Page 25 - TOB Magazine March/April 2013

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TOBACCO OUTLET BUSINESS

MARCH/APRIL 2013

T

he tobacco industry continues

its love affair with e-cigarettes

as multiple positive vibes push

forward in the category’s evolution.

In fact, industry estimates report that

e-cigarette sales have doubled every year

since 2008 and are predicted to reach $1

billion in 2013.

A study published recently in the

American Journal of Preventive Medicine

found that 80 percent of e-cigarette

users surveyed in the U.S., U.K., Canada

and Australia believe that the product is

less harmful than traditional cigarettes.

In the analyst circle, Bonnie Herzog,

the managing director of tobacco,

beverage and consumer research at

Wells Fargo Securities LLC, believes

that sales of e-cigarettes could surpass

that of traditional cigarettes in 10 years.

Speaking on the eve of the Tobacco Plus

Expo (TPE) 2013 at the

Convenience

Store News

Tobacco Summit, she said

that cigarette companies in the U.S.have

become more aggressive in pursuing

a total tobacco strategy that includes

electronic cigarettes as consumption

of traditional cigarettes continues to

decline.

Retailers and suppliers at the Summit

agreed that along with OTP, electronic

cigarettes will be the growth drivers of

the overall tobacco category. Lorillard’s

acquisition of e-cigarette company blu

eCigs in April 2012 was deemed a

smart move and is contributing to the

Advancements in the electronic cigarette arena are being felt industry-

wide—through analyst and public health expert backings, at the

manufacturing level and even a newly formed standards association.

Government regulation remains the biggest unknown challenge.

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By Renee M. Covino