BT is hedging their bets 3 ways:
1. Pushing for restrictions on online sales and nic
juice (products they do not intend to sell)
2. Creating products very similar to cigarettes, where consumers need to constantly replenish their expensive supplies
3. Popularizing crappy products to disenchant the general public with the e-cig concept.
No. 2 I agree with, because that's the model that's been so successful for so many decades.
I disagree with No. 1 because future FDA regulation will only be enforceable on the products currently being made or planned by tobacco companies. There's no way in bloody hell that a ban on liquid nicotine sales, PG, VG or flavorings could be enforced without sending other larger industries into an even worse spiral.
I disagree with No. 3 because that's not just good business sense. They see a market that is exploding at the expense of their traditional products. They know the score--cigarette smoking is at historical lows and still declining. A part of the reason why is the electronic cigarette and they want some of the action.
I don't think any decent business is so stubborn as to think that spreading crappy products in a market that's already established will drive users back to the very reason the market is thriving the way it is. That would be a waste of millions in R&D, production and marketing costs. The shareholders would have their heads on a plate for pursuing such a stupid business model.
And FWIW, I don't care who makes a quality product. If it does what I want it do and it's being sold at a reasonable price, I'll probably buy it. Agendas are not my glass of beer, so to speak.
I tend to agree with both of you. I'll add with two things really bother me about BT and/or mass-market e-cigs:
1. They are clearly trying to align the price point with tobacco products. Look on the shelf at any store selling them. They are adjacent to the real cigarettes. No big surprise since users of the real ones are who they market to. On the other hand, very coincidental for a price check. So, with few exceptions, you will see e-cigs priced slightly lower than tobacco products. That is, if you believe their equivalency (number of puffs, battery life, and so on) claims.
The real scam here is the tax element. It's well known that the taxes are a substantial part of the purchase of real cigarettes. In some states, multiples of the actual product price. The advertised and displayed prices
never itemize tax components. And rarely is it ever identified or enumerated on the sale receipt. At least in my state, the taxes are paid by the wholesaler as evidenced by the stamp on each pack. Which, of course, doesn't have any monetary value printed on it. Not too surprisingly there is no mention that e-cigs do not include those taxes. And should be priced appropriately, in my opinion. At the moment, that tax gap drops right to their profit line and the buyer is clueless. It's practically theft by deception.
2. You will not likely ever see much flavor choice beyond simulated smoke over the counter. Think about that a minute. Remember a while back when BT was marketing flavored cigarettes? Cloves? The anti-everything crowd got in an uproar, claiming they were marketing to children. Those got shut down quick and yanked off the shelves. I guarantee you that the BT legal teams have forbidden any flavors that deviate from simulating a regular burning cigarette by much.
I predict that #2 will be the lever that BT uses to put the political squeeze on the current e-cig market, especially the B&M vendors of flavored liquids. IBCR I agree that BT will stop short to protect having their own products out there. This flavor/marketing issue will be that point. By placing their products right along side tobacco, and keeping them tightly coupled, they can push a greater agenda that would harm suppliers of better, more diverse products.
IBCR I also agree that BT will not push a "poison the well" marketing plan with their products. But seriously, look at the nasty benchmark that exists. It's not like they have a high hurdle to create a flavor better than a cigarette. And their target market of current smokers are too dull to know any better. To them it's just "different." And, another good reason to chase flavor out of the market. Crazy like a fox.