This just recently in, the attacks on e-cigs are protecting the cigarette market, and big
tobacco they may have something to do with all the continued and increase comission going on at various regulatory agencies and municipal and regional government bodies. Not to mention the campaigns by the pharmas.
This is from Page-7 of Global
tobacco Update from Berenberg which would make me think that Big
tobacco may have a direct or indirect, but invested interest in the problems being raised to ensure personal e-vaporizers, such as e-cigarettes, are not available the masses right away.
6) E-cigarette threat lower: Regardless of the name used for alternative noncombustible
Reduced Risk Products (RRPs) or harm reduction products, we can
draw several conclusions about their effects on the traditional tobacco segment
now that they have been available for a few years: 1) cigarettes are particularly
difficult to create viable substitutes for; and 2) many regulators remain highly
suspicious of harm-reduction alternatives. As such, satisfying both consumers and
regulators is a difficult balancing act.
In our view, there are three main drivers for e-cig/RRP adoption: lower risk, lower
cost and higher ease of use and social acceptability, eg they can be used in more
places than traditional products.
With many regulators or public health officials intentionally casting doubt on the
lower risk relative to cigarettes and other officials placing the same restrictions on
e-cigs/RRPs as they do on combustible cigarettes, cost remains the one key driver
that is largely intact, but this is also coming under threat from high taxes, evolving
technology and changes in the habits of “vapers” who seek a better substitute.
In summary, our medium-term view is that regulators have reinforced the position
of cigarettes for many consumers at the same time that the tobacco majors have
developed, or are developing, RRPs that are better substitutes, improving areas
such as speed of nicotine delivery alongside taste and other sensorial elements.
Although alternatives to combustibles remain a threat to cigarette profits, the pace
of change appears manageable. We believe some of the majors’ products are likely
to be successful, both with the consumer and – almost as importantly – with the
regulators.
) and this would set a dangerous precedent.
