As E-Cig Sales Slide for First Time, Tobacco Pins Hopes on Marketing


E-cigs have hit a wall.

After at least five years of steady growth, sales of the U.S. tobacco industry’s most-hyped product since menthol fell for the first time in May and June. That’s potentially bad news for an industry struggling to offset falling sales of traditional smokes. It also presents a challenge to Reynolds American Inc., which agreed to sell the popular Blu e-cig brand as part of its proposed acquisition of Lorillard. The newly merged company would be left to rely on Vuse, an e-cig line created by Reynolds that’s only now being widely distributed.

After betting on sleek disposable electronic cigarettes, the industry is also grappling with rising competition from generic vaporizers that can be refilled with nicotine liquid of many flavors.

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