The revolution did not start in the c-store channel. It started out quietly, from your home, where you, the customer, browsed the Internet and found vendors from the Asian continent and Western countries selling something different, something revolutionary, something not found in your local c-store or drug store: electronic cigarettes.
Just a few years ago—about the time Twitter and Facebook were starting to attract serious attention—this battery-charged product was beginning to make its way to trade events such as The NACS Show, largely relegated to small booths far removed from pedestrian traffic.
How times have changed. Since only 2010, e-cigarettes have:
- Ballooned to an estimated $1 billion business in the United States, with prospects of topping $2 billion by 2014.
- Captured the attention of the tobacco arm of the Food and Drug Administration (FDA).
- Penetrated nearly 100% of all c-store chains and most independents.
- Mushroomed to more than 200 suppliers, who, like salmon swimming upstream, are fighting to be among the select few who survive and thrive.
- Piqued the interest of Big Tobacco, with Lorillard, Reynolds and Altria all now fully entrenched in the e-cig game.
- Made countless headlines across consumer and trade publications. Most recently, Time magazine proclaimed e-cigs “the future of smoking”—fueling a hot debate on whether e-cigs are truly a revolutionary cessation device, the salvation of anti-smoking advocates or the gateway for a new generation of smokers.
How did a product barely on our minds and mouths only five years ago become one of the most hotly discussed, polarizing products in recent memory?
“The e-cigarette segment could be the most transformative thing to happen to this industry since the invention of the automatic cigarette-making machine in the 1890s,” says Ron Tully, vice president of public affairs for National Tobacco Co., Louisville, Ky. “What we are seeing with this segment is a true cigarette alternative for adult smoking consumers seeking to switch from a combustible tobacco product.”
Modest Beginnings
A true cigarette alternative was exactly what Chinese pharmacist Hon Lik had in mind when he developed the technology that would serve as the foundation for the electronic-cigarette movement. Lik’s 2003 invention was reportedly created in response to the death of his father, a heavy smoker who died of cancer.
It would take more than three years for electronic cigarettes to make their way to the U.S. market, where they began retailing both online and in mall kiosks. It wasn’t what you’d call a sales boom: These early versions were almost exclusively sold as rechargeable kits that cost upwards of $150.
Both regulatory officials and the public at large were understandably perplexed: Was it a tech product? A slick new form of tobacco? A cessation device that truly addresses all aspects of smoking addiction?
The FDA suspected the last option and in 2009 began seizing shipments of electronic cigarettes as unapproved drug-delivery devices. Early pioneers of the segment—including Scottsdale, Ariz.-based NJOY—fought back, obtaining an injunction against these seizures on the grounds that they were not making any therapeutic claims.
“Had the FDA succeeded,” says NJOY CEO Craig Weiss, “all such products would have been forced off the market, pending a multimillion-dollar, years-long FDA approval process that would have effectively prevented the industry from ever getting off the ground.”
The U.S. Court of Appeals upheld NJOY’s injunction in 2010, finding that the FDA could regulate electronic cigarettes only as tobacco products. The ruling not only gave this nascent segment a legal classification, but it also opened the door for the convenience channel—the largest retailer of tobacco products in the United States—to become the brick-and-mortar destination for the electronic revolution.
Seemingly overnight, electronic cigarettes stormed the industry, with everyone from 7-Eleven to single-store owners now solidly committing to the segment. Big Tobacco joined the rush: Lorillard was first, with its $135 million purchase of blu eCigs in 2012; it was followed shortly by other established tobacco players, including Swisher, Kretek and National Tobacco.
By the end of 2012, e-cigarettes had matured from niche novelty product to what many retailers believe could become the single largest in-store category by 2020.
“Tobacco for a long time had this taint of being a ‘dying category,’ ” says William Slattery, tobacco category manager for Dallas-based Alon Brands Retail. “That there’s now some true potential growth for retailers in this business is great. How long has it been since a tobacco category manager could get excited about a new product?”
From Prospect to Potential
Despite the excitement, despite the entrance of trusted tobacco players into the space, many retailers were skeptical. This was especially true in the first years of electronic cigarettes, when the field was flooded with unknown companies with little experience in the retail world, hawking products of dubious quality.
“Early on, we saw products that couldn’t be supported, whether it be with merchandising or day-to-day support,” says Jason Healy, founder of Charlotte, N.C.-based blu eCigs (now a part of Lorillard Tobacco Co.).
Even retailers who saw e-cigarettes’ potential took their time to properly educate themselves on a product unlike anything else in the tobacco category—and perhaps unlike anything else in the entire c-store channel.
Though Steve Monaco, director of category management for Rockland, Mass.-based Tedeschi Food Shops, was not skeptical of electronic cigarettes, it wasn’t until last April that he jumped into the e-cig segment with both feet.
“[Our] hesitation was based on obtaining as much knowledge about the category as possible before we would roll it out,” Monaco says. “That way we were able to share this knowledge with our store operators, who in turn could talk intelligently with the consumer.”
Because electronic cigarettes are arguably as much a tech product as a tobacco product, there’s plenty for retailers to learn. Thus, when Slattery took over Alon’s tobacco category last year, he “immersed” himself in the segment.
“I’ve probably learned more about electronics over the course of the last year and a half than any other category I’ve managed in the last three years,” he says. “It’s amazing how much there is to know about these products and the companies who make them.”
To stay on the safe side, many retailers have opted to dip their toes in the metaphorical waters by bringing in an established leader such as NJOY or blu. Nielsen shows blu as a dominant force in the c-store channel, earning 45.3% dollar share and 37.2% unit share as of Sept. 28, 2013, followed by NJOY at 22.5% dollar share and 20.1% unit share. These companies, along with others such as Logic and Fin, were among the first to grab the retail stage. They continue to use their national presence as a competitive advantage.
“Choosing which brands wasn’t that difficult because NJOY and blu were the only ones who called on us,” says John Strickland Jr., president of Goldsboro, N.C.-based Wayne Oil Co. “They both seem to be very interested in marketing the product, they talk to us frequently and they’re interested in reviewing our scan data.”
Strickland is far from alone: NJOY’s products are sold in 70,000 retail locations nationwide, including Sheetz and 7-Eleven stores, while blu is merchandised in chains such as 7-Eleven, Circle K, Speedway and Chevron.
Lou Maiellano, president of TAZ Marketing & Consulting Group, Sevierville, Tenn., champions a strategy that features more national brands coupled with local and/or regional players.
“Just because a manufacturer has broader distribution, that doesn’t mean they’ll be a top seller in your stores,” he cautions.
Indeed, it’s becoming rare to see retailers carrying only one or two brands.
“Major retailers are carrying the key brands, and many c-store operators are taking on new brands and SKUs because the category is giving them growth and margin opportunities,” says Bonnie Herzog, managing director of beverage, tobacco and convenience store research for Wells Fargo Securities LLC, New York.
John Geoghegan, director of strategic planning and brand development for Moorpark, Calif.-based Cig2o manufacturer Kretek International Inc., agrees that carrying a variety of brands is a smart move. “When consumers enter a retail store, they expect three to five different brands, as well as disposable and rechargeable SKUs,” he says.
Kyle Sloan, tobacco category manager for Oklahoma City-based Love’s Travel Stops & Country Stores, is following this strategy, carrying NJOY, blu, Fin and Nicotek products—and constantly watching the market for additional opportunities.
“There is a possibility for brand expansion,” he says. New product innovations, he says, would drive his decision to bring in a new brand or product.
Fielding a similar mix, Alon’s Slattery turned to an unlikely source—the Internet—when looking for a fifth brand. There, he discovered Green Smoke, which traditionally sells its products online.
“When you look at who’s buying and where they live, we have a lot of their customers in our area,” Slattery says. “It made sense to chase after them. Those consumers are already there.”
And as the segment continues to evolve, more retailers are carrying a mix of brands and of products. Disposables took an early hold in the value-conscious c-store channel, but as consumer awareness has grown, so have sales of more profitable starter kits and cartomizers.
“The rechargeable product has been our dollar driver and is starting to mature,” Sloan says.
Selling Is Believing
Whether early to the segment or a recent entrant, whether carrying one brand or five, retailers overwhelmingly are starting to believe in the segment’s potential.
“The margins are pretty good,” says Strickland. “[And] interestingly, we have not seen a fall-off on our cigarette sales, and we continue to grow electronic sales. I don’t think we’ve reached that point yet where one segment is going to cannibalize the other.”
Besides profit-friendly margins, the segment is clearly far from a plateau. Strickland started carrying electronic cigarettes only in the first quarter of this year but is already seeing results. “It’s one of the few items we sell that’s having consistent double-digit growth,” he says.
The same goes for retailers who jumped in early. Alon has been carrying four brands for nearly two years, with Slattery reporting that “sales have not slowed down one bit; these products continue to do great for us.”
With Nielsen just beginning to report on sales of electronic cigarettes, it’s been a challenge for retailers to establish what exactly constitutes the “great” numbers described by Slattery. Pittsburgh-based Management Science Associates Inc. estimates the national average of distributor-supplied products to be 11 electronic-cigarette-equivalent units (i.e., a mix of 11 disposable units or cartomizers) per week, though given the rapid growth of the segment, that figure is constantly in flux.
The dollar-sales data is even more promising: Herzog reports up to $600 million in annual brick-and-mortar e-cigarette sales, with c-store dollar sales growing 156.3% in the period concluding Sept. 28, driven by 95.5% unit growth and a 31.3% increase in the selling price. (The average price per cartomizer was $6.28 vs. $4.79 a year earlier.)
FDA on the Way
It’s true that electronic cigarettes have been growing by double digits since they burst onto the retail scene, and they’ve prompted comparisons to energy drinks. But remember: Energy drinks never faced strict regulations from the FDA that could limit marketing and innovation.
One of the most striking advantages e-cigarettes have enjoyed over their cigarette brethren is the complete lack of regulations in the subcategory. Unlike other tobacco products, electronic cigarettes can be advertised virtually anywhere—NJOY ran TV ads during the Super Bowl and Oscars—and do not need FDA approval to bring a new product to the market.
For now, that is. With an announcement on deeming regulations having been expected in October and several federal and state legislators proposing e-cig excise taxes, plenty of challenges are pending. Can the segment thrive in a regulated, taxed and consolidated world?
While it’s generally agreed that electronic cigarettes will be regulated in some way, no one is certain whether the agency will impose the same strict restrictions currently on tobacco cigarettes or acknowledge the products’ potential health benefits. (See sidebar on p. 55 for potential regulations.)
Herzog believes it’s likely that the FDA will limit or ban online sales and enact tighter restrictions as a way of preventing youth access. All of these measures “could slow growth trajectory a bit, but then it will continue,” she says.
Clearly, an online ban and minimum purchase age are supported by the c-store channel, because most retailers already practice age verification and would benefit greatly if electronic cigarettes could be sold only by brick-and-mortar retailers.
It’s a different story if the FDA decides to limit youth access by forcing electronic cigarettes to be merchandised behind the sales counter. While some retailers—including Slattery—believe this move is inevitable and have thus incorporated electronic cigarettes into the backbar, others believe this could create harsh obstacles.
“We’ve seen a particular retailer [do this], and this change caused total sales to drop by nearly 50%,” says Greg Doyle, CEO of Metro brand parent Nicotek LLC, Wheat Ridge, Colo. “This product line is too raw to hide. We have consumers to educate, and we will not be successful in continuing this rapid growth by hiding the product.”
Another critical question is whether consumers will turn away should e-cigs be hit with the excise taxes that affect most of the current tobacco set. Put bluntly, could taxation kill this exciting new segment?
The federal government has not yet passed a tax on electronic cigarettes, but Strickland and others see it as just a matter of time. Minnesota became the first state to enact an e-cig tax, applying the 95% tobacco products tax to the wholesale cost of disposable units. So now, if a product wholesales at $5.90, a tax of $5.60 is applied, resulting in a cost of $11.50—which brings the suggested retail price of a single disposable e-cigarette to $16.89.
“It’s been a challenge for us operationally,” says Sloan, who has stores in Minnesota. “This influences the way we can set pricing, it makes things much more complicated and it’s definitely hurt our sales.”
And if sales begin to dwindle, how long will it be before retailers are forced to sacrifice their margins in order to grow the category?
“It could change the value equation between electronic and combustible cigarettes and force e-cigarette manufacturers to reduce prices and margins,” says Kretek’s Geoghegan. “I don’t think they can take a big hit all at one time from federal taxes at an equivalent rate to cigarettes.”
Those are the questions that are beyond retailers’ control. Then there’s the question most operators privately ask themselves: With about 250 electronic-cigarette companies flooding the market, what happens if one of my brands goes under?
“I don’t know how long the industry can withstand however many vendors there are on the market right now,” Strickland says. “I do think you can make a case for how many of these companies will actually answer the phone once these regulations get stamped.”
According to Carlos Bengoa, president of CB Distributors Inc., Beloit, Wis., not only are there too many companies, but there are also too many companies making subpar products.
“There are too many brands in the market that don’t meet the minimum standards to be taken seriously by any large chain,” says Bengoa, whose company produces 21st Century Smoke. “Many [e-cigarette manufacturers] lack real liability insurance or at least adequate coverage, as well as quality control. They use cheap and unreliable batteries and manual [e-liquid] injection.”
FDA regulations—along with the entrance of Big Tobacco—will likely accelerate consolidation, weeding out pretenders from contenders, says Miguel Martin, president of Logic Technology, Livingston, N.J.
“The FDA will wipe out a lot of these [e-cigarette] companies that don’t have financial stability and solid production capacity and who focus on online sales and flavors,” says Martin. “[Success] starts with having a high-quality product consistently manufactured in an FDA-compliant way. That’s hard and expensive to do.”
Promise for the Future
It’s absolutely true that electronic cigarettes are in their infancy, with lots of unknowns about the future and which companies will survive. However, early scientific evidence is giving both health experts and retailers reasons to be optimistic about the segment, even in the face of regulatory and tax-based challenges.
“There is a growing body of scientific evidence that indicates electronic cigarettes may have a very meaningful potential to reduce the harms associated with traditional cigarette smoking,” Dr. Richard Carmona, the former U.S. Surgeon General who recently joined NJOY’s board of directors, told CSP in a rare email interview.
Carmona specifically cites evidence that electronic cigarette vapor could be significantly less toxic than tobacco smoke because of the lack of combustion, which “generates the carbon monoxide and most of the thousands of toxicants to which traditional cigarette smokers are exposed.”
Health advocates such as Keith Ablow are also encouraged that electronic cigarettes not only deliver nicotine in a healthier way than combustible cigarettes, but also address the behavioral aspects of cigarette smoking commonly ignored by traditional nicotine-replacement therapies.
Ablow, a psychiatric expert and TV personality, saw these results firsthand in a clinical study funded by Logic, in which Ablow monitored the habits of traditional tobacco smokers who were given the option of electronic cigarettes.
After three months, 70% of participants were no longer consuming tobacco, and 47% of those stopped using electronic cigarettes as well.
“I’m convinced,” Ablow says, “that electronic cigarettes represent the most powerful way we have to reduce peoples’ use of tobacco—or eliminate it altogether.”
Like Ablow and Carmona, the FDA—specifically Mitch Zeller, the new director of the agency’s Center for Tobacco Products (CTP)—is intrigued by a less harmful, potential cessation device. The potential for harm reduction speaks to Zeller’s vow that any tobacco regulations proposed on his watch must be supported by science and benefit public health.
“In an effort to create lasting regulations, FDA decisions must be based on the strongest possible science,” Zeller said in July. “In doing so, our policies will strengthen the legal precedent and change the tobacco marketplace as we know it.”
While this comment was in response to an advance notice of proposed rulemaking (ANPRM) on menthol, Zeller addressed electronic cigarettes specifically during an appearance at this year’s NATO Show.
“Products like e-cigarettes are very interesting,” Zeller said. “You can look at them in the abstract from a harm perspective and say: If it’s not tobacco, if it’s not combusting, then does it make sense to look at it as something that might be potentially much less harmful than any combustible tobacco product that’s out there?”
But the FDA does not regulate in the abstract. Zeller continued that any regulations would have to look at how the public is using electronic cigarettes. It’s one thing if smokers are using electronic cigarettes as a cessation device or a replacement for cigarettes; it’s another if they are being used as a substitute in places where smokers cannot use tobacco cigarettes.
“These are complicated questions of behavior, complicated questions of public health, and e-cigarettes raise all of these questions,” Zeller surmised.
As complicated as the questions may be, it appears as though enough have been answered to start the regulatory process. It’s been rumored that before the government shutdown, the FDA had provided proposed deeming regulations to the Office of Management—the last step before making a public announcement.
In the Year 2018 …
Though it’s impossible to get a clear picture of the future before these regulations are announced, the entrance of Altria, Reynolds and Lorillard has made it easier to envision what the segment may look like in five years’ time.
“With Reynolds and Altria joining the mix in the next nine to 12 months, consumers will begin—if they haven’t already—to accept this form of obtaining nicotine in a less harmful manner,” says Monaco. “Big Tobacco will play a huge role in the segment’s success.”
That’s especially true when it comes to the retail environment, where companies such as R.J. Reynolds have ruled supreme. “We are focusing distribution efforts within this channel because we believe c-stores provide the best opportunity to gain product awareness and trial by adult tobacco consumers,” says Richard Smith, communications lead manager for Reynolds.
Herzog predicts that the big manufacturers will likely win the e-cigarette war, because they have the advantage thanks to a treasure trove of cash to invest, further enhanced by billions of dollars from non-participating manufacturer credits and the discontinuation of the Federal Buyout Fee.
“They also enjoy large sales forces and distribution networks, and they are obviously well entrenched in the retail and c-store channel,” says Herzog. “In addition, they have a vast database of (smoker) customers and they know these customers very well.”
Though Big Tobacco knows how to market and distribute tobacco products, Logic’s Martin contends that it’s not a foregone conclusion that they’ll dominate electronic-cigarette trade—especially with tobacco retailers’ negative image in the eyes of both the public health world and many retailers bitter over strict cigarette contracts.
“There will probably be three to four national brands that demand 70% to 75% of the business and six to seven other brands, including regional brands,” he says. “Clearly there’s room in this environment for well-funded, thoughtful independent electronic-cigarette companies.”
Of course, retailers are probably more invested in how electronic cigarettes are performing than how many companies are succeeding in the next five years. Herzog predicts that e-cigarette consumption could outpace traditional cigarettes over the next decade, with margins for the former surpassing the latter by 2017. Five years from now, Herzog believes a $10 billion e-cigarette market is entirely possible, even in the face of taxes and regulations.
“I don’t like to speak in definites, but this segment absolutely has the potential to be a long-term life-saver for the category,” says Slattery. “This could be the beginning of what I view as a transformation for tobacco. I think it could be something that turns the category around for the long term.”
In truth, the segment is still in its crawling stage. “It’s a new and emerging category, and time will tell how it is going to evolve,” says Altria spokesman Brian May.
That’s evident in the growing popularity of e-liquids, which allow consumers to create their own blend of nicotine “juice” to vape. Though newer to the market than electronic cigarettes, vapor lounges are popping up across the country to cater to the high-end vapers of e-liquids.
“Some have suggested that the future of the business is in e-liquids,” Maiellano says. “I’m not saying that’s the case, but there’s still so much up in the air. Where will we be when the vapor clears?”
It’s an important reminder that e-cigarettes are not just tobacco products, but also a part of the tech world. Just look at RJ Reynolds’ new, highly digitized Vuse, which gauges every puff. And the tech world innovates at a much faster rate than tobacco.
“Electronic cigarettes are like iPhones,” Herzog says. “We’re only on version one.”
Perhaps a more appropriate description would be Apple’s iPhone predecessor, the iPod: As technology advanced, it went from a music player to a video player, then to a video-playing version that also surfs the Web, eventually evolving into the iPhone and the iPad.
The notion of making phone calls from an electronic cigarette may seem laughable. But 10 years ago, who could have predicted that we’d be charging cigarettes on a computer? The possibilities for innovation are endless.
Supplier Standouts
Amid a multitude of players on the market, here’s how some of the more successful electronic-cigarette companies are distinguishing themselves:
- Going “Big”: Admittedly, Big Tobacco was late to the e-cig game: R.J. Reynolds, Winston-Salem, N.C., and Altria Group Inc., Richmond, Va., are only just now testing their proprietary Vuse and MarkTen offerings, respectively. Wells Fargo analyst Bonnie Herzog doesn’t think their late arrival will hinder their success, thanks to the companies’ deep pockets and established success in the retail environment. Altria spokesperson Brian May echoed Herzog’s sentiments: “Electronic cigarettes are an extremely competitive category, but we’ve had a long track record in the tobacco category of being able to best meet the preferences of adult smokers.”
- Hiring “Big”: Alternatively, brands such as NJOY and Logic Technology have stocked their management teams with tobacco industry veterans: NJOY executive vice president Roy Anise and senior vice president of sales and distribution Vito Maurici previously held positions at Philip Morris USA, and Logic president Miguel Martin once served as a senior vice president for Altria.
- E-Cig-Tobacco Partnerships: Rather than develop their own product, other tobacco companies have opted to work with an established player. Like Lorillard Tobacco Co., which acquired blu eCigs in April 2012, National Tobacco Co. saw a benefit to a partnership and began working with Miami-based v2 Cigs in April. “Tobacco companies are not e-cigarette companies and e-cigarette companies are not tobacco companies,” says Ron Tully, National Tobacco’s vice president of public affairs. “That knowhow cannot be developed overnight.”
- “We’re Not Big Tobacco”: Given the mixed feelings about contracts and squeezed cigarette margins of recent years, some retailers may prefer partnering with independent electronic-cigarette companies, which some may find more flexible in terms of contracts and pricing, according to Tony Vecchie, senior vice president of sales and distribution for Northbrook, Ill.-based Eco-Cigs Inc. John Wiesehan III, vice president of sales for Ballantyne Brands, maker of Mistic, agrees that not having strong ties to Big Tobacco “can actually work in a brand’s favor, given the negative perceptions among the tobacco industry.”
Potential Regulations
The FDA faces a difficult task in regulating a product evolving at a rate more like cellphones than cigarettes. “Regulating e-smoking products in the context of traditional tobacco is somewhat akin to regulating airplane technology using regulations framed around automobiles,” says Ron Tully, vice president of public affairs for Louisville, Ky.-based National Tobacco Co. “What regulators seem to be attempting to do here is drive a square peg into a round hole.”
Yet FDA regulations are undoubtedly on the way, with varying degrees of acceptance and support from electronic-cigarette companies and retailers alike:
Widely Supported:
- Minimum purchase age
- Best manufacturing practices/product quality standards
- Online sales ban or limitations
Widely Opposed:
- New product approvals/substantial equivalence
- Advertising bans or limitations
- Blanket application of cigarette regulations
Supported by Some, Opposed by Others:
- Flavor Ban: While companies such as NJOY and Logic offer only tobacco and menthol products, others, including blu, offer a variety of flavors. Public health advocate Michael Siegel believes e-cig flavors provide additional incentive for tobacco smokers to make the switch.
- Backbar Placement: Many retailers believe this is inevitable, but others believe it would stifle growth. Steve Monaco, director of category management for Tedeschi Food Shops, Rockland, Mass., says, “To be effective, the product needs to be displayed in direct line of sight to the consumer at the cash register.”
- U.S. Manufacturing: Nearly all e-cigarettes are made in China, which keeps costs low but creates doubts about product quality. While some manufacturers, such as CB Distributors, make regular trips to ensure manufacturing practices, others, including Reynolds and Ballantyne Brands, are considering a manufacturing move to the United States.
The Other Side
While many scientists are touting the potential of electronic cigarettes, anti-smoking groups aren’t buying into the hype. As early as 2009, organizations such as the Campaign for Tobacco Free Kids, American Cancer Society, American Heart Association and the American Lung Association have called for an outright ban on electronic cigarettes.
The Center for Disease Control and Prevention (CDC) is seemingly fueling the anti-e-cig fire: The release of a September National Youth Tobacco Survey loudly proclaimed that the percentage of high school students who had tried electronic cigarettes had doubled from 2011 to 2012. The CDC’s coverage failed to acknowledge that the number of youths actually using e-cigarettes has not substantially increased and is holding at the low figure of 0.5%. It also failed to track how many teens were trying electronic cigarettes as a cessation device (as the majority of adults do). But that didn’t stop the president of the Campaign For Tobacco Free Kids from using the study to blast electronic cigarettes and the tobacco industry as a whole.
“This jump in youth e-cigarette use comes as marketing for e-cigarettes has skyrocketed and increasingly uses the same slick tactics long used to market regular cigarettes to kids,” Matthew L. Myers said in a release. “This explosion of e-cigarette marketing threatens to undo decades of efforts to deglamorize smoking to kids.”
Myers also contended that the entrance of Altria and Reynolds will only worsen the situation, hitting on a possible explanation for why anti-smoking groups are so opposed to electronic cigarettes: an ingrained mistrust of Big Tobacco.
“The tobacco industry is not a hero in the public health world,” says Charles Connor, former American Lung Association CEO. “I think that the entry of Big Tobacco into electronic cigarettes is going to present some optics issues for how the public health community views this segment.”
Big Tobacco or not, Michael Siegel—a former researcher for the CDC who now actively supports electronic cigarettes—says the scientific evidence simply does not support the regulations anti-smoking groups are calling for.
“This is one of the most baffling observations in my entire public health career,” Siegel says. “The only explanation I can think of is that the ideology is so strong that these groups cannot bring themselves to endorse any activity that even looks like smoking. I think it is an example of ideology triumphing over science.”
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