Electronic Cigarettes moves from “Fad” to “Here to Stay”

A lot of interest, debate and hope for the future of electronic cigarettes has increase since Lorillard (makers of the number 2 selling cigarette in america; Newport) purchased Blu cigs.

Many prominent analysts in the cigarette field believe electronic cigarettes have moved from a Fad to Here to Stay.  Bonnie Herzog, a Wells Fargo Securities analyst, believes soon R.J. Reynolds Tobacco Co will begin selling electronic cigarettes.

“We expect Reynolds to be the next mover into this growing category, most likely organically but we wouldn’t rule out a potential acquisition,” Herzog said.

“However, with Altria, the race is on: who’s next in e-cigs.”

“We think e-cigs are to tobacco what energy drinks are to beverages,” Herzog said.

“E-cigs are profitable, growing quickly, gaining shelf space and consumer acceptance; therefore e-cigs are an important new niche category for retailers.”

David Howard, a Reynolds spokesman says it’s companies policy:

“is to not comment on any rumors or speculation regarding any possible acquisitions.”

According to Pat Shehan, owner of Tarheel Tobacco in Winston-Salem:

“It’s hard to say what it will take to pull Reynolds in, but e-cigs are getting bigger by the month,”

Annually, e-cigs sales about $300 million dollars among 2.5 million users according to data from Tobacco Vapor Electronic Cigarette Association.  Herzog projects this number will climb to $1 billion dollars in a few years.

Pat Shehan, owner of Tarheel Tobacco in Winston-Salem, says:

“It’s hard to say what it will take to pull Reynolds in, but e-cigs are getting bigger by the month,”

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