Actually Markus Kramer, managing director of Juul in Germany, wanted to put his company on stage this Friday. At the InterTabac in Dortmund's Westfalenpark, the world's largest trade fair for tobacco and smoker supplies, booth WH.B04 was reserved for the US company.
But a few hours before the opening of the exhibition, the lawyers of the e-cigarette manufacturer went to two injunctions of the District Court of Düsseldorf: Juul is no longer allowed to sell its cartridges - so-called Juul pods - for e-cigarettes in Germany, if their nicotine content of the on Packaging, or if the cartouche lacks the crossed-out wheelie bin symbol to dispose of electronic waste.
The Juul competitor Niko Liquids, with his booth at the InterTabac placed next to Juul, had complained about the wrong markings and applied for a sales stop in court. Juul denies the allegations. "We disagree with the provisional decision of the Duesseldorfer district court and will contest this immediately," said a Juul spokesman, on recycling symbol this step has already taken place. "We are convinced that our products in Germany are in line with both German and EU legislation."
Incidentally, the ban only applies to Juul's Germany offshoot, but not the distribution partners. Traders such as Metro or Amazon are likely to resell existing stocks. But you may not get any supplies for weeks. Juul explained that the conversion of production due to the recycling symbol is expected to take three to five weeks.
Ordnungsgeld of 250,000 euros possible
If Juul does not stop supplying the distributors with the products complained of, regulatory fees of up to 250,000 euros are threatened. They would have to be applied for in each individual case by a competitor and could be challenged by Juul. As a rule, such fines are enforced by courts within a few days. Should the management fail to respond, competitors could petition the court to order Juul manager. So it could be that Juul first distributes the objected goods and accepts or complains about possible fines.
Juul is the undisputed number one in the e-cigarette business in the United States, with a market share of more than 70 percent. Within four years, the start-up has increased sales from zero to more than $ 2 billion. End of 2018, the tobacco giant Altria, known for the Marlboro brand, at Juul and acquired for 12.8 billion dollars, 35 percent of the climber. The established tobacco companies are thus trying to make up for the shrinking business with conventional cigarettes.
Juul advertises on all channels, but especially in the social networks to young customers, where the e-cigarette is considered hip. Juul's product, which is available in flavors such as mango, apple or peppermint, is also referred to as the iPhone among e-cigarettes, alluding to Apple's dominant role in the smartphone market. Among adolescents, the term "juvenile" has become established for the use of e-cigarettes.
It was not until the end of 2018 that Juul entered the German market and quickly gained market share with aggressive marketing. Perhaps the Americans have not taken it so well with the legal requirements. Niko Liquids, on the one hand, accuses the competitor of making false claims about the nicotine content of its products. The liquids - called e-liquids - which are vaporized in e-cigarettes are circulating in Germany with various nicotine levels, for example at 16 milligrams per milliliter, at 18 mg / ml or 20 mg / ml, as the case may be how much smokers want their e-cigarettes.
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Juul e-liquids contain less nicotine than the 18 mg / ml stated on the packaging, which the supplier does not deny. However, this does not infringe either the labeling obligation or competition law. They just wanted to put in a buffer so that smokers would not inhale more nicotine than they really wanted. Nico Liquids, on the other hand, claims that Juul simply wanted to save on nicotine, by far the most expensive component of the fluid.
Juul had launched new products at the beginning of August, on which the nicotine indications are corrected. Apparently, but still old Liquids in circulation, the distribution of which the district court forbade until further notice. Juul explains that it is only a matter of small remnants.
Quick change in garbage bin icon difficult
The second allegation, which now leads to a provisional ban on the sale of Juul products, refers to the crossed-out wheeled bin, which must be used to identify all electrical or electronic equipment in the EU. This is to prevent that the electronic waste is disposed of in the normal household waste. For Juul products, the symbol is missing on the cartridge. While Niko Liquids had complained about the wrong nicotine claims in August, the competitor reclaimed the missing bin only a few days ago. Juul is therefore likely to find it difficult to change production quickly and meet the court's requirements.
The impending sales stop hits Juul in a moment, as the suppliers of e-cigarettes are under pressure worldwide. While the inhalers have long been considered a healthier alternative to tobacco, they are now in the criticism, especially because they are very popular with young people. In the US, where 12 million people already consume steam cigarettes, authorities are currently examining almost 100 cases of lung disease suspected of being related to e-cigarette use. Doctors also attribute deaths to the use of e-cigarettes, but it is unclear whether these cases actually used approved liquids or acquired illegal fluids and inhaled via the e-devices.
The US government is considering banning the sale of flavored e-cigarettes, which are in particular demand by young people. In the EU, e-cigarettes are already regulated more strictly, for example, the permitted nicotine content is lower. In Germany, the number of e-cigarette smokers is estimated at two million - with an upward trend. The discontinuation of sales of Juul products - even if it is not justified by health risks - is likely to fuel the discussion about the risks of the products in this country as well.
