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Tobacco giants move in on electronic-cigarette makers

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A vendor displays electronic cigarettes. Photo: Reuters

For a decade, small purveyors of electronic cigarettes have largely had the US market to themselves. Now, with sales projected to double to US$1 billion this year, brands with such names as Logic, Njoy and Vapor are waiting to exhale as giant tobacco companies begin to invade their turf.

In August, Altria Group, the largest cigarette maker in the US, will start selling its MarkTen electronic cigarettes in the state of Indiana. No2 maker Reynolds American plans a national roll-out of its Vuse electronic cigarette, beginning in the state of Colorado next month. Lorillard has boosted distribution of its Blu eCigs to more than 80,000 stores.

The tobacco companies' moves come as officials seek to determine if the devices are safer than traditional cigarettes. Users inhale vapour created when a battery-powered tube heats a liquid nicotine solution, giving them a hit without burning or smoke. On June 12, the British government said electronic cigarettes should be regulated as medicines to ensure quality and safety. France plans to ban them from public venues; several US cities have already.

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The US Food and Drug Administration, which regulates tobacco products, has yet to impose rules for the devices.

Most electronic cigarettes are made in China, where they were invented by pharmacist Hon Lik.

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