From: Financial Times
Ecigarette company’s dominance also at risk from tighter regulation
San Francisco vaping start-up Juul Labs has already taken the US by storm and looks set to exceed its initial “aggressive” sales targets for the UK, but analysts say the ecigarette maker’s meteoric rise might finally be curtailed by regulators and competition.
Meanwhile, regulatory changes in the US may dilute the company’s dominance in its primary market. The US Food and Drug Administration is planning to develop an ecigarette product standard that could limit levels of nicotine in ecigarette liquids and result in the removal of existing products from the market. This could “make it harder” for companies such as Juul to take market share, said Owen Bennett, analyst at Jefferies.