in the U.S., cease active support of Proposition C in San Francisco, and move forward with a restructuring plan in efforts to regain trust and prevent underage use.

2 Comments