E-Cigs: What You Need to Know
The Electronic Cigarette Industry
• Smoking contributes to 80% of lung-cancer deaths in women; 90% in men, according to the American Lung Association
• E-cigs have 450 times lower levels of toxicants in their vapors than can be found in cigarette smoke
• At just $1.2 billion, the e-cig market is still small• Only 1% of the $89 billion tobacco industry
The Electronic Cigarette Industry
• E-cigarettes, which do not contain tobacco, resemble traditional cigarettes but use a battery to heat a liquid nicotine solution, which creates a vapor – not smoke -- that users inhale.
• There is no second-hand smoke with e-cigs; however, the FDA has warned the effects are unknown.
• Gives users their nicotine fix without the toxins and carcinogens generated by burning tobacco.
The Electronic Cigarette Industry
• Between manufacturer price hikes on cigarettes, increased taxes by local, state, and federal governments, and bans on public smoking, cigarette sales will continue to fall
• There is no federal excise tax on e-cigarettes• Sales are estimated to hit between $3 billion and $10
billion over next 5 years • Could surpass regular cigarette sales within the next
decade
The Top 5 E-Cig Brands
E-Cig Brand Market Share by Units
Market Share by Dollar
blu eCig 36.1% 44.8%
Njoy 17.7% 20.6%
Logic 20.8% 18.5%
21st Century 7.3% 4.2%
Nicotek 4.6% 3.0%
Data from Nielsen
E-Cig Industry Wildcards
• Lorillard was first Big Tobacco company to embrace e-cigs with purchase of blue eCig for $135 million
• Just acquired SkyCig for $49 million• Reynolds American recently introduced its Vuse brand
in Colorado and captured 80% of the market• Altria to introduce NuMark MarkTen brand• Altria will partner with Philip Morris International to
market e-cigs and smokeless tobacco products globally
E-Cig Industry Risks
• Benefits are still largely unknown by regulators and politicians
• Because they look like cigarettes there is fear they will lead to complacency over smoking
• Fear that flavors and aromas will attract kids• "Vaping" bans are being enacted in a number of cities• FDA is angling to regulate this largely unregulated
market, similar to tobacco
Nicotek
• Disposable or rechargeable• Standard kit comes with
USB charger, 2 cartridges, 1 rechargeable battery, carrying case
• Comes in 3 different flavors: 1.2% nicotine by volume, 1.8%, and 1.8% menthol
Metro E-Cig Brand
21st Century
• Disposable or rechargeable• Disposable device is
comparable to 1 pack of cigarettes
• Rechargeable cartridge is comparable to approximately 2 packs of cigarettes
• Comes in different flavors, from 1.6% nicotine per ml to 2.0% per ml, and menthol
21st Century Smoke E-Cig Brand
Logic
• Rechargeable• Cartridge is comparable to
400 puffs or approximately 2 packs of cigarettes
• Comes in different flavors, from 1.4% nicotine per volume to 2.4% per ml, and menthol
• Also available in 0% nicotine by volume and a 0.8% hookah strength
Logic E-Cig Brand
NJOY
• Disposable or rechargeable• No lighting or charging
required to smoke• Comes in different flavors,
from 0.6% nicotine per volume to 1.8% per ml, and menthol
NJOY E-Cig Brand
Lorillard
• Rechargeable or disposable
• Cartridge is comparable to 250; premium cartridges equate to 350 puffs
• Comes in different flavors ranging from 0 mg of nicotine to 13-16 mg
blu eCig Brand
