E Cigarette Editor: Nicholas King
The Electronic Cigarette sales have finally hit a wall.
That is possibly bad news for an industry fighting to counter falling sales of conventional smokes. In addition, it presents a challenge to Reynolds American Inc., which consented to sell the popular Blu electronic cigarette brand as part of its planned acquisition of Lorillard. The recently combined business would be left to rely on Vuse, an electronic cigarette line created by Reynolds that is just now being widely distributed.
After betting on disposable e-cigarettes that are glossy, the sector is also grappling with growing competition from generic vaporizers which can be refilled with nicotine liquid of many flavors. Inquired about the sales slow down after the deal was announced yesterday, Lorillard CEO Murray Kessler said “it is standard for a completely new classification to have some kind of ups and downs, but we still try to compete with the best electronic cigarette brands.”
Investments in technology and advertising will reignite sales, he said.
But some attempts to entice standard smokers to e cigarette are faltering only because most return to the real thing.
“If it is not good enough with regard to replacing a smoke, smokers will remain with the smoke.”
The first indications of a slip arrived this year.
“The disposables are on their way outside,” said Matt Lamb, whose Simply Smoke shop in Atlanta sells an array of electronic cigarette, tanks and liquids, for example, melon-flavored “4 Play” by Fantasia.
E-cigarettes, devised in 2003 by a Chinese pharmacist, use an electric charge from a little battery to evaporate liquid nicotine into a vapor that’s inhaled and exhaled like smoking and mimic the appearance of combustible smokes. Known as “vaping,” there’s no burning tobacco to create smoke or pitch. Early electronic cigarettes not known for their quality and were mainly made in China. Upstarts like Blu upped the ante with slick, well-designed e cigarette. After seeing their growing popularity, U.S. tobacco companies waded in, also.
Return to TV advertisements
Lorillard paid $135 million for Blu, targeted, and thus named because its electronic cigarette feature a luminous blue point puffers tired of the anti smoking police. One advertisement featured a granny that was scowling.
Reynolds spent developing Vuse. The slick, stainless steel electronic cigarette features a microprocessor the firm says delivers consistent drags of nicotine. Reynolds started marketing Vuse on TV, the first time last year had advertised on the medium in 43 years, it.
Altria Group, the biggest U.S. tobacco marketer, additionally has an electronic cigarette brand, called MarkTen.
FDA advertising approval
On the electronic cigarette front, the business got some great news in April. Despite all the stars seen vaping from analysts at awards ceremonies and the bullish projections, electronic cigarette sales increase had started slowing this year, according to IRI. Lorillard’s own data indicate why. That was up from about.
“While the electronic cigarette is broadly viewed as a close replacement to smokes, for a real cigarette smoking it actually will not mimic the encounter.”
Too little battery life and sufficient ability to create billowy vapor clouds are among the issues noted by smokers, Ms. Azer said. Strong and nicotine delivery that is consistent is another issue. And the feel of cigarette in throat and the mouth is not a replacement that was close enough, she said. About 80% of frequent electronic cigarette users smoke regular cigarettes, Lorillard has said.
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