Juul Labs is pausing sales in Indonesia, citing concerns that it can’t stop retailers from selling its high-nicotine e-cigarettes to youngsters in a mostly uncontrolled tobacco sector.
The agency’s decision to withdraw from the world’s fourth most populated country – which has not been previously reported – marks a significant setback for Juul’s larger plans to expand in Asia. The area has been seen as crucial to the company’s growth amid mounting the U.S. legal and regulatory issues over its role in the country’s youth vaping scourge.
Juul had started in Indonesia seven months ago since it was attracted to the country’s permissive regulatory environment, in accordance with a former employee and another source conversant in its Asia sales technique.
The corporation had targeted audience aged 19 to 35.
The Indonesia decision comes after Juul stated in January that it was “reviewing our strategies and operations” in South Korea – where the corporation has faced regulatory scrutiny – due to disappointing sales.
Juul has held off on planned expansions in the Netherlands and New Zealand. The corporation stated it’s taking a “methodical approach” in reviewing its overseas activities on a nation-by-nation basis.