Has VMR E-Cigarette Company Shut Down?
Earlier this month, JUUL Labs acquired VMR Products, the parent company of V2 e-cigarettes, for US$75 million. There was very little publicity around the deal, and it only came to light through extensive searching. However, some believe JUUL Labs may have
Did VMR E-Cigarette Company shut down? Earlier this month, JUUL Labs acquired V2 E-Cigarette's parent company, VMR Products, for $75 million. There was almost no publicity about this transaction; we only found out through various searches. However, it turns out that JUUL Labs' move has deeper implications!
Rumor has it that the deal between Huabao and JUUL is to allow JUUL to enter the Chinese market! Surprising! Although we don't know how JUUL will achieve its goal through this transaction, do foreigners really see the Chinese e-cigarette market as so promising?
In the eyes of the international e-cigarette community, China has always been a lucrative market for vaping! Our massive number of smokers, stable and mature e-cigarette development environment, and technology have always been attractive! Although JUUL's little maneuver has not escaped the eyes of many media outlets, looking beyond the surface, if JUUL has this idea, do other overseas vape brands not have similar thoughts?
China has always been the world's largest exporter of vape products, and now others want to export to us! This is actually a positive development, indicating that our Chinese vape industry still has enormous growth potential. Consequently, local e-cigarette practitioners should engage in deep reflection on how to effectively convert this potential into energy for the Chinese e-cigarette industry!
Another shocking piece of news is that today someone suddenly revealed a letter from VMR Company stating that VMR will cease operations, meaning it has gone under!
Reading this letter made me feel quite uneasy. VMR stated in the letter that after nearly 10 years of development, it has established a certain brand strength and foundation. However, the industry's development environment has become increasingly difficult, and VMR's products are precisely targeted and regulated by export trade (due to the China-U.S. trade war), significantly increasing their costs and making it hard to sustain operations, thus deciding to cease operations.
The emergence of an e-cigarette company collapsing due to the trade war inevitably brings a sense of sadness; we have lost another player in our "fake bill".
But wait! Something feels off!
Did VMR not just get acquired by JUUL a month ago? Transitioning from its previous owner, Huabao International Holdings, to JUUL, if it goes under so quickly, wouldn't JUUL be at a significant loss? Is this something a vape giant would do?
According to previous reports from foreign media, VMR was a bargaining chip in the transaction between JUUL and Huabao, aimed at allowing JUUL to enter the Chinese market through "undisclosed" channels.
Could it be that JUUL is paying Huabao to fill a hole? Or is there something we don't know behind the scenes?
VMR was previously recognized as one of the largest e-cigarette companies in the U.S. Along with JUUL, they had expressed significant concerns about their profitability even before the trade war tariffs increased. It is surprising that in just a few months, they have ended up in such a situation, even becoming a bargaining chip in a transaction, which is truly lamentable.
In reality, the trade war has severely impacted China and its related export companies. Previously, we only joked about it online, but now we are witnessing the drastic effects of the trade war. We can only hope that this dispute will end soon, allowing vapers to enjoy vaping as simply and joyfully as before, rather than experiencing "permanent shortages."
Rumor has it that the deal between Huabao and JUUL is to allow JUUL to enter the Chinese market! Surprising! Although we don't know how JUUL will achieve its goal through this transaction, do foreigners really see the Chinese e-cigarette market as so promising?
In the eyes of the international e-cigarette community, China has always been a lucrative market for vaping! Our massive number of smokers, stable and mature e-cigarette development environment, and technology have always been attractive! Although JUUL's little maneuver has not escaped the eyes of many media outlets, looking beyond the surface, if JUUL has this idea, do other overseas vape brands not have similar thoughts?
China has always been the world's largest exporter of vape products, and now others want to export to us! This is actually a positive development, indicating that our Chinese vape industry still has enormous growth potential. Consequently, local e-cigarette practitioners should engage in deep reflection on how to effectively convert this potential into energy for the Chinese e-cigarette industry!Another shocking piece of news is that today someone suddenly revealed a letter from VMR Company stating that VMR will cease operations, meaning it has gone under!
Reading this letter made me feel quite uneasy. VMR stated in the letter that after nearly 10 years of development, it has established a certain brand strength and foundation. However, the industry's development environment has become increasingly difficult, and VMR's products are precisely targeted and regulated by export trade (due to the China-U.S. trade war), significantly increasing their costs and making it hard to sustain operations, thus deciding to cease operations.
The emergence of an e-cigarette company collapsing due to the trade war inevitably brings a sense of sadness; we have lost another player in our "fake bill".
But wait! Something feels off!
Did VMR not just get acquired by JUUL a month ago? Transitioning from its previous owner, Huabao International Holdings, to JUUL, if it goes under so quickly, wouldn't JUUL be at a significant loss? Is this something a vape giant would do?According to previous reports from foreign media, VMR was a bargaining chip in the transaction between JUUL and Huabao, aimed at allowing JUUL to enter the Chinese market through "undisclosed" channels.
Could it be that JUUL is paying Huabao to fill a hole? Or is there something we don't know behind the scenes?
VMR was previously recognized as one of the largest e-cigarette companies in the U.S. Along with JUUL, they had expressed significant concerns about their profitability even before the trade war tariffs increased. It is surprising that in just a few months, they have ended up in such a situation, even becoming a bargaining chip in a transaction, which is truly lamentable.
In reality, the trade war has severely impacted China and its related export companies. Previously, we only joked about it online, but now we are witnessing the drastic effects of the trade war. We can only hope that this dispute will end soon, allowing vapers to enjoy vaping as simply and joyfully as before, rather than experiencing "permanent shortages."
