Sales of e-cigarettes continue to soar
LONDON. January 22. KAZINFORM Electronic cigarette makers have become increasingly aggressive in their advertising in the US, with one company even proclaiming that "Big Tobacco" has met its match. But the burgeoning industry is worried that an onslaught of taxes and regulations could snuff out its recent success.
The new assertiveness comes as tobacco analysts have started to acknowledge that growing demand for "e-cigs" in the US is peeling away customers from tobacco giants such as Altria, Lorillard and RJ Reynolds, Kazinform refers to CNN.
Upstarts such as NJOY, Vapor and Logic are spending more on marketing and advertising, to make the case for their products as a viable smoking alternative.
E-cigarette makers have even ventured into television in both the US and UK -- taboo for tobacco groups -- with advertising for their products
"Our mission is to 'obsolete' cigarettes," said Craig Weiss, chief executive of NJOY, the leading US e-cigarette maker by market share. "We think of ourselves as the digital to their analogue."
Sales of traditional cigarettes have been declining steadily in the past decade. According to the US Centers for Disease Control and Prevention, consumption of smoked tobacco products fell 27 per cent from 2000 to 2011, as taxes increased and smoking bans at bars and restaurants took hold.
Meanwhile, sales of e-cigarettes have soared, doubling during the past two years to $300m in 2012 and on pace to reach $1bn in annual sales in the next few years, according to estimates by Goldman Sachs. The category is being compared with energy drinks and Greek yoghurt -- bright spots in declining consumer markets.
Read more