The Altria conglomerate, a tobacco industry leader with multiple takeovers, has made the largest deal in recent history. For a whopping $ 12.8 billion, it acquired 35% of Juul, a leading brand in the e-cigarette and vaping industry. Some call this the latest attempt by the conservative business to defeat the novelty, while others say that Altria has come to terms with the growing rejection of traditional cigarettes by customers.
In the early days, Big Tobacco led the e-cigarette market, but Juul saw an incredible 641% sales growth from 2016 to 2017. Today, it accounts for 70% of this segment, and after the deal with Altria, the company's capitalization increased from $ 15 billion at the beginning of 2018 to $ 38 billion.At the same time, the management retains control over the company, and its 1, 500 employees will receive $ 2 billion in bonuses at the end of the year. and awards.
The popularity of Juul is due to aggressive marketing, on the verge of legal framework, a bet on social engineering and promotion of services in social networks. The company has been harshly criticized for its practice of reaching out to consumers directly by offering young people a very wide range of vaporizer mixes. She is not dependent on the supply of tobacco, and the vapes themselves are considered much less harmful than traditional cigarettes. Taken together, this provides an ideal product for young people with a technocratic mindset.
A decade will pass and today's young men and women will become adults who prefer non-flammable analogs of traditional cigarettes. This is an objective reality for which you need to prepare, argue in the leadership of Altria. Therefore, a deal was made that will help the tobacco industry maintain at least the presence of tomorrow's smokers in the information space. However, true Juul fans have already rebelled against this - at one time the brand was a symbol of the transition to less harmful smoking options, an alternative to cigarettes. And now he is acting in concert with former opponents.