Puff puff? Pass.

In a surprise move, the FDA will order Juul to cease production of its e-cigarettes and take them off the US market, as first reported by the WSJ.

🚭 Driving the move… It’s currently unclear why Juul’s products are being banned, though the WSJ reported that a federal criminal investigation into the company’s marketing practices towards teens is pending.

📅 Background: In early 2020, the FDA banned the sale of fruity and sweet vape flavors following criticism that they were targeted at minors; all US vape manufacturers were also required to submit their products for FDA review to stay on the market.

• For the past two years, regulators have been reviewing thousands of applications for other vaping products, including tobacco- and menthol-flavored Juul pods.
• The FDA had previously cleared the way for two of Juul’s biggest rivals, Reynolds and NJOY, to keep tobacco-flavored vapes on the market, and most industry insiders had expected the same for Juul.

📸 The big picture: Juul is still the most popular vaping brand in the US, with ~37% market share as of a few months ago. Vuse, which is owned by Reynolds, had roughly 34% market share, and NJOY was third with just over 3%.

👀 Looking ahead... Nearly all of Juul’s $1.3 billion in sales come from the US market… so just like Ron Burgundy, this would be kind of a big deal. Juul could pursue an appeal through the FDA, challenge the decision in court, or file a revised application for its products.