Juul Seeks $1 Billion in Financing, with 2022 Revenue of About $800 Million

According to the latest reports from multiple overseas media outlets, vaping manufacturer JUUL is seeking $1 billion in financing, with Jefferies assisting in the fundraising process. Sources familiar with the matter said Juul’s valuation in this round is still unclear, but it is expected to be far below the $38 billion valuation when Altria invested in 2018. Public reports show that Juul secured funding from early investors last November to keep the company out of trouble, while also cutting about 400 jobs and reducing its operating budget. Juul’s 2022 revenue was about $800 million. Related reports indicate that this financing round will help Juul cope with current market challenges and sustain its vaping business. Juul has been hit hard over the past few years, with its market share continuing to decline. Nielsen convenience store data from May showed that its U.S. market share had fallen to 26%, far below Vuse’s 41.8%. Another reason is that Altria has completely given up its 35% stake and instead moved to acquire NJoy, causing Juul’s sales channels to shrink significantly. At present, Juul still appears to be trying to regain the U.S. market through the PMTA process. In GeWu Consumer’s July 20 post, “Juul Makes Another PMTA Push, Age Verification Available Through an App,” we mentioned that Juul Labs announced it had submitted a PMTA application to the FDA for its next-generation platform, the JUUL2, which was already launched in the UK in 2021. Its features include a built-in chip in the pod and built-in Bluetooth in the device, allowing age verification through a connected smartphone app.

In fact, Juul’s current situation is not optimistic. From last year’s layoffs, to Altria abandoning its stake and turning to acquire NJoy, and now to raising funds at a sharply reduced valuation, its financial difficulties are clear. And based on the FDA’s current PMTA review timeline (with applications submitted before September 9, 2020 expected to be reviewed by the end of 2023), Juul is still likely to remain without an approved PMTA for quite some time.

By contrast, NJoy already holds PMTA authorizations for multiple core products, including pod-based and disposable devices that are currently its main products on the market, along with the added support of Altria’s distribution channels. Juul therefore continues to face the risk of ongoing market share declines, and may even eventually be overtaken by NJoy.