Cigarette makers recently facing dwindling volumes have been
dealt yet another blow with the ruling of a court in France. As
per media reports, the decree has stated that e-cigarettes can be
sold only by tobacconists (expert tobacco dealers). The ruling
also states that these cigarettes belong to the same category as
tobacco products, and, therefore, the advertising bans on
cigarettes will be applicable for them as well.
E-cigarettes are becoming increasingly popular especially
among youngsters. These battery-powered devices turn a
nicotine-based liquid into vapor. They were considered less
harmful than tobacco products and therefore the major tobacco
players capitalized on them.
) subsidiary, Nu Mark LLC, introduced its first e-cigarette brand
- MarkTen e-cigarettes - in Indiana in August.
Reynolds American Inc.
) subsidiary, R.J. Reynolds Vapor Company, is expanding the
distribution network of its tailor-made e-cigarette - Vuse.
) captured a leading position in the electronic cigarette
industry in the U.S. after it acquired e-cigarette brand blu
e-Cigs in Apr 2012. Also, in November,
Philip Morris International
) announced its plans to foray into the e-cigarette business.
The verdict could have great influence on other government
bodies that are still undecided on whether to levy the same
regulations on the e-cigarette category as the tobacco products.
The U.S. Food and Drug Administration plans to set marketing and
product regulations for e-cigarettes in the near future as there
is not much scientific evidence to back their ability to help
smokers quit or smoke less. European legislators are expected to
frame regulations for e-cigarettes, based on the risks or
benefits on smokers' health which is a burning topic in the
Moreover, the cigarette makers are facing tough industrial
conditions amid strong anti-smoking campaigns worldwide, where
governments are imposing restrictions on tobacco companies which,
in turn, are leading to a decline in cigarette consumption. In
such a condition, the ruling against e-cigarettes will be
detrimental to the margins of the tobacco biggies in the coming
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