48
TOBACCO BUSINESS
MARCH/APRIL 2014
was also feeling encouraged by the
FDA’s seemingly open dialogue with
the industry. “We think the FDA is
coming around,” she says. “Mitch
Zeller (FDA’s director, Center for
Tobacco Products) pointed out
that [e-cigs] are a good option
for people who don’t want
to use tobacco products. I
think they understand the
potential for this product
and that it is one they can
leverage to get people off
tobacco products.”
In February,the question
of whether the federal
government will regulate
e-cigs
like
traditional
cigarettes (sledgehammer) or
adopt a less-restrictive approach
(scalpel) was touched on in a
Bloomberg Businessweek Magazine
cover story. The article reported that
some health advocates support tough
regulations that would require health labels
on e-cigs, subject them to taxes, impose
stringent marketing and sales restrictions,
and ban the use of flavors in them.
It also indicated that Big Tobacco’s
competitive advantage will probably
strengthen once the FDA releases its
proposed regulations for e-cigs, which
analysts expect could include restrictions
on the Internet sales on which many of
the smaller players depend. Conversely, the
“more lightly the area is regulated,the better
chance the upstarts will have of taking on
Big Tobacco and winning,” according to
the
Bloomberg
story.
Andries Verleur, who formed V2Cigs in
2009, said that it is his “sincere hope” that
“regulators and legislators take a responsible
approach towards our category.”
The FDAhas already classified electronic
cigarettes as tobacco products (vs. medical
devices), which was generally viewed as a
good thing by the industry since medical
More than 70 percent of retailers carry or plan to carry “open system” or tank-style vaping products.
40%
35%
30%
25%
20%
15%
10%
5%
0
YES
Currently carry
NO
But plan to carry soon
NO
No plans to carry
36%
36%
28%
