Lottsa | MO Message Board Posts

Altria Group Inc.

  MO website


    30% off entry-level Bronze Patron packages (retails for $250 - reduced to $175)
    includes 2 yrs of Premium Plus service & locks in 30% discount for any future Patron upgrades

    Only 35 spots available (first come, first served)

    BONUS: Purchase your spot over the next 24 hrs & get an extra year of Premium Plus service absolutely free! 

    CLICK HERE to become a Bronze Patron now 

MO   /  Message Board  /  Read Message



Rec'd By
Authored By
Minimum Recs
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board
Msg  12472 of 12860  at  6/6/2019 2:05:34 PM  by


 In response to msg 12471 by  Rice1
view thread

Re: Lottsa

 Likewise, my last post on this.
1) Juul had 70% of the market. How much of that 70% is teens? 
Well, of course no one really knows this. It is illegal to sell JUUL to anyone under 18 in the US. Yet of course they get their hands on it, often after being bought by friends of theirs that are 18 or older. The reported rates of teen use are determined via surveys and polls, not from purchase data. Regardless of who is using it, JUUL has captured in excess of 70% of all e-vapor products now being sold.
So how many customers is that? MO presented a slide at their shareholders meeting last month which showed that in March 2019, 13.1 million Americans had used e-vapor products in the past 30 days. That number clearly indicates a lot of adult users too. The interesting thing about that chart, is this number is actually still lower than the peak reached in 2014 of 15.1 million e-vapor users. Of course in 2014, it was a bunch of new companies all chasing a new technology. In 2016, after consumer dissatisfaction with the existing products, e-vapor use bottomed out at 9 million users. Then, fueled by the introduction of pods and nicotine salts by JUUL, e-vapor has resumed growth to reach its current level of 13.1 million users. But unlike the past when e-vapor sales were fragmented among dozens of competitors, today JUUL is dominating the sales. So regardless of the breakdown of adults/teens, owning in excess of 70% of that market is a lot of sales.
Lastly, I am not sure what your question about teen use was getting at anyway. Of course underage usage has been a big negative when it comes to government scrutiny and public health. But from a purely economic standpoint, teen users are no different than adult users; they are both buying your product.  And in fact, although it is illegal for companies to target them when it comes to nicotine products, they represent the most coveted demographic since they tend to develop brand loyalty and keep using your product for much longer.
And let's be real here. Say the US raises the minimum age limit for cigarettes and e-cigs to 21 this year, which seems likely. Do you honestly believe that people 18-20 that already have a nicotine habit (whether cigarettes or e-cigs) are going to quit immediately until they once again reach the legal age of 21? The ugly truth is that no matter how JUUL got their underage users, intentional or unintentional, most are now likely to remain with them regardless of what laws are passed, barring some complete ban of the product.

     e-mail to a friend      printer-friendly     add to library      
| More
Recs: 1     Views: 134
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board

About Us  •  Contact Us  •  Follow Us on Twitter  •  Members Directory  •  Help Center  •  Advertise
Not a member yet? What are you waiting for? Create Account
Want to contribute? Support InvestorVillage by donating
© 2003-2019 Investorvillage.com. All rights reserved. User Agreement
Financial Market Data provided by