Page 86 - Forbes Magazine-September 30, 2018

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BILLIONAIRES TO BE

CIGARETTE BREAKERS
James Monsees and Adam Bowen have cornered the U.S. e-cigarette
market with Juul. Up next: the world.

“CIGARETTES ARE PROBABLY the most suc- the mélange of 7,000 chemicals found in regular
cessful consumer product of all time, and they kill cigarettes. But e-cigarettes have drawn criticism for
more than half of all people who use them long- their popularity among teenagers and the lack of
term,” says James Monsees (above, left), the 38-year- research into their long-term health effects.
old cofounder of Juul Labs, maker of the world’s Monsees is not concerned: “A fairly small per-
most popular e-cigarette. “That got us interested.” centage of underage consumers are creating a lot of
Juul (pronounced jewel) introduced its flash- noise and distracting us from what can otherwise
drive-shaped device in 2015 and has since taken be one of the greatest advances in public health in
over some 70% of the U.S. market. A Juul, which our lifetime.”
transforms a pod of nicotine-laced liquid into In April, however, the Food & Drug Admin-
inhalable vapor, sells for $34.99, while a four- istration requested documents from Juul about
pack of pods goes for $15.99 (some pods contain its advertising and the product’s health impact, to
as much nicotine as a pack of cigarettes). Juul’s investigate whether the company has intentionally
revenue should grow by more than 300% this year, appealed to youth. Monsees says Juul never has and
to roughly $1 billion. The company, which is profit- never will market to underage consumers.
able, is valued by investors at nearly $16.3 billion; The founders are concentrating on expanding
Forbes estimates that Monsees and his cofounder, Juul’s foreign reach. It’ll face opposition overseas,
Adam Bowen, 43, each own about 5% of Juul, too; last month Israel banned the Juul device. “We
BY KATHLEEN CHAYKOWSKI BRIAN TAYLOR FOR FORBES
stakes worth some $730 million each. are 0.5% of the global tobacco market,” Monsees
E-cigarettes are unquestionably safer than says. “We’ve hardly touched the problem we’ve
traditional smokes, containing fewer toxins than come out here to solve.”

30 | FORBES SEPTEMBER 30, 2018