Tag Archives: Big Tobacco

FDA Announces E-Cigarette Regulations

FDA E-Cig RegulationsThe tobacco deeming regulations were announced this week by the federal government, after years of speculation as to how they would impact the electronic cigarettes industry. As the industry has long been unregulated, it was a continuous discussion that everyone knew wasn’t about if; it was about when. Well, that when is now, and if Congress doesn’t act to overturn these rules, there is the potential for the industry to be quite negatively as a result.

The most confounding aspect of these regulations is that the FDA is categorizing an entire industry’s worth of products that contain no tobacco, as tobacco products. This is done simply to adhere to the February 2007 “grandfather date” and does not account for the thousands of products that simply did not exist at that time. For companies that manufacture vapor products, being able to keep their products on the market will require lengthy paperwork for every product sold, with application costs that can reach as high as $1 million per application. Not many companies, outside of the massive few, and those owned by cigarette companies will be able to front this. And simply, this type of regulation, which targets a growing market is blatantly wrong.

These initial regulations are still being examined, and some rules are less concrete than others, at the moment. Some of the regulations that will go into effect 90 days from now include:

  • No free samples of vapor products can be distributed
  • No sales via vending machines
  • Age verification will be required for purchase, as no sales will be permitted to those under 18, whether online or in retail locations

However, other areas of the nearly 500 page text detailing the deeming regulations are less set in stone, and subject to Congress overturning them. It certainly goes without say, the entire vapor products industry as well as all the researchers involved in examining the benefits of e-cigarettes have been up in arms. There is an overwhelming amount of support for these products, and many feel the positives they possess far outweigh the few negatives.

Currently there is a lot going on as the vape Industry prepares to fight for our rights of equality and by no means is this the end. We have long been ready for these regulations, and we are urging our customers to sign this petition to make it clear to the White House, and to Congress how beneficial vapor products are, and how destructive this type of legislation can be.

To all of our customers, we are here to support you throughout it all, and we look forward to continuing to serve you with the finest in vapor for years to come.

Tobacco Companies Acknowledge Electronic Cigarettes

how-Electronic-cigarettes-workPhillip Morris International Inc. is the world’s largest publicly traded tobacco company. Responsible for many brands including being the manufacturer and seller of Marlboro cigarettes, even they are feeling the effects of electronic cigarettes hitting mainstream status.

Tobacco companies, particularly Phillip Morris International Inc., have begun to acknowledge the fact that tobacco cigarette sales are being impacted by the rise of electronic cigarettes as the population changes. While they are making note that fluctuations are inevitable, the international tobacco market is seeing an overall decrease due to the increase of alternative cigarettes. Users are simply moving away from tobacco, either quitting smoking outright, or switching to alternatives that offer more options and a less tainted image.

In addition to the lagging sales and the overall depreciation of profits, Phillip Morris is also factoring in a loss of $495 million that has come in the way of the impending closure of their production facility in the Netherlands. This is a result of the decreasing sales in their European market due to less people smoking. And it’s not just their European market where they are seeing a decline in sales, their Asian market has also reduced as well.

There is no getting around the fact that electronic cigarettes are not only becoming immensely popular everywhere but they’re having an incredibly overtaking effect on the traditional cigarette market considering they are sparking worldwide declines. It’s interesting that the largest tobacco companies are beginning to publicly recognize this, despite it being obvious for some time now.

Paralleling the declines of tobacco sales, Phillip Morris recently acquired Nicocigs LTD, an electronic cigarette company based in the UK. They are not the first tobacco company to do so, as Lorillard and Altria have already extended into this competitive market.

The bottom line here is that tobacco cigarette companies are fully aware that electric cigarettes are not going anywhere, and continue to expand at an exceedingly fast rate. Vapor is here to stay.

E-Cigarettes: More Popular than Traditional Cigs

Big-TobaccoThe e-cigarette industry is getting so big and so hot that tobacco bigwigs are shaking in their boots! Or should we say filters? After carrying on selling dangerous, deadly products for decades and spending billions to have their way in the market, they are getting outdone by technology, and a more health-conscious population.

E-cigarettes, which are also known as e-cigs and electronic cigarettes, are on the verge of becoming a $2 billion industry, and they are pushing ahead at full steam; with no indication of slowing down.

Users adore the products as they offer a slew of benefits, and a massive amount of control for the user. Many smokers have found them to be very easy to transition to from smoking cigarettes, and they are able to do so easily. E-cigarettes cost less, and are actually quite enjoyable to use, some users get so into the products, e-cigs actually become a hobby for them! While traditional cigarettes have became rather old fashioned and filthy in appearance and stigma, the opposite is true of e-cigs, which offer all the futuristic benefits of the digital age: a streamlined approach, high design that offers both attractive looks and great functioning, the fact that they are digital products, and they provide all the many different options in flavor and usability a bored smoker could want!

Suffice it to say, e-cigs are really hot, and big tobacco knows they have to make drastic moves to keep up. Which is precisely why Lorillard and Reynolds American are gearing up to merge into one e-cigarette superpower in efforts of doing so. Lorillard, which owns Blu eCigs, sees the need to expand and evolve if they are to remain in the game, as the future for tobacco is increasingly on the decline. Mergers happen all the time in big business, and it only goes to show how big the industry is getting if the top names in tobacco are desperate enough to have to work this hard to keep up.

Innovation usually surpasses older modes that have become outdated and right now we are watching e-cigarettes do just that. As the landscape for nicotine and smoking changes, you know you can count on International Vapor Group to be at the heart of it!