Lorillard reports sales of 14 million blu eCigs during 3Q2012

[Bill Godshall]

Lorillard reports 2.0% decline in cigarette shipment volume during 3Q2012 (including a 2.7% decline in Newport volume)
and net sales of 14 million blu eCigs during 3Q2012.
Lorillard » Investor Relations » News= (3Q2012 report)
http://edge.media-server.com/m/p/8nfufsxs/lan/en (blu eCigs costs and sales cited 5 minutes into conference call presentation)

 

[TTK]

Where is wv2win? He will probably be here shortly.

 

[Vocalek]

How many of the 14M were of disposables? (I'm trying to figure out what this means in terms of numbers of ex-smokers)

 

[Bill Godshall]

There were lots of questions in the Q&A regarding blu eCigs during this morning's conference call (beginning aroung 25 minutes into the call) at
http://edge.media-server.com/m/p/8nfufsxs/lan/en

 

[Bill Godshall]

Vocalek inquired:

How many of the 14M were of disposables?

No further sales volume data (other than 14 million units sold) for blu eCigs were provided by Murray Kessler during today's conference call.

 

[YKruss]

Vivien Azer - Citigroup Inc, Research Division
Understood. On the blu eCigs business, you mentioned a big piece of that is online, can you quantify that at all?

Murray S. Kessler - Chairman, Chief Executive Officer and President
I could, but it's so irrelevant at this point because it's going to -- when you go from 10,000 storefronts to 50,000 storefronts here in the next month or so -- we'll give you some more information. And we haven't talked about it too much, but I think it's going to make sense. I'm not going to make 100% commitment right now, but I think it makes sense that come this spring for us last year, we went to CAGNY. Maybe this year, we do an investor conference and we give you a deeper dive on the blu business once we get it up and running at retail. And we have the data, and then we'll talk about -- by then, we'll be able to give you more color on what's going on in the environment. So let's hold that off until that period of time. In the meantime, the business is going very well. You should be seeing national television commercials, print advertising all on the new campaign. You should be able to start walking into retail chains, major retail chains seeing the brand there. By the time we get out of October, a lot of the merchandising units are shipping now. You should start seeing blu merchandising homes that [indiscernible] e-cigarette category showing up at retail. So you should see a much more professional, much more organized look to the e-cigarette category here as we go to the fourth quarter.

Lorillard Management Discusses Q3 2012 Results - Earnings Call Transcript - Seeking Alpha

 

[Bill Godshall]

Around 59 minutes into today's conference call, Murray Kessler mentioned that in 4Q2012 the number of retailers in the US selling blu eCigs will expand from 10,000 to about 50,000.

 

[YKruss]

Bill,

My link above your post has a transcript.

 

[junkman]

Accretive to eps in first year.

 

[junkman]

Sees further regulation and consolidation of industry into retail, i.e. away from online. Sounds like the beginning of the end of vaping as we know it or am I paranoid?

 

[DC2]

Sees further regulation and consolidation of industry into retail, i.e. away from online. Sounds like the beginning of the end of vaping as we know it or am I paranoid?

No, you are not paranoid, this is a real concern.

 

[Bill Godshall]

junkman wrote:

Sees further regulation and consolidation of industry into retail, i.e. away from online. Sounds like the beginning of the end of vaping as we know it or am I paranoid?

If Obama wins the election, the FDA almost certainly will impose many unwarranted prohibitions (which they call a "deeming" regulation) in Chapter IX of the FSPTCA on the marketing of e-cigarette products under the guise of "protecting the children".

If Romney wins, there may be no new FDA regulations for e-cigarettes (as Romney, Ryan and most Republicans have railed against unwarranted regulations), or at least less onerous regulations than what Obama's FDA has promised they'd impose during the past 18 months (as they've continued to misrepresent the scientific evidence and demonize e-cigs).

Obama's FDA has already finalized the "deeming" regulation, and has sent it to the Office of Management and Budget (OMB) for their sign off (which is required before any new federal regulation can be officially proposed).

As such, it appears that Obama's FDA may be trying to slip their regulation through during the presidential transition (should Romney win).

 

[Petrodus]

A good reason not to vote for what the main stream media
considers to be the "anointed one"

 

[Petrodus]

For the benefit of new members surfing this forum
and upset with the FDA ... The FDA couldn't care less.
Make a note in your diary and move on.
(sarcasm)

 

[junkman]

junkman wrote:



If Obama wins the election, the FDA almost certainly will impose many unwarranted prohibitions (which they call a "deeming" regulation) in Chapter IX of the FSPTCA on the marketing of e-cigarette products under the guise of "protecting the children".

If Romney wins, there may be no new FDA regulations for e-cigarettes (as Romney, Ryan and most Republicans have railed against unwarranted regulations), or at least less onerous regulations than what Obama's FDA has promised they'd impose during the past 18 months (as they've continued to misrepresent the scientific evidence and demonize e-cigs).

Obama's FDA has already finalized the "deeming" regulation, and has sent it to the Office of Management and Budget (OMB) for their sign off (which is required before any new federal regulation can be officially proposed).

As such, it appears that Obama's FDA may be trying to slip their regulation through during the presidential transition (should Romney win).

Any chance to get a copy of the submitted "deeming" reg? Or is it not public at this point? I searched for it and didn't find it... I did find this which is a pretty good read .....http://www.troutmansanders.com/file...7-4c24-b1ea-854594be1a74/ssAPR12_Troutman.pdf

 

[grandmato5]

Obama's FDA has already finalized the "deeming" regulation, and has sent it to the Office of Management and Budget (OMB) for their sign off (which is required before any new federal regulation can be officially proposed).

As such, it appears that Obama's FDA may be trying to slip their regulation through during the presidential transition (should Romney win).

This is not good news When did they submit their proposal to the OMB for sign off ?

 

[rothenbj]

Sees further regulation and consolidation of industry into retail, i.e. away from online. Sounds like the beginning of the end of vaping as we know it or am I paranoid?

I read in the same inferences. I could see BT getting behind the ANTZ to support brick and mortar only. Heck, they own the distribution network, why not stiffle the competition.

 

[Petrodus]

If Obama wins the election, the FDA almost certainly will impose many unwarranted prohibitions (which they call a "deeming" regulation) in Chapter IX of the FSPTCA on the marketing of e-cigarette products under the guise of "protecting the children".

If Romney wins, there may be no new FDA regulations for e-cigarettes (as Romney, Ryan and most Republicans have railed against unwarranted regulations), or at least less onerous regulations than what Obama's FDA has promised they'd impose during the past 18 months (as they've continued to misrepresent the scientific evidence and demonize e-cigs).

Obama's FDA has already finalized the "deeming" regulation, and has sent it to the Office of Management and Budget (OMB) for their sign off (which is required before any new federal regulation can be officially proposed).

As such, it appears that Obama's FDA may be trying to slip their regulation through during the presidential transition (should Romney win).

I'm sure the FDA is just THRILLED with the outcome of the election !!!!!!!!!!!!!

 

[Vocalek]

And I am depressed.

I was never looking to see my country "fundamentally transformed."

I liked having a Constitution that every elected official is sworn to protect and defend.
I liked the concept of checks and balances, implemented through separation of powers, to protect the people from dictatorship.

[Separation of powers explained: http://www.usconstitution.net/consttop_sepp.html]

I still like these things, but it seems that too many other citizens don't see the value in them.

The executive branch is out of control, putting costly and cumbersome regulatory schemes into place. Look for prices of electricity to soar, as coal-fired plants close their doors, due to it being either technologically unfeasible or economically unbearable to implement new EPA regulations. Look for that FDA deeming regulation to be put in place before the end of the year. Also look for e-cigarettes as we know them to be fundamentally transformed or to disappear altogether as FDA looks to impose on the e-cigarette industry all the provisions in the Tobacco Act that were written with combustible tobacco cigarettes in mind.

I hope I am wrong about all of the above, because I will take no pleasure in saying, "I told you so." I will only feel great sorrow at what was possible and what was lost.

Executive Orders are replacing laws introduced by, debated on, and passed by both houses of congress, before being signed into law or vetoed. This means that there are elected officials ignoring their oath to uphold and defend the Constitution. This means that the system of checks and balances is fundamentally broken.

I hate the fact that I feel nervous about being attacked for posting these opinions.

 

[martinc]

All I see is a multimillion payoff in taxes to the gov...nice strategy to publish that,one day the gov pockets will depend largely on that