Tobacco Companies Move into E-Cigarette Business

Tobacco manufacturers are moving into the manufacture and sale of electronic cigarettes, according to CNBC. The business, which brought in $400 million to $500 million in sales in 2012, is expected to at least double this year, one expert predicts.

“We’re actually predicting that consumption of e-cigs could surpass consumption of traditional cigarettes in the next decade,” said Bonnie Herzog of Wells Fargo. Last year, tobacco giant Lorillard paid $135 million for the e-cigarette company Blu, while RJ Reynolds created its own e-cigarette brand.

E-cigarettes are designed to deliver nicotine in the form of a vapor, which is inhaled by the user. They usually have a rechargeable, battery-operated heating element, a replaceable cartridge with nicotine or other chemicals and a device called an atomizer that converts the contents of the cartridge into a vapor when heated. E-cigarettes often are made to look like regular cigarettes.

John Cameron, CEO of the e-cigarette company Safecig, says people who want to quit smoking often are not satisfied by using nicotine gum or patches, because they miss the act of smoking.

E-cigarettes do have potential downsides, Herzog notes. She says some critics are concerned there could be potential health risks.

The products can also be expensive. One e-cigarette made by the company Njoy cost almost $9 at a California convenience store. The product claims to be the equivalent of two packs of cigarettes.

Correction: January 14, 2013: The original version of this summary erroneously stated that Bonnie Herzog of Wells Fargo added, “The products are expensive.” The error, which we regret, has been corrected in the above synopsis.

16 Responses

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    Jared

    September 25, 2014 at 3:58 PM

    The nicotine argument is moot.

    Nicotine is found in almost every vegetable matter on the planet.

    There is no human being alive who does not have nicotine in their bloodstream.

    And more and more people are discovering the nicotine in their cigarettes was barely a fraction of the addiction.

    Tobacco slept on this product, assuming it would fail like all the other big pharma quit aids, and truly the e-cig is and was a failure.
    But vaping got a cult following which led to an enormous amount of basement innovation, both in hardware and the extremely cheap to produce ejuice.
    Tobacco bought out a few ecig manufacturers like blu, who’s products are way inferior and overly expensive compared to the hundreds of independent producers who blossomed over the years without notice.
    Only now that it’s getting the spotlight do the tobacco companies and big pharma (essentially the same entity now) realize how badly they slept on an emerging industry that threatens to destroy their monopolies.
    So they use their pets, the always corrupt WHO and various other “health” organizations to launch ridiculous fear mongering campaigns to try and kill an industry which has single handedly saved millions of lives over only about a decade.

    The “but what about the children” argument is an invalid, knee jerk emotional outcry used commonly by liberals who have no other argument, “cause if you’re not for protecting children you’re a monster”.
    It’s horseshit.

    There is essentially NO advertising for these products, unlike zyban(which can kill) or nicorette (which is a fruity child flavored gum, also a child product, hmmmmm) which are all over the tv and print all day long.
    And don’t work.

    The job of protecting children is that of a parent.
    As an adult I have the right to enjoy a candy flavored product if I choose, if you’re too lazy to educate and monitor your children then that is what Cfs is for.
    As far as children getting harmed by ejuice being left out and eaten I first call BS having tastes the stuff, it’s horrible straight, but even still children also die from ingesting: tide pods, bleach, engine coolant, Lego, listerine, hairspray, rat poison and literally a myriad of other extremely common household items.

    Tragic, yes.
    But each have their uses, and in each case parents were expected to use due diligence to avoid tragic accidents.
    Some don’t due to neglect, some due to “shit happens”

    It doesn’t mean we need to ban everything on the planet.

    Legislating away possible bad things that may possibly happen is an asinine concept nanny state politicians and lobbyists use to subdue the sheep.
    It doesn’t work.

    If you vape, be smart and put your stuff away.
    If you have children….

    RAISE YOUR KIDS.

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    ian johnson

    July 6, 2014 at 7:46 AM

    E Cigs contain nicotine and are, therefore, addictive. The tobacco companies are interested in keeping smokers addicted so will tell all sorts of statistical lies as to how much nicotine is actually in the cig. Such companies are corporate sociopaths and do not give a damn about anyone’s health. I know someone who has been on E cigs for 3 years – she’s somewhat deluded in thinking she has chosen the healthy option.

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    Dennis

    June 21, 2013 at 8:41 PM

    This will get people that would normally not smoke to try these. They will get addicted to the nicotine, and eventually go with the real thing. That is in the interest of tobacco companies very much. They might help people quit, but they are going to get twice as many people to start smoking.

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    kevin tito

    April 30, 2013 at 9:57 PM

    Screw the big tobacco companies ! I got news for them …..I wouldnt buy anything with there name on it . There chemical and no care for life is why I am on e-cig. Yes it was my choice , but im done supporting those thieves. I cant stand cigs now and I love it . Smell is back and just feel so much better and I love not giving them or the government my hard earned money . They will just damage the e- cig and probably put chemicals in it . I dont trust them and would never buy anything with there name on it . They are now on my most hated list and they should have thought about this first when they were killing people …..cigarette companies are cowards and they can take the cigarettes and put them up you know what . So cig companies you can have my middle finger …..because thats what I think of you . You will never get my money and I hope u go broke !!!!!!!

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    Tyjohn

    February 9, 2013 at 8:16 PM

    It sounds like conflict of interest if the cigarette manufacturers want to own e- companies. This brings up a trust issue for people who use e-cigs as a means to quit smoking. Can they actually trust them to be helpful when it would cut into their profit?

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