Reynolds American (NYSE:RAI) announced today that it will begin distributing its e-cigarette line nationwide starting Monday, nearly a year after the VUSE product launched in Colorado and several months after it went on sale in Utah.
Reynolds, via subsidiary R.J. Reynolds Vapor Company, will starting selling its VUSE Digital Vapor Cigarette across the country at "selected retail outlets," with plans for additional distribution as the year progresses, according to the company press release. E-cigarettes heat liquid containing nicotine.
"We are proud to expand our distribution of VUSE and offer adult smokers across the nation the most technologically advanced and best-performing digital vapor cigarette on the market," said R.J. Reynolds Vapor Company President Stephanie Cordisco in today's press release.
According to the press release, VUSE has seen success during rollouts in Colorado and Utah over the past year, "quickly [becoming] the best-selling vapor product in both states." As an important nod to customer loyalty (and something investors want to watch), the press release also noted that those sales included "high levels" of repeat purchases. The press release included no figures.
The VUSE Solo includes a flavor cartridge in original or menthol, a rechargeable power unit and a USB charger. Each VUSE cartridge lasts about the equivalent of one pack of traditional cigarettes, according to the company.
Tobacco companies have been aggressively entering the e-cigarette market in recent years in a race to stay relevant. While Reynolds American has seen initial success with its VUSE line, this national roll-out could prove to be the real test for its latest product.
Justin Loiseau has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.