World middle-sized investors, who turn the billions, but not tens of billions of dollars, were in a delicate situation. The most successful producer of paper and electronic cigarettes Juul is launching a large-scale campaign to promote its product and already at the start is investing $ 1.2 billion. Reputation risks are enormous, but multiple profits are almost guaranteed. And what should I do?
According to Bloomberg, over the last year, sales of classic cigarettes, paper + tobacco, fell by 4%. Share prices of tobacco companies fly down – Philip Morris by 23%, British American Tobacco by 24%, and Japan Tobacco by 15%. Social advertising campaigns and an increase in excise taxes reduce the interest in smoking, but at the same time, the counterparts of cigarettes at the peak of popularity. During the same period, sales of the Juul brand grew by 700%, every tenth student was delayed by an electronic cigarette, and in social networks a phenomenon called “juuling” was discussed.
The Juul brand has relied on young people and positions their cigarettes as a fashionable and secure accessory for an advanced person. They have a thoughtful design, a wide range of flavors, are easy to use and contain 59 mg of nicotine per serving, which is more than enough for getting used to. Juul has already occupied most of the US electronic cigarette market and is now preparing for expansion into other countries. The official goal of a large-scale PR campaign is “a new generation”. That is, young people, including teenagers.
The spent billions of dollars is just the beginning, the entire amount of investment is estimated at $ 15 billion. With the current assessment of the global electronic cigarette market at $ 5.5 billion, the payback will not be long in coming. A tidbit for independent investors, but only the brand's activity is constantly shaking scandals. The reasons are always the same, the authorities do not like the availability of this product for minors, and those who are imprudent to cooperate with the brand are under attack.js.src = “&version=v2.8”; 'script', 'facebook-jssdk'));