Please ensure Javascript is enabled for purposes of website accessibility

E-Cig Maker Juul Reportedly Exiting 5 European Markets

By Rich Duprey – May 4, 2020 at 11:15AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Increased global pressure causes leading e-cig maker to further restrict its exposure.

Electronic cigarette leader Juul Labs is reportedly ready to withdraw from a handful of international markets because the regulatory environment has become overly hostile to the device.

According to BuzzFeed News, Juul will soon remove its products from shelves in Austria, Belgium, Portugal, France, and Spain.

Juul pods in a tray

Image source: Juul Labs.

Under the glare of global spotlights

The news outlet reports the European Union's strict requirement that e-cigs contain no more than 20 milligrams of nicotine makes it difficult for Juul and other manufacturers of tobacco alternatives to do business there. In the U.S., where there is no nicotine limit for e-cig products, a Juul pod can have as much as 59 milligrams of nicotine.

Austria, Belgium, and Portugal are very small markets for Juul, but the leading e-cig manufacturer generates significant sales from France and Spain. It will exit France by the end of the year, but withdraw from the other countries in July, paring its presence in global markets to a narrow selection that includes Germany, Italy, Russia, and the U.K.

It marks another setback for Juul, which is also under increasing regulatory pressure in the U.S. for its alleged role in the growth of teenage use of electronic cigarettes. The Federal Trade Commission recently announced it was suing Altria (MO 1.83%) over its $12.8 billion investment in Juul, in an effort to force the tobacco company to unwind the deal.

As regulatory scrutiny of Juul has intensified over the past year, Altria has written off most of the investment already. Both companies are also being investigated by the SEC and the Food & Drug Administration.

Rich Duprey owns shares of Altria Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Altria Group, Inc. Stock Quote
Altria Group, Inc.
MO
$41.53 (1.83%) $0.74

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.