20 / 50
Goldman:
We poorly calculated the
ratio of pods to device, meaning how
many consumers would stick with it.
We thought at a higher price point
there would be less demand, but noth-
ing else even came close to what we
were doing, so we missed the boat by
comparing it to other products in the
category. We learned we have a high
attachment rate, which is why we’re
able to sell our products at such premi-
um prices. Regarding what happened
in New York, we tried hard to police
it, but the best way to police it is to
make sure they have product available.
We’re trying our best to stop [the price
gouging] because it doesn’t benefit us
or our customers, but it’s a reflection
today of the huge demand for the cur-
rent product.
TBI:
Are your brands catching on in the
tobacco outlet channel and do you think
they have the potential to do well in the
channel moving forward, given the high
price points?
Goldman:
We sell through multiple
channels and tobacco-related stores
have become a bigger and bigger
point of distribution. As consumers
seek out more premium products,
they tend to go back to channels they
are more comfortable with, and so
tobacco stores have an opportunity to
sell a large amount of premium prod-
ucts to satisfy consumer demand. I’m
getting a lot of emails from tobacco
retailers looking to get as much Juul
as they can—the product has crossed
over to adult smokers in all chan-
nels. However, that channel is with
vape stores and c-stores from our
perspective—our issue is with supply.
We need to do a better job on sup-
ply with all the channels, and we’re
working on it.
TBI
:
What was your reaction to the an-
nouncement that NJOY filed for bank-
ruptcy under Chapter 11?
Goldman:
I’ve done a lot of work with
technology companies, and generally
what you find in industries that are
technology-driven around a product is
that it’s important to meet consumer
satisfaction needs, because the ultimate
consumer votes for the best products
by continuing to engage with them. I
don’t know how NJOY ran their busi-
ness, but my overall industry experi-
ence has shown me that those compa-
nies that deliver the best product ex-
periences are going to get the greatest
electric
ALLEY
22
TOBACCO BUSINESS INTERNATIONAL
NOVEMBER/DECEMBER 2016