Altria To Debut Electronic Cigarette

Altria To Debut Electronic Cigarette

Altria Group Inc., the largest seller of tobacco in the U.S., is getting into the e-cig business. The company announced that its subsidiary Nu Mark is planning to introduce an electronic cigarette in the second half of 2013, Bloomberg reported.

The electronic cigarette will be sold in an undisclosed market.

As demand traditional cigarette sales are declining, electronic cigarettes are inching closer to the mainstream. Chief Executive Officer Martin Barrington is aiming to catch up to smaller rivals, such as NJOY and Lorillard Inc. (LO), which says its blu eCigs brand controls more than 40% of the U.S. market. Reynolds American Inc. (RAI) said this week it plans to expand its Vuse e-cigarette this year, according to Bloomberg.

Lorillard CEO Murray Kessler told analysts yesterday the company estimates that electronic cigarette sales displaced consumption of about 600 million cigarettes in the first quarter. That totals an annual rate of roughly 2.4 billion cigarettes, accounting for about 1% of the U.S. market, according to Kenneth Shea, a Bloomberg Industries analyst in Skillman, N.J.

Altria To Debut Electronic Cigarette

14 comments ↓

#1 erh@erh.com on 04.26.13 at 11:17 AM

Altria is going to KNOCK IT OUT OF THE PARK!! Big Win!! Get on train and punch ticket!! Just like Marlboro Dip and Marlboro Snus. Big win!!!

#2 Vapor Vixen on 04.26.13 at 12:37 PM

hey erh,
Marlboro dip was a colossal flop.
Marlboro Snus is on the path to being eliminated
no need for the hype
they may do well but to reference both dip and snus as being successful is just absurd
facts are facts

#3 erh@erh.com on 04.26.13 at 1:26 PM

hehehe — vapor vixen you have some of the best posts and now i know all you are missing is a sense of humor!!! perhaps someone will say this is a clever to way bargain down sottera but i think it’s just going to be another flop for Altria.

#4 Vapor Vixen on 04.26.13 at 1:36 PM

alright i wondered but you know all those folks several months ago that were on here have disappeared that were propagandizing that Njoy King product as the holy grail which we all have found falsely claims being equal to 2 packs of cigarettes – NOT! a good stick gets about 140 puffs from what i have been told.
If it weren’t for Marlboro Snus dragging down the Snus category so viciously it would be growing especially with the rapid growth of General.

#5 Cigarman on 04.27.13 at 4:19 PM

too funny folks

#6 sexyvaper on 05.05.13 at 1:02 AM

Always loved that Marlboro man cant wait to see him vaping

#7 Ed on 05.12.13 at 9:32 AM

Once government starts taxing e-cigs
this will be a moot point. Niche category at best .

#8 OTP Kid on 05.15.13 at 6:05 PM

Agreed Ed. The ecigs have had a free ride: no taxes, selling to minors, selling without a license in places like shopping mall kiosks, television and radio ads, smoking them indoors, and did I say no taxes. The category is fad, and will be a niche as you say.

Sell your shares Billy boy

#9 erh@erh.com on 05.16.13 at 9:46 AM

How the category would have grown with taxes and marketing is an interesting counterfactual, and the ultimate impact of regulation and taxation of the category can be debated.

That being said, this category has shown enormous year over year growth for over five years. Dismissing it is a fad is absurd, and frankly just sounds like the sour grapes of those in our challenging industry who are facing declining or static sales.

#10 Vapor Vixen on 05.17.13 at 1:56 PM

Just curious as to thoughts on how ecigs will be taxed?
Puffs? Liquid? ???

#11 erh@erh.com on 05.18.13 at 3:44 PM

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#12 Retailer on 06.24.13 at 7:54 AM

Erh – I hope your right because as a retailer this category has been growing very rapidly. My concern is now that RJR and Altria are in the game the FDA is going to tax and regulate the e- cigs killing their growth. Nothing will kill it quicker than a big tax hit.

#13 Vapor Vixen on 06.24.13 at 11:19 PM

well Minnesota is leading the way – anyone know what $7.99 became in that state?

#14 Novie on 12.02.15 at 6:27 PM

If you have a smoker in your life, falmiy, friend, anyone you care about, it would do you well to look into the truth behind real snus . it could save their lives.

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