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Juul Labs revenue soars to more than $1 billion in 2018
Juul generates net revenues of more than $1 billion in 2018
By Dawn Kawamoto – Technology Reporter, San Francisco Business Times
a day ago
Altria Group, one of the world's largest marketers and producers of tobacco products, has a new crown Juul in its portfolio.
Juul Labs' generated net revenue in excess of $1 billion in 2018, up from $200 million the year prior. This has made Altria Group, the San Francisco-based electronic cigarette company's largest investor, amped about Juul's potential going forward.
“We are excited about Juul’s domestic growth and international prospects,” said Howard Willard, Altria CEO during the company’s quarterly earnings call.
Last year, Juul sold 473 million refill kit pods that hold the nicotine e-cigarette liquid, a 600 percent spike from 2017. Juul currently is in eight countries, with plans to add additional countries this year, Willard said.
Altria acquired a 35 percent stake in Juul in December for $12.8 billion as traditional tobacco sales take a hit.
The U.S. Food and Drug Administration has been less enthused with Juul over the past year.
Juul announced the Altria investment a month after the FDA said it would reign in the ability for e-cigarette makers to sell to retailers some of their flavored e-cigarette pods. The FDA issued its mandate due to a sharp rise in vaping among minors and young adults.
“We recognize that some of these actions may impact the short-term growth of the e-vapor category,” Willard warned.
In addition to growth concerns, the FDA's crackdown has led to pressure on Juul from the surrounding community and the Port and City of San Francisco.
Juul’s skyrocketing revenue led to rapid headcount growth and need to expand its headquarters. But its current location at the Port of San Francisco’s historic Pier 70 has drawn protests. Community members concerned about having an e-cigarette maker in the midst of minors and visitors who come to the area have called on the port to kick Juul out of the city-owned property.
Juul currently has 292 employees working at its Pier 70 location, where it leases 45,000 square feet in Building 104. It also has a lease for 15,000 square feet in Building 102, but that space is not yet ready for occupancy, according to the Port. San Francisco City Attorney Dennis Herrera represents the Port's interests and has been in discussions with Juul and Orton Development, which holds the Pier 70 master lease with Port.
The city attorney requested information from both Juul and Orton and is currently reviewing the submitted materials to see if Orton and Juul are in compliance with the terms of their respective leases with the Port and local laws.
Juul plans to use Building 102 primarily for office space, while Building 104 is used for product design and development, with plans his larger space for research, development and design of the product line.
Although Juul is conducting R&D at its Pier 70 facilities, the research process and testing does not involve firing up its e-cigarettes, said Ted Kwong, a Juul spokesman. California labor laws prohibit, among other things, the burning, or carrying of lighted or heated tobacco that is intended for inhalation in the workplace. The city attorney’s office has not yet conducted a physical inspection of Juul’s Pier 70 facilities, but it reserves the right to do so, said John Cote, a spokesman for the city attorney’s office.
