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Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 00:00:11,678 --> 00:00:15,557 The buzz was fantastic. Flavor was cool. 2 00:00:16,766 --> 00:00:18,977 {\an8}I was literally floored. 3 00:00:20,603 --> 00:00:23,106 And it kind of made me feel like a virgin. 4 00:00:26,401 --> 00:00:33,283 My immediate reaction was really like, "This feels exactly like a cigarette." 5 00:00:35,744 --> 00:00:39,414 But I quickly realized, "This isn't the same. This is better." 6 00:00:41,750 --> 00:00:44,252 I remember trying it for a couple of days, 7 00:00:44,836 --> 00:00:49,090 and I realized that I had just... quit smoking. 8 00:00:50,633 --> 00:00:53,053 It was this huge moment for me. 9 00:00:56,681 --> 00:00:58,266 Ever since one puff, 10 00:00:58,349 --> 00:01:01,644 and never again smoked another cigarette my entire life. 11 00:01:01,728 --> 00:01:02,728 Never again. 12 00:01:03,730 --> 00:01:07,400 With the JUUL, they had made something remarkable. 13 00:01:07,484 --> 00:01:09,527 Their one job now is to get it everywhere. 14 00:01:11,905 --> 00:01:13,823 This is a bold product to put out 15 00:01:13,907 --> 00:01:17,327 up against these companies that have existed since forever. 16 00:01:17,410 --> 00:01:21,414 If you know you have a product that is going to change an industry, 17 00:01:21,498 --> 00:01:22,499 that's exciting. 18 00:01:38,973 --> 00:01:41,726 The JUUL came onto my radar in about 2015. 19 00:01:41,810 --> 00:01:45,271 People had been hearing about what this new JUUL thing might be, 20 00:01:45,355 --> 00:01:48,233 and it started to percolate into my brain 21 00:01:48,316 --> 00:01:52,028 {\an8}that there's something bigger and interesting happening here. 22 00:01:53,113 --> 00:01:55,240 {\an8}The reason I was interested in them is because 23 00:01:55,323 --> 00:01:58,868 {\an8}there was this big question going on at the time: 24 00:01:58,952 --> 00:02:02,789 How do we use technology to improve every piece of everybody's lives? 25 00:02:02,872 --> 00:02:05,708 {\an8}You have people like the Uber founders, who say, 26 00:02:05,792 --> 00:02:08,878 {\an8}"I was just trying to get around, and getting a cab was annoying." 27 00:02:08,962 --> 00:02:12,841 {\an8}Or people didn't know where their friends were, so they invented Twitter. 28 00:02:12,924 --> 00:02:18,012 JUUL felt like a particularly high-stakes version of that. 29 00:02:18,096 --> 00:02:21,099 The idea that we can use technology 30 00:02:21,182 --> 00:02:25,937 to improve the lives of a billion people was really appealing. 31 00:02:27,730 --> 00:02:31,276 The first thing you would notice walking into their offices 32 00:02:31,359 --> 00:02:32,902 was that everybody was vaping. 33 00:02:32,986 --> 00:02:34,112 Everybody. 34 00:02:37,240 --> 00:02:40,702 James was a total tech guy. I mostly mean that in a good way. 35 00:02:40,785 --> 00:02:42,537 He was super confident, super smart, 36 00:02:42,620 --> 00:02:45,623 thoughtful about the kind of thing they were trying to do. 37 00:02:47,208 --> 00:02:49,586 He wanted something that felt cool and discreet 38 00:02:49,669 --> 00:02:51,838 {\an8}and wasn't trying to build a better cigarette. 39 00:02:51,921 --> 00:02:55,258 {\an8}He wanted to actually change the experience of smoking. 40 00:02:55,341 --> 00:02:58,344 And the clear sense they had was, 41 00:02:58,428 --> 00:03:00,388 "We have reinvented smoking." 42 00:03:01,598 --> 00:03:03,600 The headline of my article was, 43 00:03:03,683 --> 00:03:06,186 "This Might Just Be the First Great E-Cig." 44 00:03:06,269 --> 00:03:09,063 If you take this thing people enjoy the experience of 45 00:03:09,147 --> 00:03:11,149 but don't want to die from, 46 00:03:11,232 --> 00:03:14,110 and replicate the experience without the bad parts, 47 00:03:14,194 --> 00:03:16,821 that tracked as the right way to think about this. 48 00:03:16,905 --> 00:03:18,990 They had made something remarkable. 49 00:03:20,033 --> 00:03:22,827 {\an8}Appearing in a publication like Wired was huge for them 50 00:03:22,911 --> 00:03:26,414 {\an8}because it lent the company legitimacy as it launched JUUL. 51 00:03:27,290 --> 00:03:30,627 The mission was, make something that had enough nicotine. 52 00:03:30,710 --> 00:03:33,755 you wouldn't feel a need to go back to your combustion cigarette. 53 00:03:33,838 --> 00:03:37,842 We were trying to get smokers away from smoking with various options. 54 00:03:37,926 --> 00:03:40,220 So JUUL offered flavors 55 00:03:40,303 --> 00:03:42,972 {\an8}for the same reason Tesla offers multiple colors. 56 00:03:43,056 --> 00:03:45,058 {\an8}Not everyone's going to like the same. 57 00:03:45,141 --> 00:03:47,602 When we started, we had four flavors. 58 00:03:47,685 --> 00:03:50,730 You cover all bases with fruit, brûlée, mint, 59 00:03:50,813 --> 00:03:54,192 and then tobacco for all your Marlboro Red smokers. 60 00:03:54,734 --> 00:03:57,779 Their flavors had incredibly stupid names. 61 00:03:57,862 --> 00:04:00,531 Like "fruit" was spelled F-R-U-U-T. 62 00:04:00,615 --> 00:04:03,243 And "crème brûlée" was B-R-U-U-L-E. 63 00:04:03,326 --> 00:04:06,996 And "mint" was spelled M-I-I-N-T. 64 00:04:07,080 --> 00:04:11,000 They were just trying so hard that it felt dumb, honestly. 65 00:04:11,084 --> 00:04:13,461 But flavors were a key part of the whole thing. 66 00:04:13,544 --> 00:04:17,548 They wanted to make this not only satiating from a nicotine perspective, 67 00:04:17,632 --> 00:04:19,801 but also enjoyable and pleasant to smoke, 68 00:04:19,884 --> 00:04:22,387 and smells better than your average cigarette. 69 00:04:24,097 --> 00:04:27,558 Your typical vaper doesn't want to smell like a cigarette, 70 00:04:27,642 --> 00:04:30,561 doesn't want to inhale the carcinogens from a cigarette, 71 00:04:30,645 --> 00:04:32,855 or just wants some different flavors. 72 00:04:33,815 --> 00:04:37,151 I thought the names were stupid, but the idea was pretty smart. 73 00:04:39,028 --> 00:04:42,657 James and Adam created a product that seemed like it would work well 74 00:04:42,740 --> 00:04:44,158 and be attractive to users. 75 00:04:44,867 --> 00:04:46,619 But there were still issues. 76 00:04:47,412 --> 00:04:49,247 Pods were a problem. 77 00:04:49,831 --> 00:04:52,667 We did not have a 100% yield, anywhere near that. 78 00:04:53,251 --> 00:04:55,378 You set out to make a hundred, 79 00:04:55,461 --> 00:04:58,089 {\an8}we maybe ended up with eight that were good. 80 00:05:00,842 --> 00:05:04,220 A lot of people got a squirt of nicotine into their mouth 81 00:05:04,304 --> 00:05:06,097 when they would inhale. 82 00:05:06,180 --> 00:05:09,809 One employee said he got crème brûlée liquid in his mouth so often 83 00:05:09,892 --> 00:05:13,062 that he now can't eat crème brûlée because it was so disgusting. 84 00:05:13,855 --> 00:05:16,858 To get a battery in there, tubes in there, 85 00:05:16,941 --> 00:05:20,862 to get the pods small enough to work, was a technical challenge. 86 00:05:20,945 --> 00:05:26,117 {\an8}People would say, "We need a bigger unit." James refused to budge on the unit size. 87 00:05:26,200 --> 00:05:28,995 {\an8}He really liked the way that unit looked. 88 00:05:29,662 --> 00:05:32,915 That's what a visionary does. He's an artist. 89 00:05:32,999 --> 00:05:35,710 {\an8}But, you know, we were rushed. 90 00:05:35,793 --> 00:05:38,046 {\an8}About a month before the original launch date, 91 00:05:38,129 --> 00:05:40,173 we didn't have a way to fill pods yet. 92 00:05:41,090 --> 00:05:44,093 James told them, "You have to figure the problems out." 93 00:05:44,177 --> 00:05:45,803 "You have no other choice." 94 00:05:45,887 --> 00:05:50,224 {\an8}Ever heard the adage, "When in doubt, ship it"? 95 00:05:58,733 --> 00:06:01,778 {\an8}There was pressure to get this product out there. 96 00:06:02,362 --> 00:06:06,157 PAX, a loose-leaf tobacco and cannabis vaporizer, 97 00:06:06,240 --> 00:06:08,993 was the engine from a financial perspective. 98 00:06:09,077 --> 00:06:13,581 But we started to see some PAX revenue wane. 99 00:06:14,207 --> 00:06:16,584 {\an8}At the same time, Japan Tobacco International, 100 00:06:16,667 --> 00:06:18,544 {\an8}who was a major investor, 101 00:06:18,628 --> 00:06:21,422 was growing uncomfortable with how much the PAX devices 102 00:06:21,506 --> 00:06:23,800 were becoming associated with marijuana. 103 00:06:23,883 --> 00:06:27,553 JTI said, "We can't be part of a company involved with cannabis, 104 00:06:27,637 --> 00:06:29,097 so we're going to part ways." 105 00:06:29,680 --> 00:06:32,558 {\an8}So in the end, we paid them the $10 million back. 106 00:06:32,642 --> 00:06:35,561 {\an8}In some ways, splitting with JTI was actually a good thing. 107 00:06:35,645 --> 00:06:37,772 Many employees felt uncomfortable 108 00:06:37,855 --> 00:06:40,691 that a tobacco company was a major investor. 109 00:06:40,775 --> 00:06:42,652 JUUL wanted to be a tech company 110 00:06:42,735 --> 00:06:45,780 and didn't want to be dragged down by the stink, so to speak, 111 00:06:45,863 --> 00:06:47,281 of the tobacco industry. 112 00:06:48,616 --> 00:06:52,120 {\an8}At that point in time, getting a reliable, solid product 113 00:06:52,203 --> 00:06:56,999 {\an8}that we could start ramping manufacturing on was the biggest focus. 114 00:06:58,042 --> 00:07:01,295 {\an8}Investors had been pouring money into the company for years, 115 00:07:01,379 --> 00:07:03,589 {\an8}and they were antsy for some of that money back. 116 00:07:03,673 --> 00:07:07,677 {\an8}So James and Adam knew that they needed JUUL to sell, and to sell really well. 117 00:07:08,511 --> 00:07:14,350 It's hard for a company to have a mission it believes in and cares deeply about 118 00:07:14,434 --> 00:07:17,603 {\an8}and a board who wants tons of growth. 119 00:07:17,687 --> 00:07:21,899 {\an8}"I gave you millions of dollars, and you owe me billions of dollars." 120 00:07:21,983 --> 00:07:25,069 "If we make the world a better place in the meantime, fantastic." 121 00:07:25,153 --> 00:07:27,993 If a company doesn't make profit, it's not gonna last long. 122 00:07:28,072 --> 00:07:29,449 Public health first, 123 00:07:29,532 --> 00:07:32,577 but you can't have public health if nobody buys the product. 124 00:07:32,660 --> 00:07:37,790 Silicon Valley is known for these big, iconic companies, 125 00:07:37,874 --> 00:07:39,959 {\an8}but what we don't remember 126 00:07:40,042 --> 00:07:43,337 {\an8}is the graveyard of start-ups that is also Silicon Valley. 127 00:07:43,921 --> 00:07:48,050 And so when a company is going to market for the first time, 128 00:07:48,134 --> 00:07:51,554 it's really important to get it right. 129 00:07:53,139 --> 00:07:56,142 You only have one chance to make a first impression. 130 00:07:56,225 --> 00:07:58,936 So I, uh... I love smoking. 131 00:08:00,146 --> 00:08:02,815 And uh, I know I'm not alone in this. It's been... 132 00:08:02,899 --> 00:08:06,694 James is extremely confident and believed in himself very deeply, 133 00:08:06,777 --> 00:08:09,947 but it started to become apparent that he was not the kind of founder 134 00:08:10,031 --> 00:08:14,118 who could become his own brand and sell the company to the world. 135 00:08:14,202 --> 00:08:18,289 We're not an activist company. We're not prescriptive in our products. 136 00:08:18,372 --> 00:08:22,793 If you don't like what we're making better than cigarettes, 137 00:08:22,877 --> 00:08:24,378 then have a cigarette. 138 00:08:24,462 --> 00:08:27,757 That's fine. We're not against that... 139 00:08:27,840 --> 00:08:30,927 It was incredibly jarring to hear somebody say something like, 140 00:08:31,010 --> 00:08:33,679 "If you don't like our product, go smoke a cigarette," 141 00:08:33,763 --> 00:08:36,474 because the whole idea of the company 142 00:08:36,557 --> 00:08:39,977 had been built on the fact that cigarettes are bad for you. 143 00:08:40,061 --> 00:08:44,565 He might say, in like, the context of talking to a journalist, 144 00:08:44,649 --> 00:08:46,651 {\an8}exactly what he believes, 145 00:08:46,734 --> 00:08:52,198 {\an8}as opposed to whatever is the most beneficial thing to say for the company. 146 00:08:52,281 --> 00:08:54,992 I don't think that he had a very good handle 147 00:08:55,076 --> 00:08:58,955 {\an8}on what it was that we were going to do by way of marketing. 148 00:08:59,914 --> 00:09:04,710 It's really important that you get the strategy and the execution right. 149 00:09:04,794 --> 00:09:06,420 The stakes are incredibly high. 150 00:09:07,213 --> 00:09:09,173 As JUUL's launch date got closer, 151 00:09:09,257 --> 00:09:12,093 James needed someone he could rely on to sell it. 152 00:09:12,176 --> 00:09:14,762 He had someone at the company who'd already proven himself 153 00:09:14,845 --> 00:09:16,597 to be a talented marketer. 154 00:09:21,894 --> 00:09:25,439 Richard Mumby first joined the company as a marketing consultant, 155 00:09:25,523 --> 00:09:29,694 {\an8}and he was the polar opposite of your typical Silicon Valley bro. 156 00:09:29,777 --> 00:09:31,904 He had a degree from Dartmouth, 157 00:09:31,988 --> 00:09:34,574 he'd worked at fashion start-ups in New York City, 158 00:09:34,657 --> 00:09:37,702 and he was basically a social media influencer. 159 00:09:38,286 --> 00:09:43,457 {\an8}Every time I met Richard Mumby, it felt like he knew exactly what he was doing. 160 00:09:43,541 --> 00:09:47,670 Like he was prepared for every interaction that he had during the day. 161 00:09:47,753 --> 00:09:51,507 He kind of exudes confidence, and it's intoxicating. 162 00:09:52,550 --> 00:09:56,137 James entirely trusted him to run everything to do with marketing, 163 00:09:56,220 --> 00:09:57,930 so that's what Mumby did. 164 00:10:02,101 --> 00:10:06,856 {\an8}Richard Mumby is a dumbass fuck who I never want to meet again, 165 00:10:06,939 --> 00:10:10,109 {\an8}and I believe he had a big hand in ruining JUUL. 166 00:10:12,069 --> 00:10:15,781 I had worked with Richard on different marketing initiatives, 167 00:10:15,865 --> 00:10:19,243 so he reached out and told me about an exciting opportunity he had 168 00:10:19,327 --> 00:10:23,080 {\an8}in San Francisco, and asked me if it'd be something I'd be interested in. 169 00:10:23,664 --> 00:10:29,045 I have a career specializing in luxury advertising, lifestyle advertising. 170 00:10:31,005 --> 00:10:33,674 I'm not trying to flex, this is not about my vanity, 171 00:10:33,758 --> 00:10:36,344 but if you're a start-up and you want to be relevant, 172 00:10:36,427 --> 00:10:40,640 you need a douse of sexy, I'd be the guy they would call. 173 00:10:40,723 --> 00:10:44,101 ♪ When I'm sitting here Knowing this ain't real ♪ 174 00:10:44,185 --> 00:10:47,438 Baillie had a colorful reputation in the fashion world. 175 00:10:47,521 --> 00:10:49,273 He was sort of seen as a party boy, 176 00:10:49,357 --> 00:10:53,861 always surrounded with models and DJs and influencers. 177 00:10:53,944 --> 00:10:55,946 But he was definitely seen as somebody 178 00:10:56,030 --> 00:10:58,407 who could make a product look cool and sell it. 179 00:10:58,491 --> 00:11:02,078 When you look under the hood of advertising, what is it really about? 180 00:11:02,161 --> 00:11:05,748 Desirability is imperative if you're launching something, right? 181 00:11:09,585 --> 00:11:13,923 And the whole vaping thing was really goofy. 182 00:11:15,091 --> 00:11:16,676 Gnarly fucking plumes. 183 00:11:18,010 --> 00:11:21,597 If you told somebody about e-cigarettes in the first half of 2010s, 184 00:11:21,681 --> 00:11:23,962 {\an8}they wouldn't have any idea of what you were talking about 185 00:11:24,016 --> 00:11:25,976 {\an8}or would think that sounds lame and nerdy. 186 00:11:26,977 --> 00:11:30,523 Everybody had either these things that looked like cigarettes 187 00:11:30,606 --> 00:11:33,442 but were worse, like a fake cigarette, 188 00:11:33,526 --> 00:11:36,570 or these huge monster rigs 189 00:11:36,654 --> 00:11:39,990 that would make these crazy, giant clouds of smoke. 190 00:11:41,242 --> 00:11:43,619 James and Adam wanted JUUL to be seen 191 00:11:43,703 --> 00:11:48,416 as a luxurious, sophisticated product that people would not be embarrassed to use, 192 00:11:48,499 --> 00:11:52,294 unlike some vaping products that had been seen as dorky and uncool. 193 00:11:53,003 --> 00:11:56,882 I mean, there's a barren wasteland of awful, tacky stuff. 194 00:11:56,966 --> 00:12:00,511 Even the mainstream brands that were putting out devices 195 00:12:00,594 --> 00:12:04,265 were so corny. It was just, like, "Wow." 196 00:12:05,099 --> 00:12:09,103 It felt as though we were playing in amateur leagues. 197 00:12:11,230 --> 00:12:15,651 It really struck me that the devices looked like Stanley Kubrick's monolith 198 00:12:15,735 --> 00:12:18,320 in Space Odyssey, 2001. 199 00:12:18,404 --> 00:12:22,032 The godlike presence of that device in those films, 200 00:12:22,116 --> 00:12:25,619 and the mystery behind it, was a huge inspiration for me. 201 00:12:26,203 --> 00:12:28,289 I also had Apple on the mind, 202 00:12:28,372 --> 00:12:31,250 the way that Apple markets their products. 203 00:12:31,333 --> 00:12:35,004 They're beautiful, sumptuous objects to be worshiped. 204 00:12:35,087 --> 00:12:38,048 But how do you dial up that appeal? What does that look like? 205 00:12:38,132 --> 00:12:42,845 And it comes from a lot of strategy, some research, and some instincts. 206 00:12:42,928 --> 00:12:45,973 It's like, how do you get it on people's radar? 207 00:12:49,351 --> 00:12:55,316 Launch campaigns are arguably the most critical factor 208 00:12:55,399 --> 00:12:57,985 in an early-stage start-up's existence. 209 00:12:58,068 --> 00:13:00,905 It's through that launch campaign 210 00:13:00,988 --> 00:13:03,949 that you're actually accelerating, or otherwise, 211 00:13:04,033 --> 00:13:06,160 the potential growth of the company. 212 00:13:06,243 --> 00:13:08,871 And if you get a launch campaign wrong, 213 00:13:08,954 --> 00:13:11,373 then you don't really get a second chance. 214 00:13:12,583 --> 00:13:15,669 San Fran was this e-comm start-up hub. 215 00:13:15,753 --> 00:13:19,673 Everyone was setting up camp, but from a style perspective... 216 00:13:19,757 --> 00:13:21,842 I don't know if I should say this, but... 217 00:13:21,926 --> 00:13:26,388 We've got a bunch of Zuckerberg-type dudes coming from Stanford, 218 00:13:26,472 --> 00:13:31,435 and they were out of touch with being relevant and cool. 219 00:13:31,519 --> 00:13:35,815 And so if we're using people in these ads, 220 00:13:35,898 --> 00:13:38,108 what do they look like? Who are they? Where are they? 221 00:13:39,735 --> 00:13:41,904 When I started working with Richard, I said, 222 00:13:41,987 --> 00:13:45,199 "Look, Vice Magazine, Williamsburg, 223 00:13:45,282 --> 00:13:47,535 this is where it's all going down." 224 00:13:47,618 --> 00:13:48,911 He immediately agreed. 225 00:13:50,204 --> 00:13:54,083 During this period, a huge inspiration to me was Terry Richardson. 226 00:13:54,166 --> 00:13:57,795 He had his finger on the pulse of what was happening culturally. 227 00:13:57,878 --> 00:14:02,508 It's the President, the next day it's Beyoncé, and then it's Rihanna. 228 00:14:03,175 --> 00:14:05,886 Richard gravitated to that approach. 229 00:14:06,846 --> 00:14:11,475 The overarching theme that we developed was "Come As You Are," 230 00:14:11,559 --> 00:14:13,310 the Nirvana song, right? 231 00:14:13,394 --> 00:14:15,938 The idea is come as you are. You're not gonna be styled, 232 00:14:16,021 --> 00:14:19,358 you don't need to do your hair and makeup. Like, be yourself. 233 00:14:19,441 --> 00:14:22,987 We had a bunch of this stuff where the JUUL was worked into 234 00:14:23,070 --> 00:14:25,114 what you would call a lifestyle scenario. 235 00:14:25,197 --> 00:14:28,367 A lot of folks in advertising think lifestyle is a cheap trick. 236 00:14:28,450 --> 00:14:32,204 Get someone who's good-looking, handsome, give him anything, it's gonna work. 237 00:14:33,581 --> 00:14:35,541 But I think it definitely works. 238 00:14:38,210 --> 00:14:41,297 Richard presented the work to the founders, 239 00:14:42,006 --> 00:14:46,385 and I don't recall specific feedback. 240 00:14:46,468 --> 00:14:50,431 There were just certain devices that they gravitated towards. 241 00:14:50,514 --> 00:14:51,765 They liked the color. 242 00:14:51,849 --> 00:14:56,228 They liked that that design motif came back to the device. 243 00:14:56,312 --> 00:14:58,564 Everybody signed off on the creative, 244 00:14:58,647 --> 00:15:01,775 and we were ready to start into production on these shoots. 245 00:15:02,818 --> 00:15:06,280 You've got Adam and James, who had this problem, 246 00:15:06,363 --> 00:15:09,617 they had this technology, they were going to solve the problem. 247 00:15:10,284 --> 00:15:11,911 But then in walks Richard, 248 00:15:11,994 --> 00:15:15,789 and Richard clearly not interested in the mission, 249 00:15:15,873 --> 00:15:19,460 but sees a massive opportunity to drive growth. 250 00:15:21,253 --> 00:15:24,924 I think everyone was mindful of that mission statement. 251 00:15:25,007 --> 00:15:28,302 I think once we went down the approved path, 252 00:15:28,385 --> 00:15:31,221 it just became something completely different. 253 00:15:32,473 --> 00:15:36,060 There was no talk of mission statements on the photo shoot. 254 00:15:36,143 --> 00:15:40,189 And sometimes when you're bringing a brand's mission statements to life, 255 00:15:40,272 --> 00:15:42,149 it doesn't work consumer-facing. 256 00:15:42,816 --> 00:15:48,238 So the direction we decided to take was more focused on the cool factor, right? 257 00:15:49,657 --> 00:15:54,495 Their initial idea was conceived with a particular use-case, 258 00:15:54,578 --> 00:15:56,830 somebody who's already smoking, 259 00:15:56,914 --> 00:16:01,543 and Richard took it into a completely different demographic 260 00:16:01,627 --> 00:16:05,297 based on a lifestyle proposition of urban cool. 261 00:16:08,759 --> 00:16:10,344 I was 17 at the time, 262 00:16:10,427 --> 00:16:14,723 when my friend messaged me about just a random party. 263 00:16:16,517 --> 00:16:18,394 {\an8}So... let me hit this real quick. 264 00:16:20,062 --> 00:16:21,062 {\an8}Mmm. 265 00:16:22,356 --> 00:16:25,651 Also, anything I say about fake IDs is like, not an issue, right? 266 00:16:25,734 --> 00:16:27,861 - No. - Okay, just want to make sure. 267 00:16:28,612 --> 00:16:32,032 It's an open bar. Who doesn't love free alcohol? Obviously. 268 00:16:32,116 --> 00:16:34,576 So we were like, "Let's just go check it out." 269 00:16:34,660 --> 00:16:37,705 But we had no idea what we were walking into. 270 00:16:38,288 --> 00:16:41,250 You were greeted by someone with a Polaroid camera. 271 00:16:42,126 --> 00:16:45,587 The pink and the blue really set the vibe. 272 00:16:46,422 --> 00:16:48,340 They definitely had the right ambiance. 273 00:16:50,676 --> 00:16:53,679 ♪ You're getting high on your own supply ♪ 274 00:16:56,974 --> 00:16:58,475 They had great DJs playing, 275 00:16:58,559 --> 00:17:04,273 and on all the projections, they had "JUUL" on the walls. 276 00:17:04,356 --> 00:17:06,025 And they all had hashtags on them, 277 00:17:06,108 --> 00:17:09,486 which gave us the cues for what to put into our posts. 278 00:17:09,570 --> 00:17:15,492 So I remember I used the #JUUL, # VAPORIZED, #JUULvapor. 279 00:17:15,576 --> 00:17:18,078 We were told to post it anywhere we wanted. 280 00:17:18,162 --> 00:17:20,414 So, Twitter, Instagram. 281 00:17:21,040 --> 00:17:23,542 You know, we were dancing, having fun. 282 00:17:24,251 --> 00:17:27,296 There was a lot of coughing going around the room that night. 283 00:17:28,297 --> 00:17:29,777 My first hit of the JUUL... 284 00:17:32,634 --> 00:17:35,512 ...was different from others because I didn't cough the first time. 285 00:17:35,596 --> 00:17:37,723 So that's what kind of turned me on to it. 286 00:17:39,183 --> 00:17:42,144 Me and my best friend used to smoke Newports. 287 00:17:42,227 --> 00:17:45,064 I realized it was stronger. It had a different effect. 288 00:17:45,147 --> 00:17:47,524 And I do remember thinking, like, "Oh." 289 00:17:47,608 --> 00:17:50,444 "Is this what a cigarette is supposed to be like?" 290 00:17:50,527 --> 00:17:53,238 Or if maybe I'd been smoking cigarettes wrong or something. 291 00:17:54,031 --> 00:17:56,700 One thing I liked about it was the sleekness 292 00:17:56,784 --> 00:17:59,369 did remind me of the sleekness of an iPhone. 293 00:18:02,247 --> 00:18:04,917 The first flavor I tried was the fruit flavor, 294 00:18:05,000 --> 00:18:07,586 but flavor of choice was mint. 295 00:18:08,921 --> 00:18:11,757 I remember a lot of my friends saying that they didn't like it, 296 00:18:11,840 --> 00:18:13,383 but I took two devices home. 297 00:18:17,304 --> 00:18:20,641 They wanted a small takeover at Times Square. 298 00:18:20,724 --> 00:18:22,851 I walked down there with a couple cameras. 299 00:18:25,938 --> 00:18:27,940 I was just like, "Wow." 300 00:18:34,404 --> 00:18:36,907 The way the whole thing was orchestrated, 301 00:18:36,990 --> 00:18:40,994 the way the animation sequences went around the corner, was incredible. 302 00:18:41,078 --> 00:18:43,413 What a platform to see your work displayed in. 303 00:18:43,497 --> 00:18:44,790 It was really exciting. 304 00:18:48,001 --> 00:18:51,296 {\an8}After the launch party, the strategy was to get JUUL 305 00:18:51,380 --> 00:18:53,590 {\an8}in front of as many people as possible. 306 00:18:53,674 --> 00:18:55,551 {\an8}JUUL needed to be successful 307 00:18:55,634 --> 00:18:59,012 {\an8}to satisfy the board and investors and people at the company. 308 00:18:59,096 --> 00:19:01,849 But the challenge was that they didn't yet have the budget 309 00:19:01,932 --> 00:19:05,394 to put together a huge, elaborate launch campaign. 310 00:19:05,477 --> 00:19:09,064 Part of their strategy was to get boots on the ground 311 00:19:09,148 --> 00:19:13,443 and have pop-ups in key cities to get the device out there in the world. 312 00:19:14,194 --> 00:19:16,572 Our mind state was getting them in places 313 00:19:16,655 --> 00:19:19,867 where we knew people of influence were around or were going to. 314 00:19:19,950 --> 00:19:22,494 We had little sampling tips, 315 00:19:22,578 --> 00:19:24,496 {\an8}and we would treat it like a hookah lounge. 316 00:19:24,580 --> 00:19:28,458 Sampling became a very intrical part 317 00:19:28,542 --> 00:19:31,503 of all the campaigns that we did. 318 00:19:31,587 --> 00:19:34,965 {\an8}And I'd see these big, burly guys doubling over. 319 00:19:37,801 --> 00:19:39,178 {\an8}Wiping the tears. 320 00:19:39,261 --> 00:19:41,471 "Wow. Can I have another?" 321 00:19:42,055 --> 00:19:45,434 The Vaporized campaign was exquisite 322 00:19:45,517 --> 00:19:50,314 at getting the coolest kids to promote the JUUL product 323 00:19:50,397 --> 00:19:51,607 on their own social media. 324 00:19:51,690 --> 00:19:54,193 You started to see booths pop up at parties 325 00:19:54,276 --> 00:19:57,112 where you'd take a moment away, hop into the booth, 326 00:19:57,196 --> 00:19:59,573 create content to share on social media. 327 00:19:59,656 --> 00:20:03,911 JUUL was trying to associate itself with young, internet-savvy, cool kids 328 00:20:03,994 --> 00:20:05,913 to ride that boom in influencer marketing. 329 00:20:10,626 --> 00:20:15,797 JUUL did a good job of tapping into people known as "It girls" and "It boys." 330 00:20:15,881 --> 00:20:19,551 {\an8}People like Lucas Abbat and Tavi Gevinson. 331 00:20:19,635 --> 00:20:21,887 {\an8}They were associating themselves with tastemakers. 332 00:20:21,970 --> 00:20:25,224 But at the same time, people at JUUL were sending out free products 333 00:20:25,307 --> 00:20:27,768 to a long list of influencers and celebrities 334 00:20:27,851 --> 00:20:30,520 like Leonardo DiCaprio and Bella Hadid. 335 00:20:31,605 --> 00:20:33,565 Every start-up was using this tactic. 336 00:20:33,649 --> 00:20:37,236 Selling a way of life is the most effective way of selling a product. 337 00:20:37,319 --> 00:20:40,572 If you run a company and want it to grow, that was the way to grow it. 338 00:20:41,073 --> 00:20:42,233 JUUL throws a party, 339 00:20:42,282 --> 00:20:44,701 invites people with a lot of followers on Instagram, 340 00:20:44,785 --> 00:20:48,288 gives them JUULs, and gives them cool things to take pictures in front of. 341 00:20:48,372 --> 00:20:51,583 It just looks like all the cool people you know are JUULing. 342 00:20:59,216 --> 00:21:02,344 The launch campaign was targeted towards millennials, 343 00:21:02,427 --> 00:21:05,305 which struck some people as a strange decision 344 00:21:05,389 --> 00:21:08,684 because smoking wasn't terribly popular with millennials. 345 00:21:10,769 --> 00:21:15,774 {\an8}I never saw a single proposal by Marketing ever be pushed back on. 346 00:21:17,025 --> 00:21:19,820 There was never any, "No, let's not do this." 347 00:21:21,029 --> 00:21:22,864 {\an8}I'm not a born marketer either. 348 00:21:22,948 --> 00:21:26,243 {\an8}So if they said, "This is what's necessary to get this going, 349 00:21:26,326 --> 00:21:29,121 and here's what we'll promise in terms of results," 350 00:21:29,871 --> 00:21:31,498 um, the board went with it. 351 00:21:31,581 --> 00:21:34,293 {\an8}The investors are investing in the launch campaign, 352 00:21:34,376 --> 00:21:37,379 and they're expecting to see signals 353 00:21:37,462 --> 00:21:41,383 that this business has huge potential growth ahead of it. 354 00:21:42,259 --> 00:21:46,096 Among the board, one person in particular was concerned, 355 00:21:46,179 --> 00:21:48,473 an investor named Alexander Asseily. 356 00:21:48,557 --> 00:21:52,394 Alex Asseily was the only voice of dissent 357 00:21:52,477 --> 00:21:55,063 as the campaign went to market. 358 00:21:55,147 --> 00:21:57,482 He felt that it was way off strategy, 359 00:21:57,566 --> 00:22:02,029 and he understood that, if this strategy was to succeed, 360 00:22:02,112 --> 00:22:05,240 the organization might never be able to walk back from it. 361 00:22:05,866 --> 00:22:08,535 We did the Vaporized campaign. 362 00:22:08,618 --> 00:22:10,412 You know, models dancing, 363 00:22:10,495 --> 00:22:11,872 {\an8}holding a JUUL in their hand. 364 00:22:11,955 --> 00:22:15,083 It seemed like this was going to be the coolest thing in the world. 365 00:22:15,167 --> 00:22:17,169 Probably a bad idea. 366 00:22:18,587 --> 00:22:22,632 I feel it was effective in terms of what we were trying to achieve. 367 00:22:22,716 --> 00:22:28,180 But the initial response to the campaign... we immediately got negative feedback. 368 00:22:28,263 --> 00:22:33,310 E-cigarette makers are allowed to advertise to anyone on TV, 369 00:22:33,393 --> 00:22:35,937 which has led to ads like this one for JUUL Vapor. 370 00:22:39,649 --> 00:22:42,319 Mm-mm. 371 00:22:42,402 --> 00:22:46,782 Yeah! Something about inhaling poison steam makes me want to dance 372 00:22:46,865 --> 00:22:48,950 in a way that doesn't require much lung strength. 373 00:22:49,951 --> 00:22:52,454 Ultimately, the problem with JUUL's early marketing 374 00:22:52,537 --> 00:22:56,124 {\an8}was that while they had sat down and read thousands of pages 375 00:22:56,208 --> 00:22:59,419 {\an8}of tobacco industry documents about nicotine salts, 376 00:22:59,503 --> 00:23:03,840 they apparently hadn't read the thousands of pages about tobacco industry marketing. 377 00:23:03,924 --> 00:23:08,970 {\an8}If you were starting a start-up putting out a nicotine product, 378 00:23:09,054 --> 00:23:10,597 {\an8}why reinvent the wheel? 379 00:23:11,848 --> 00:23:13,934 JUUL, in its advertising, 380 00:23:14,017 --> 00:23:18,230 faithfully followed the playbook of Big Tobacco companies 381 00:23:18,313 --> 00:23:20,148 and their cigarette brands. 382 00:23:20,232 --> 00:23:21,942 The Vaporized campaign. 383 00:23:22,025 --> 00:23:24,528 It has direct roots 384 00:23:24,611 --> 00:23:27,572 from the way the tobacco industry marketed to youth. 385 00:23:28,490 --> 00:23:32,160 Take a bunch of 20-somethings, and you have them dance around. 386 00:23:33,120 --> 00:23:36,540 Many of the thematics look like Newport ads. 387 00:23:37,124 --> 00:23:41,628 {\an8}Social groups of teenagers, ones and twos, doing fun things, 388 00:23:41,711 --> 00:23:43,547 playing, dancing around. 389 00:23:43,630 --> 00:23:47,342 {\an8}The themes that are put forward with Vaporized, 390 00:23:47,426 --> 00:23:49,845 {\an8}of individuality, adventure, and glamour, 391 00:23:49,928 --> 00:23:54,766 {\an8}those were older themes that had been developed by Big Tobacco. 392 00:23:54,850 --> 00:23:56,309 Look at the hair. 393 00:23:57,102 --> 00:23:58,687 Look at the faces. 394 00:23:59,604 --> 00:24:00,856 Look at the poses. 395 00:24:01,523 --> 00:24:03,233 Employing glamour, 396 00:24:04,443 --> 00:24:06,361 sophistication and youth, 397 00:24:07,237 --> 00:24:08,905 and cool. 398 00:24:08,989 --> 00:24:12,451 They gave away tens and tens of thousands of free JUULs. 399 00:24:13,118 --> 00:24:15,912 That's an old trick of drug dealers everywhere, right? 400 00:24:15,996 --> 00:24:17,873 The first one is always free. 401 00:24:17,956 --> 00:24:21,501 They took the very worst elements of tobacco marketing. 402 00:24:22,002 --> 00:24:25,297 Cigarette makers could no longer advertise on television. JUUL could. 403 00:24:25,380 --> 00:24:29,217 Cigarette makers could no longer have a billboard on Times Square. 404 00:24:29,301 --> 00:24:30,760 JUUL could. 405 00:24:31,928 --> 00:24:34,389 {\an8}Shortly after the Vaporized campaign came out, 406 00:24:34,473 --> 00:24:37,476 {\an8}AdAge ran a story about the campaign. 407 00:24:37,559 --> 00:24:40,562 Within that article, somebody was quoted as saying 408 00:24:40,645 --> 00:24:44,316 that the advertisements looked very similar to old Big Tobacco ads. 409 00:24:46,443 --> 00:24:48,653 {\an8}This was a bombshell within the company. 410 00:24:49,821 --> 00:24:51,823 Mumby's team leapt into hyperdrive 411 00:24:51,907 --> 00:24:54,784 and started redoing aspects of the Vaporized campaign, 412 00:24:54,868 --> 00:24:56,828 even though it had just come out. 413 00:24:58,997 --> 00:25:03,460 {\an8}We all knew from day one, children smoking JUULs was a disaster. 414 00:25:03,543 --> 00:25:05,754 {\an8}There was no doubt about that. 415 00:25:05,837 --> 00:25:09,049 James actually came out of his office one day and said, 416 00:25:09,132 --> 00:25:12,844 "Guys, this is a smoking product. We gotta start thinking that way." 417 00:25:13,720 --> 00:25:16,389 And I remember that was quite a shift for him, 418 00:25:16,473 --> 00:25:20,268 {\an8}because there was always this Silicon Valley mentality of, 419 00:25:20,852 --> 00:25:23,438 "Get as big as you can as fast as you can." 420 00:25:23,522 --> 00:25:25,190 "Figure out the rest later." 421 00:25:26,191 --> 00:25:29,986 They got caught, in a sense, and you end up with an apology tour, 422 00:25:30,070 --> 00:25:31,404 or a retreat. 423 00:25:31,488 --> 00:25:32,822 When we launched JUUL, 424 00:25:32,906 --> 00:25:35,784 we had a campaign that was uh, 425 00:25:35,867 --> 00:25:39,746 arguably too kind of lifestyle-oriented, too flashy. 426 00:25:39,829 --> 00:25:41,331 It lasted less than six months. 427 00:25:41,414 --> 00:25:44,334 Adam Bowen said, "It was too lifestyle-oriented." 428 00:25:44,417 --> 00:25:48,505 That's a "tepid" way of saying it was, in fact, very youth-oriented. 429 00:25:49,714 --> 00:25:51,883 There's a saying in Silicon Valley, 430 00:25:51,967 --> 00:25:53,677 "Move fast and break things." 431 00:25:53,760 --> 00:25:55,345 This Vaporized campaign 432 00:25:55,428 --> 00:26:00,475 was conceived, pre-produced, and executed in less than a month. 433 00:26:00,559 --> 00:26:02,894 That's really, really quick. 434 00:26:03,478 --> 00:26:07,524 It was wildly irresponsible for the creative leadership 435 00:26:07,607 --> 00:26:11,611 to have no knowledge of what was responsible marketing 436 00:26:11,695 --> 00:26:13,113 of a tobacco product. 437 00:26:13,196 --> 00:26:16,866 I want to be clear, Steven Baillie was hired help 438 00:26:16,950 --> 00:26:20,036 to execute a playbook that he was known for. 439 00:26:20,120 --> 00:26:23,915 Young, smiley, happy, sexually provocative people 440 00:26:23,999 --> 00:26:25,208 having a great time. 441 00:26:25,834 --> 00:26:29,254 It's really not Steven's responsibility 442 00:26:29,337 --> 00:26:33,049 to set the strategic direction for the brand. 443 00:26:33,133 --> 00:26:38,221 Baillie and Mumby took the marching orders from the senior leadership of JUUL, 444 00:26:38,305 --> 00:26:42,225 and they created the goal of getting the cool kids. 445 00:26:44,894 --> 00:26:47,981 So, uh, one of the things I wanted to talk about 446 00:26:48,064 --> 00:26:50,275 was that Stackler professor from Stanford. 447 00:26:50,358 --> 00:26:52,527 - It's Jackler. - Jackler, Stackler. 448 00:26:52,611 --> 00:26:55,071 It was kind of shocking that he was a professor. 449 00:26:55,155 --> 00:26:57,907 I'm not here to take shots at him, 450 00:26:57,991 --> 00:27:01,620 but this idea that we went through the hallowed hall 451 00:27:01,703 --> 00:27:03,913 of bad tobacco advertising, 452 00:27:03,997 --> 00:27:05,957 and extracted elements, 453 00:27:06,041 --> 00:27:10,920 as if we even had the time for that, you know, it was comical in a sense, 454 00:27:11,004 --> 00:27:14,924 because of the time it actually took to do this whole thing. 455 00:27:15,759 --> 00:27:18,928 It wouldn't have been physically possible to do what he was suggesting. 456 00:27:19,012 --> 00:27:24,184 If I could take credit for creating this thing that was a cultural phenomenon, 457 00:27:24,267 --> 00:27:26,102 maybe, I mean... 458 00:27:26,186 --> 00:27:30,774 I'd be the most wanted creative professional on the planet, 459 00:27:30,857 --> 00:27:33,693 but it didn't work out like that. It was, you know... 460 00:27:33,777 --> 00:27:35,737 My name was getting thrown around the press, 461 00:27:35,820 --> 00:27:38,573 and uh, it got really scary, you know? 462 00:27:40,575 --> 00:27:44,120 I'm coming out of it. I just feel weird being like, "Wah, wah, wah." 463 00:27:44,204 --> 00:27:47,874 I'm a grown man. If I have to drive Uber, fuck it. 464 00:27:47,957 --> 00:27:49,292 What am I going to do? 465 00:27:55,507 --> 00:27:58,176 I remember what the first day was like. 466 00:27:58,259 --> 00:28:01,721 {\an8}They had just sent the samples to my house. I was super excited. 467 00:28:01,805 --> 00:28:04,182 {\an8}I had a list of stores I was going to visit. 468 00:28:04,265 --> 00:28:07,310 I was like, "I'm going to hit the ground running. It'll be awesome." 469 00:28:07,394 --> 00:28:10,313 I get to the first vape shop. They're like, "We don't want it." 470 00:28:10,897 --> 00:28:13,942 I'm like, "Let me see if I can change it up and go to a smoke shop." 471 00:28:14,025 --> 00:28:15,944 "No, we don't want it." 472 00:28:16,027 --> 00:28:17,529 And it was like that. 473 00:28:18,029 --> 00:28:20,573 No one wanted it. No one wanted it at all. 474 00:28:21,157 --> 00:28:23,702 JUUL was starting to spread on social media. 475 00:28:23,785 --> 00:28:26,329 People were posting about it after the sampling tour, 476 00:28:26,413 --> 00:28:29,040 but in real life, things were not looking as good. 477 00:28:29,124 --> 00:28:33,044 Salespeople were struggling to convince retailers to stock JUUL products. 478 00:28:33,628 --> 00:28:35,748 I don't think they got what we were selling. 479 00:28:35,797 --> 00:28:38,800 They just saw pretty people holding what looked like a USB stick. 480 00:28:38,883 --> 00:28:42,095 Are we selling the models, or are we selling the JUUL? 481 00:28:42,762 --> 00:28:49,519 {\an8}This guy, he calls us and he's like, "Hey, is this uh, JUUL?" I'm like, "Yeah." 482 00:28:49,602 --> 00:28:52,313 He's like, "Are you the person who sent me those JUUL pods?" 483 00:28:52,397 --> 00:28:53,857 "Yep, what'd you think?" 484 00:28:53,940 --> 00:28:56,568 "First off, I got a bunch of juice in my mouth." 485 00:28:56,651 --> 00:28:58,153 "I'm not thrilled about that." 486 00:28:59,070 --> 00:29:00,905 Even after JUUL launched, 487 00:29:00,989 --> 00:29:03,992 people were still reporting this juice-in-mouth problem. 488 00:29:04,659 --> 00:29:07,871 One employee tested this huge batch of JUUL pods, 489 00:29:07,954 --> 00:29:09,789 and almost one in five leaked. 490 00:29:09,873 --> 00:29:13,126 {\an8}I think the expectations on how successful JUUL was gonna be 491 00:29:13,209 --> 00:29:14,878 {\an8}were rapidly shrinking. 492 00:29:15,462 --> 00:29:19,048 {\an8}In fact, at one point, we stopped production for two weeks 493 00:29:19,132 --> 00:29:20,884 {\an8}because we had ordered too much. 494 00:29:21,468 --> 00:29:23,970 {\an8}They expected JUUL to be big, 495 00:29:24,053 --> 00:29:25,972 {\an8}but then when the JUUL came out, 496 00:29:26,055 --> 00:29:29,601 James was in a panic because he thought the product was going to fail terribly. 497 00:29:35,523 --> 00:29:38,693 To get the JUUL device to a point where it could be sold widely 498 00:29:38,777 --> 00:29:40,653 was a huge undertaking. 499 00:29:40,737 --> 00:29:42,655 {\an8}We were doing things manually, 500 00:29:42,739 --> 00:29:47,994 {\an8}and they were extremely expensive to hand-assemble and hand-fill. 501 00:29:48,077 --> 00:29:50,622 We were selling potentially at a loss. 502 00:29:51,748 --> 00:29:53,750 I was trying to get some automated equipment, 503 00:29:53,833 --> 00:29:57,420 and me and James got into an argument that spilled into the parking lot 504 00:29:57,504 --> 00:29:58,713 over $500. 505 00:30:03,927 --> 00:30:08,556 James wanted to call the shots, even if it wasn't his area of expertise. 506 00:30:10,099 --> 00:30:11,976 He wanted to be the one in charge. 507 00:30:13,812 --> 00:30:16,648 Big changes are coming to the e-cigarette market. 508 00:30:16,731 --> 00:30:19,400 The FDA released new rules today. The agency... 509 00:30:19,484 --> 00:30:21,194 On top of all of these problems, 510 00:30:21,277 --> 00:30:24,739 the FDA was finalizing its rules for regulating e-cigarettes. 511 00:30:25,698 --> 00:30:28,076 The Food and Drug Administration regulates 512 00:30:28,159 --> 00:30:32,038 most of the foods, all the drugs, and, since 2009, tobacco products. 513 00:30:32,747 --> 00:30:34,541 {\an8}When I became center director, 514 00:30:34,624 --> 00:30:37,794 {\an8}e-cigarettes were not under FDA regulation. 515 00:30:37,877 --> 00:30:42,674 It took the better part of seven years to finally begin to regulate e-cigarettes. 516 00:30:42,757 --> 00:30:44,884 {\an8}The industry has never been regulated 517 00:30:44,968 --> 00:30:47,053 {\an8}or taxed by the federal government, 518 00:30:47,136 --> 00:30:49,556 {\an8}but today, a new set of rules came out. 519 00:30:49,639 --> 00:30:52,851 {\an8}That includes banning sales to anyone under 18, 520 00:30:52,934 --> 00:30:55,061 {\an8}requiring package warning labels, 521 00:30:55,144 --> 00:30:57,605 {\an8}and making all products subject to government approval. 522 00:30:57,689 --> 00:31:00,358 Instead of it being the Wild West 523 00:31:00,441 --> 00:31:04,153 and the companies being able to do anything that they wanted, 524 00:31:04,237 --> 00:31:06,364 if they wanted to bring a new product to market, 525 00:31:06,447 --> 00:31:08,741 if they wanted to make a claim for their products, 526 00:31:08,825 --> 00:31:10,827 {\an8}they had to come to FDA first. 527 00:31:11,494 --> 00:31:14,098 {\an8}E-cigarette makers could keep selling any vaping product 528 00:31:14,122 --> 00:31:15,290 already on the market, 529 00:31:15,373 --> 00:31:17,584 but they couldn't introduce new ones. 530 00:31:17,667 --> 00:31:21,629 So for JUUL to be told basically to freeze in place 531 00:31:21,713 --> 00:31:24,299 and say, "We'll grandfather in this thing, 532 00:31:24,382 --> 00:31:27,427 {\an8}because you did it before we were paying attention, 533 00:31:27,510 --> 00:31:30,513 {\an8}but now we're paying attention, and if you try to do anything else, 534 00:31:30,597 --> 00:31:33,474 you're going to get the full scrutiny and wrath of the FDA," 535 00:31:33,558 --> 00:31:36,895 I think it just left them feeling sort of static. 536 00:31:39,606 --> 00:31:42,442 It was right in the middle of the morning. 537 00:31:44,277 --> 00:31:45,945 There was tension in the air 538 00:31:46,029 --> 00:31:48,281 because we knew that there had been some rumblings 539 00:31:48,364 --> 00:31:52,035 {\an8}about some of the numbers were really bad in terms of JUUL. 540 00:31:52,535 --> 00:31:54,662 {\an8}Anyway, we're hanging around, 541 00:31:54,746 --> 00:31:57,957 but, normally, the board was insulated from the company. 542 00:31:58,041 --> 00:32:01,711 This is the first time this guy Pritzker had ever spoken directly. 543 00:32:01,794 --> 00:32:05,673 Says, "We're having an immediate all-hands meeting." 544 00:32:05,757 --> 00:32:10,011 He was very blunt, not happy at all with the way things were going. 545 00:32:10,094 --> 00:32:12,847 "I see a lot of stupid decisions being made." 546 00:32:12,931 --> 00:32:16,643 And he marched James up to the front, the guy from the board got up there says, 547 00:32:16,726 --> 00:32:18,811 {\an8}"Effective immediately, James is out." 548 00:32:18,895 --> 00:32:21,648 {\an8}Right like that, in front of the whole company. 549 00:32:23,149 --> 00:32:25,026 He was sitting on a table. 550 00:32:25,818 --> 00:32:28,905 He was looking down. He wasn't looking up, uh... 551 00:32:29,781 --> 00:32:31,783 His feet were swinging in the air. 552 00:32:32,784 --> 00:32:34,494 And, uh, bam. 553 00:32:36,204 --> 00:32:39,874 I was so angry at that board because he had built that company. 554 00:32:39,958 --> 00:32:42,001 He didn't deserve to be treated like that. 555 00:32:44,963 --> 00:32:48,967 {\an8}And all of a sudden, the board stepped in and took a very active role. 556 00:32:50,677 --> 00:32:53,388 James being demoted didn't really surprise me, 557 00:32:53,471 --> 00:32:56,391 but it did surprise me that the board would come in and say, 558 00:32:56,474 --> 00:32:57,976 "We don't have a CEO." 559 00:32:58,059 --> 00:33:01,604 "We're just going to run this company for the foreseeable future." 560 00:33:01,688 --> 00:33:04,065 Board members suddenly de facto running the company 561 00:33:04,148 --> 00:33:05,608 is basically unheard of. 562 00:33:06,442 --> 00:33:10,989 {\an8}James and Adam had lost control of their company by then, 563 00:33:11,072 --> 00:33:13,408 {\an8}because they gave away too much of it. 564 00:33:13,491 --> 00:33:16,911 That's when JUUL started to become a company driven by profit 565 00:33:16,995 --> 00:33:21,457 {\an8}and this desire to become a corporation rather than a scrappy little start-up. 566 00:33:22,834 --> 00:33:26,504 Because of the waning revenue 567 00:33:26,587 --> 00:33:29,549 {\an8}and the lack of performance from JUUL, 568 00:33:29,632 --> 00:33:32,260 {\an8}there was discussion about killing JUUL altogether. 569 00:33:33,261 --> 00:33:36,431 It was a lot of fear that, "What have we done?" 570 00:33:36,514 --> 00:33:40,393 "Have we just wasted all this energy and time and resources in creating this?" 571 00:33:41,310 --> 00:33:44,731 But sometimes you get a lucky hit. 572 00:33:53,448 --> 00:33:54,448 So... 573 00:33:56,075 --> 00:33:57,160 {\an8}after the party, 574 00:33:57,243 --> 00:34:00,288 {\an8}I think that my relationship with cigarettes changed. 575 00:34:05,835 --> 00:34:07,962 I carried the JUUL with me more often. 576 00:34:08,755 --> 00:34:12,091 When my friends saw me vaping that summer, they were like, "What is that?" 577 00:34:14,886 --> 00:34:15,720 Mimi, go! 578 00:34:15,803 --> 00:34:18,097 I started college in August 2016. 579 00:34:18,848 --> 00:34:21,601 Because I carried it around with me so often, 580 00:34:21,684 --> 00:34:25,229 I did have a big influence on JUUL in our college campus. 581 00:34:28,399 --> 00:34:30,860 {\an8}I remember my roommates would make fun of me for it, 582 00:34:30,943 --> 00:34:32,695 but they eventually got one. 583 00:34:34,155 --> 00:34:37,033 You felt like you were almost a part of a secret club 584 00:34:37,116 --> 00:34:38,409 that no one knew about yet. 585 00:34:39,285 --> 00:34:43,331 But I'd say around my sophomore year of college, everyone had one, 586 00:34:43,414 --> 00:34:47,502 or at least everyone knew about it, and they'd be like, "Can I hit your JUUL?" 587 00:34:51,589 --> 00:34:55,468 June or July 2016, we just blew up. 588 00:34:56,344 --> 00:34:59,138 JUUL orders just took off out of nowhere. 589 00:34:59,222 --> 00:35:01,849 We are just flying through product. 590 00:35:01,933 --> 00:35:04,852 {\an8}When sales started rolling in, all of a sudden I'm realizing, 591 00:35:04,936 --> 00:35:07,396 {\an8}"Wait a minute, this is really going somewhere." 592 00:35:09,315 --> 00:35:12,735 The only thing I can guess is, somewhere in New York, 593 00:35:12,819 --> 00:35:14,779 somebody asked the question, "What is that?" 594 00:35:14,862 --> 00:35:16,614 And then we just got hot. 595 00:35:18,699 --> 00:35:20,576 I think it was word of mouth. 596 00:35:21,160 --> 00:35:23,746 I ended up telling a lot of my friends about JUUL. 597 00:35:23,830 --> 00:35:28,084 {\an8}Thirty-something people who were smokers all switched over to the JUUL. 598 00:35:28,167 --> 00:35:31,212 A friend saying, "I tried this and it really is great," 599 00:35:31,295 --> 00:35:33,714 that's the best marketing and advertising you can get. 600 00:35:34,549 --> 00:35:35,800 You can't beat that. 601 00:35:35,883 --> 00:35:38,344 But that kind of word of mouth takes time. 602 00:35:38,427 --> 00:35:41,013 A marketing campaign that you do in 2015, 603 00:35:41,097 --> 00:35:44,183 you might not see those sales numbers until 2016. 604 00:35:44,267 --> 00:35:47,854 {\an8}But a year to mass adoption is actually extremely quick. 605 00:35:47,937 --> 00:35:51,357 JUUL took a product that was previously considered cringy, 606 00:35:51,440 --> 00:35:55,403 and made it into this cool, aspirational, awesome thing 607 00:35:55,486 --> 00:35:58,364 that everyone had to have. This party accessory almost. 608 00:36:01,242 --> 00:36:02,618 I would say the draw from this 609 00:36:02,702 --> 00:36:05,997 is as close to a cigarette as you'll get from something electronic. 610 00:36:06,664 --> 00:36:09,917 Being influenced is easy, especially if you tell someone "this is cool," 611 00:36:10,001 --> 00:36:12,086 and they see it and say, "You're right, it is." 612 00:36:12,170 --> 00:36:15,173 Then they start using it and it spreads like wildfire from there. 613 00:36:19,802 --> 00:36:23,598 For me, it was when I walked around the streets of Silicon Valley, 614 00:36:23,681 --> 00:36:25,141 and San Francisco, 615 00:36:25,224 --> 00:36:29,520 and it felt like two out of every three people you passed were JUULing. 616 00:36:30,438 --> 00:36:33,941 And then, pretty quickly, it started to be truly everywhere. 617 00:36:34,483 --> 00:36:37,987 Everyone saw Dave Chappelle's stand-up, and he was using it. 618 00:36:38,070 --> 00:36:40,406 They didn't reach out to him. They didn't pay him. 619 00:36:40,489 --> 00:36:42,283 He was just using it all on his own. 620 00:36:42,366 --> 00:36:44,035 You want to hit my vape pen? 621 00:36:44,660 --> 00:36:45,870 Sorry, nigga. 622 00:36:45,953 --> 00:36:48,331 I'm trying not to get herpes. My bad. 623 00:36:49,290 --> 00:36:50,930 There were a bunch of celebrities 624 00:36:50,958 --> 00:36:53,502 posting about it on Instagram in a way that felt genuine, 625 00:36:53,586 --> 00:36:56,547 which is the dream for a company like that. 626 00:36:56,631 --> 00:37:01,469 That if you can just get into the right handful of places, you're good. 627 00:37:03,221 --> 00:37:06,140 We were thrilled when we saw that people 628 00:37:06,224 --> 00:37:08,517 that were influencers were loving JUUL. 629 00:37:10,436 --> 00:37:15,066 It's amazing how little of that it takes from the right set of people 630 00:37:15,149 --> 00:37:17,818 to make a campaign like that take off. 631 00:37:18,444 --> 00:37:20,988 Because as soon as a handful of celebrities do it, 632 00:37:21,072 --> 00:37:24,700 that means you've now exposed your product and your idea to everybody. 633 00:37:28,996 --> 00:37:32,959 The Vaporized campaign, I think it's brilliant marketing. 634 00:37:33,042 --> 00:37:34,585 It's textbook marketing. 635 00:37:34,669 --> 00:37:39,340 You know, you seed the conversation, and you seed the influencers, 636 00:37:39,423 --> 00:37:43,469 {\an8}and you sit back, and you watch the masses take notice. 637 00:37:45,221 --> 00:37:48,516 But JUUL's first impression will forever be known 638 00:37:48,599 --> 00:37:53,562 as a brand that tried to recruit the next generation of nicotine addicts. 639 00:37:54,522 --> 00:37:59,819 JUUL ran ads that looked exactly like what you would do 640 00:37:59,902 --> 00:38:02,989 if you're Apple and you're making a vaporizer. 641 00:38:03,990 --> 00:38:09,078 They had people who looked cool, doing cool stuff, with JUULs. 642 00:38:09,161 --> 00:38:11,622 It wasn't a deep, serious dive 643 00:38:11,706 --> 00:38:14,917 into how they improved the experience of ingesting nicotine. 644 00:38:15,001 --> 00:38:16,419 It was lifestyle ads. 645 00:38:16,502 --> 00:38:20,423 What your life could look like if only you had this in your life. 646 00:38:20,506 --> 00:38:22,383 {\an8}They did not go into this 647 00:38:22,466 --> 00:38:25,886 {\an8}with regard for the side effects of that sort of marketing. 648 00:38:25,970 --> 00:38:29,390 They saw this as just another tech product. 649 00:38:29,473 --> 00:38:32,101 And it's not another tech product. It's a nicotine product. 650 00:38:32,184 --> 00:38:36,564 Had JUUL decided to hire somebody from the tobacco industry, 651 00:38:36,647 --> 00:38:40,526 that person likely would have immediately sent up red flags and said, "No." 652 00:38:41,110 --> 00:38:43,738 With 20/20 hindsight, what I would say to them 653 00:38:43,821 --> 00:38:46,240 {\an8}is take the marketing plan 654 00:38:47,033 --> 00:38:50,786 {\an8}that you learned how to do when you were in business school, 655 00:38:50,870 --> 00:38:52,163 and throw it away. 656 00:38:52,246 --> 00:38:54,081 Because you don't make widgets, 657 00:38:54,165 --> 00:38:57,001 you make a product that has nicotine in it. 658 00:38:58,002 --> 00:39:01,172 James and Adam didn't totally understand that. 659 00:39:04,550 --> 00:39:07,845 I've been conflicted about my role in all of this, over time. 660 00:39:07,928 --> 00:39:09,764 I wrote an article a lot of people read 661 00:39:09,847 --> 00:39:11,807 {\an8}saying this was the iPhone of e-cigarettes, 662 00:39:11,891 --> 00:39:13,934 {\an8}which is not a small thing to say. 663 00:39:14,018 --> 00:39:18,856 I think I was right, in retrospect, but did I help that be right? Probably. 664 00:39:18,939 --> 00:39:20,399 And I think, as a tech reporter, 665 00:39:20,483 --> 00:39:23,069 it would have been easy enough for me to leave it alone 666 00:39:23,152 --> 00:39:25,488 and say, "This is not fundamentally a tech product." 667 00:39:25,571 --> 00:39:29,408 "This is somebody trying to make tech out of something else." 668 00:39:29,492 --> 00:39:32,661 And a thing I didn't realize at the time, that I wish I had, 669 00:39:32,745 --> 00:39:37,124 was their goal was not to make people quit smoking. 670 00:39:37,208 --> 00:39:39,377 Their goal was to make people start JUULing. 671 00:39:39,460 --> 00:39:43,089 And I never asked the question, and I wish I had, 672 00:39:43,172 --> 00:39:45,800 "What if this works? What if everyone does start JUULing?" 673 00:39:45,883 --> 00:39:46,717 "Then what?" 674 00:39:49,011 --> 00:39:53,641 I don't think anyone could have anticipated how many children 675 00:39:53,724 --> 00:39:55,351 would want this product. 676 00:39:55,434 --> 00:39:56,894 ♪ Where's my JUUL? ♪ 677 00:39:56,977 --> 00:39:58,104 ♪ Where's my JUUL? ♪ 678 00:39:58,187 --> 00:40:00,314 First impressions are everything on internet, 679 00:40:00,398 --> 00:40:03,067 so when you put the JUUL campaign into the world, 680 00:40:03,150 --> 00:40:05,986 it's like releasing a genie. There's no going back. 681 00:40:06,695 --> 00:40:08,239 ♪ Where's my JUUL? ♪ 682 00:40:08,322 --> 00:40:09,448 ♪ Where's my JUUL? ♪ 683 00:40:09,990 --> 00:40:11,450 {\an8}♪ So not cool! ♪ 684 00:40:12,159 --> 00:40:13,160 {\an8}♪ Where's my JUUL? ♪ 61667

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