JUUL: Global Sourcing Across Four Continents

Nicotine | Direct Sourcing | Supply Chain Strategy

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Key Focus Areas:

• Direct Sourcing

• Capacity Planning

• Supplier Relationships

• Cost Optimization

Challenge

As JUUL’s growth accelerated, concerns emerged around the global availability of key ingredients. With raw material sourcing managed entirely by co-manufacturing partners, JUUL lacked the visibility and control needed to confidently support its growth trajectory over the next three to five years. Compounding the issue, multiple co-mans were sourcing the same ingredients independently, driving up market prices as they competed against one another.

Approach

Over a six-month period, I traveled globally to meet with the world’s largest nicotine producers, establishing direct sourcing partnerships with farmers and suppliers across India, Brazil, the Philippines, and Ireland. These efforts secured access to an estimated 20% of the global nicotine supply. In the process, to support this strategy, I led a structured RFP process to ultimately negotiate long-term supply agreements to ensure consistent availability at the lowest possible cost.

Results

• Established long-term supply security through direct sourcing partnerships

• Improved supply chain visibility and control, enabling more accurate capacity planning to support growth

• Reduced costs by eliminating intermediaries and consolidating procurement 

• Stabilized price volatility with a centralized sourcing strategy and negotiated long-term contracts