Juul Labs
A $38B e-cigarette company that hooked teenagers on nicotine faced total regulatory destruction.
2015 → 2024
$15B
Consumer/Health
USA
IdeaProof AI Failure Score
What Happened: The Timeline
2015
Juul spins out from Pax Labs
Dec 2018
Altria invests $12.8B for 35% stake, $38B valuation
2019
Youth vaping epidemic, FDA regulatory crackdown
2022
FDA bans Juul from US market (later stayed by court)
2024
Valuation under $1B, Altria writes off $11B+
Root Causes
Juul revolutionized vaping with its sleek nicotine pods, reaching a $38B valuation when Altria invested $12.8B for 35%. But Juul's popularity among teenagers triggered a massive regulatory crackdown. The FDA banned Juul from the US market (temporarily overturned on appeal). Altria wrote down its investment to nearly zero. Juul settled thousands of lawsuits for $1.2B and its valuation collapsed to under $1B. The company represents one of the largest value destructions in consumer product history.
Sources & References
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