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Why is Juul worth $16B? It’s more like a cigarette than you think

39 pointsby nwrkalmost 7 years ago

9 comments

jeffdavisalmost 7 years ago
Cigarettes have all the right metrics for a startup: great user engagement, network effects, negligible per-user costs, sticky and hard to leave.<p>The big invention here is a one-liner: s&#x2F;smoking&#x2F;vaping&#x2F;g.
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danpalmeralmost 7 years ago
It’s interesting how the messaging has shifted over the past ~4 years from vaping being a way to quit nicotine addiction, to vaping being a way to stop smoking cigarettes. I’ve often heard the former from people, but the latter from companies.<p>With the low nicotine liquids coming out, I bet they are low enough that you can’t smoothly transition from higher nicotine content to lower nicotine content. I’m sure they won’t sell a smooth gradient of nicotine levels that help people quit, instead it will just be marketed as “diet vaping” and will be a huge marketing effort that will pain then in a much more positive light without any real loss of lock-in.
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newfocogialmost 7 years ago
Does Juul do any advertising? One of the biggest problems I see in the historical tobacco industry was how subversive the advertising was. I wonder if Juul goes down a similar path.
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Lazarealmost 7 years ago
Something to keep in mind is that the tobacco industry has a ton of money, a demonstrated willingness to play dirty if needed, and a deeply vested interest in undermining companies like Juul.<p>I&#x27;m not saying that the The Verge or Rachel Becker have any intention of defending the tobacco industry from disruptive startups, not am I suggesting that vaping in general or Juul in specific aren&#x27;t be problematic.<p>What I <i>am</i> saying is that there&#x27;s an immense amount of money and effort is being deployed to ensure that people will defend the tobacco industry and will attack vaping, and it&#x27;s always worth being extra cautious. &quot;Where there&#x27;s smoke, there&#x27;s fire&quot; is rarely a useful heuristic, but it&#x27;s extra useless when you know there&#x27;s a guy with a smoke machine around the corner. :)
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dizzystaralmost 7 years ago
Spourious claims about the chemical makeup of vapor? Check.<p>Misinformed statements about what science found about the dangers of vaping vs cigarettes? Check.<p>Citations of studies with no peer review, that likely don&#x27;t say what the article claims? Check.<p>Wrong information about the mechanics of vaping? Check.<p>Boogyman chemistry? Check.<p>No indicative knowledge about how people actually use these devices? Check.<p>What about the children-isms? Double check.<p>Look, I get it. As someone who vapes, I truly do my best to treat it like smoking, which is saying I do my darndest to respect those around me.<p>I don&#x27;t know what to think of Juul. I was told it has 50 mil nic and my jaw hit the floor. Those that vape knows that&#x27;s a crazy number, and obviously these are incredibly low powered devices.<p>People do move from Juul to more advanced setups, and yes, they step all the way down to 12 or 6 mil (nicotine) off the bat and likely go down to 3 mil after a few months.
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akeckalmost 7 years ago
It’s essentially a drug delivery device. I don’t understand how it’s not regulated by FDA.
bra-ketalmost 7 years ago
The great thing about Juul is the lack of chemical aftertaste
mchahnalmost 7 years ago
I&#x27;m not sure why it is called vaping. You can see smoke come out. It uses a heater to burn the juice.
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hymen0pteraalmost 7 years ago
It feels like there&#x27;s a premeditated process, here, in terms of timing.<p>1. Tobacco Cigarettes emerge as public health scare in the late 1990&#x27;s.<p>2. McDonaldsization of Coffee via Starbucks in the late 1990&#x27;s.<p>3. Cigarettes taxed and regulated with punishing costs and counter-media-manipulation.<p>4. Bindings introduced to market coffee with free wi-fi, boosting high-end coffee&#x27;s incidental exposure to novice internet users at a time when caffeine is very-nearly required to negotiate the ever-expanding terrain of new technologies. (it&#x27;s just good business, of course)<p>5. Millions of former nicotine addicts herded away from nicotine to expensive, premium high dose caffeine alternatives, serving as stimulant to wean many down off of nicotine cravings with new habits.<p>6. 20 years later, with ordinary tobacco cigarettes habits all-but-destroyed, across two generations of former users, and new technologies now well established, coffee habits can wind down. A mild campaign against coffee is introduced. See: acrylamide, poor stock performance, racial sensitivity incidents in liminal zones of large franchise chain restaurants.<p>7. Emerging technologies, now ready for maturity may be re-introduced with new players. These entities work to re-normalize a newly engineered and tested concept in managed synthetic addiction, with status symbol oriented marketing plays.<p>Why vaping is anything is beyond me, but I feel like this represents the fundamentals of a broader subversive program to phase out agricultural-plantation-oriented modes of daily-use otc psychoactives that play vital roles in common universal social norms that cut across a wide array of global cultural customs.
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