Juul Labs breaks the billion-dollar revenue mark in 2018
The young American company has seen its sales skyrocket in recent years, and according to recent information, the company’s revenue surpassed one billion dollars in 2018, a staggering amount of money for such a young start-up.
According to the press agency Reuters, Juul devices saw a phenomenal spike in sales in 2018, rising by approximately 600%. 2018 turnover is also up, with an increase of $200,000 compared to 2017. According to estimates made by economic experts, the next few years will continue to break records, with sales projections rising between 15%-20% by 2023.
2018 saw a newfound partnership between Juul Labs and Altria. The cigarette manufacturer of Philip Morris invested a colossal sum of $12.8 billion in order to control one third of Juul Labs. The strategy seems to have paid off, with stocks rising by 1.5% in the third trimester of 2018.
Positive results, but concerns still remain
Juul Labs continues to draw the ire of the FDA. The American regulatory association has criticized the young company for promoting vaping amongst young people, and negotiations and discussions between the FDA and Juul Labs have been ongoing for many months.
Even within the company, issues have begun to emerge. Numerous employees were upset about the merger with Altria, arguing that the partnership went against the entire brand ethos (the term “pact with the devil” was cited numerous times). The CEO of Juul Labs defended the decision, arguing that the merger would help smokers turn towards vaping.
To take its employees’ concerns into account, Juul Labs has offered its 1,500 employees a combined bonus of $2 billion. This bonus will be paid out over 4 years in hopes of quelling all concerns.
