Two Reasons Lorillard's blu e-cigs Are the Next Big Thing

Domestic tobacco cigarette shipments are declining, but e-cig sales are on the rise. While several major tobacco companies have acquired or developed their own e-cig products, the biggest by far belong to Lorillard (NYSE: LO  ) . Lorillard acquired blu e-cigs in 2012, and now controls around 40% of the e-cig market. This will greatly benefit Lorillard in the years ahead as e-cigs become more popular. 

Consumer Goods Editor Mark Reeth thinks that the popularity of e-cigs will skyrocket once consumers realize two of the major benefits of e-cigs: cost savings and health benefits. A high initial price point for blu e-cigs overshadows the savings smokers will experience down the line, while FDA regulations prevent Lorillard from selling blu e-cigs as a way to stop smoking. If and when Lorillard gets past these obstacles, the company is poised for huge profits.

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  • Report this Comment On October 02, 2013, at 12:42 PM, JohnWade304 wrote:

    I am an avid vaporizer user and regularly comment and write <a href="http://vapedrone.com">electronic cigarette reviews</a> so I think I am pretty qualified to comment here. Tobacco companies are starting to buy out these e-cigg companies. They are worried about the growing market share they are losing in the industry. Someone really stuck it to big tobacco and thank goodness. But now big tobacco is coming out on one side trying to lobby through Congress to get eciggs banned and on the other, in case they fail to get it banned, to buy out a company or two. This reduces their risk and is a great move on their part.

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