Econometric study on the JUUL system's market entry in Canada finds vaping product availability could reduce combustible cigarette sales

July 28, 2020

San Francisco (July 28, 2020) -- As part of Juul Labs' ongoing engagement with the public health community, the company today announced findings from a new study at the AcademyHealth 2020 Annual Research Meeting linking the JUUL System's market entry to decreased cigarette sales in Canada. The conference, which took place virtually, focuses on the intersection of health, health care, and policy.

The study, conducted and presented by Dr. Shivaani Prakash, Juul Labs' Director of Health Economics and Policy Research, found that the JUUL System's market entry in Canada likely decreased combustible cigarette sales, especially in urban markets. Using city-level data on cigarette and JUUL System sales in Canada and variation in timing of the JUUL System's market entry in a study, researchers ran econometric difference-in-difference models. They found that within the first 12 months of market entry, market entry and availability of the JUUL System likely led to a 1.5% decrease on average in store-level cigarette sales volume, within one large retailer chain. Overall, this could translate to over 400 million fewer cigarettes sold in Canada within the first year of the JUUL System's market entry.

They also found that the decline in cigarette sales magnified as the JUUL System's market share increased in stores, suggesting that local tobacco market competition plays a strong role in uptake and purchase of vaping products. For every 1% increase in the JUUL System's market share at the store-level, there was an associated 0.5% reduction in cigarette sales.

"This work provides strong evidence that the availability of vaping products could reduce cigarette sales, and suggests that providing alternative nicotine products to adult smokers could drive down combustible cigarette consumption," said Rasmus Wissmann, Vice President of Data at Juul Labs. "Further research is needed to determine the long-term impact of vapor products on cigarette sales, and the net population health impact of such products."

Identifying the impact of vaping products in global markets can help policymakers understand the role of alternative nicotine products in the commercial tobacco product market, and better evaluate the impact of such products.

As part of the Premarket Tobacco Product Application (PMTA) process in the United States, Juul Labs has built a comprehensive research program focused on examining the public health impact of the JUUL System. This includes research on the JUUL System's impact on the individual user, their ability to convert adult smokers from combustible cigarettes, and the net-population impact on public health.

Juul Labs will continue to share results from its science and research program with the public health communities as it works to support the scientific basis for the category, as well as future regulatory filings.
-end-
About the Study

The Impact of Juul Market Entry on Cigarette Sales: Evidence of Store-Level Sales Declines from Canada was presented virtually at the AcademyHealth 2020 Annual Research Meeting.

Researchers used longitudinal panel data to run difference-in-difference panel causal inference models in order to determine if the entry of the JUUL System in a city had an impact on cigarette sales, after controlling for macroeconomic variables and seasonal and location-specific variation with fixed effects. Data points included:Researchers controlled for macroeconomic variables including average store-level cigarette sales prices, temperature, gasoline prices, unemployment rate, and population size. They also ran models to compare results for stores in urban versus rural areas, as well as to compare results between sales of low versus high-priced cigarettes.

About Juul Labs

Juul Labs' mission is to transition the world's billion adult smokers away from combustible cigarettes, eliminate their use, and combat underage usage of our products. We believe that vapor products can offer adult smokers an alternative to combustible cigarettes and, in so doing, reduce the harm associated with tobacco. Nicotine is addictive and can cause certain harms to health. It would be best if no one used any nicotine product. Anyone who smokes should quit. Adult smokers who have not successfully quit should completely switch to potentially less harmful alternative nicotine products. Juul Labs does not want any non-nicotine users, especially those underage, to try our products, as they exist only to transition adult smokers away from combustible cigarettes.

For more information about the company, please visit http://www.juullabs.com.

Media Contact

press@juul.com

Juul Labs

Related Public Health Articles from Brightsurf:

COVID-19 and the decolonization of Indigenous public health
Indigenous self-determination, leadership and knowledge have helped protect Indigenous communities in Canada during the coronavirus disease 2019 (COVID-19) pandemic, and these principles should be incorporated into public health in future, argue the authors of a commentary in CMAJ (Canadian Medical Association Journal) http://www.cmaj.ca/lookup/doi/10.1503/cmaj.200852.

Public health consequences of policing homelessness
In a new study examining homelessness, researchers find that policy such a lifestyle has massive public health implications, making sleeping on the street even MORE unhealthy.

Electronic health information exchange improves public health disease reporting
Disease tracking is an important area of focus for health departments in the midst of the COVID-19 pandemic.

Pandemic likely to cause long-term health problems, Yale School of Public Health finds
The coronavirus pandemic's life-altering effects are likely to result in lasting physical and mental health consequences for many people--particularly those from vulnerable populations--a new study led by the Yale School of Public Health finds.

The Lancet Public Health: US modelling study estimates impact of school closures for COVID-19 on US health-care workforce and associated mortality
US policymakers considering physical distancing measures to slow the spread of COVID-19 face a difficult trade-off between closing schools to reduce transmission and new cases, and potential health-care worker absenteeism due to additional childcare needs that could ultimately increase mortality from COVID-19, according to new modelling research published in The Lancet Public Health journal.

The Lancet Public Health: Access to identification documents reflecting gender identity may improve trans mental health
Results from a survey of over 20,000 American trans adults suggest that having access to identification documents which reflect their identified gender helps to improve their mental health and may reduce suicidal thoughts, according to a study published in The Lancet Public Health journal.

The Lancet Public Health: Study estimates mental health impact of welfare reform, Universal Credit, in Great Britain
The 2013 Universal Credit welfare reform appears to have led to an increase in the prevalence of psychological distress among unemployed recipients, according to a nationally representative study following more than 52,000 working-age individuals from England, Wales, and Scotland over nine years between 2009-2018, published as part of an issue of The Lancet Public Health journal on income and health.

BU researchers: Pornography is not a 'public health crisis'
Researchers from the Boston University School of Public Health (BUSPH) have written an editorial in the American Journal of Public Health special February issue arguing against the claim that pornography is a public health crisis, and explaining why such a claim actually endangers the health of the public.

The Lancet Public Health: Ageism linked to poorer health in older people in England
Ageism may be linked with poorer health in older people in England, according to an observational study of over 7,500 people aged over 50 published in The Lancet Public Health journal.

Study: Public transportation use linked to better public health
Promoting robust public transportation systems may come with a bonus for public health -- lower obesity rates.

Read More: Public Health News and Public Health Current Events
Brightsurf.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.