C-stores Could Hit $1B in E-Cigarette Sales This Year

NEW YORK — New Nielsen convenience store data indicates that electronic cigarette sales could hit $1 billion this year, with that figure jumping to $1.7 billion when factoring in online sales.
Leading e-cigarette sales at c-stores is Lorillard Inc.’s blu eCigs brand, according to Bonnie Herzog, managing director of tobacco, beverage and consumer research at Wells Fargo Securities LLC. She cited Nielsennumbers showing that blu captured 39 percent of the dollar share in the convenience channel during the most recent four-week period ended July 6, followed by NJOY with a 30.1-percent share.
Looking at extended all-outlet coverage (XAOC) from New York City-based Nielsen, blu came in first again with a 44.5-percent share. Other leading brands in the XAOC channel include FIN at 20.6 percent, Mistic at 11.7 percent and NJOY at 10.8 percent.
“We believe e-cigarette consumption could surpass traditional cigarettes within the next decade and the combined operating profit pool could generate a CAGR [compounded annual growth rate] of 7 percent over the next decade,” Herzog stated.
While electronic cigarette dollar sales grew 189.6 percent in the four-week period ended July 6, according to Nielsen, total cigarette dollar sales in the U.S. convenience channel grew 1.2 percent over the same timeframe, vs. 1 percent in the last four-week period and 1.3 percent in the prior year.
Unit sales posted their best results – meaning their lowest decline — of the past 12 periods, Herzog said, adding that this was likely driven by moderating net price realization.
“We believe the recent cigarette list price increase of 6 cents per pack is now reflected in the c-store channel. Despite somewhat tepid price realization for retailers per the Nielsen data, we expect net price realization for the manufacturers to accelerate to about 4 percent in [fiscal year] 2013, which should offset volume declines, leading to positive dollar sales,” she explained.
As for individual cigarette brands, all three Big Tobacco companies — the Altria Group Inc. Reynolds American Inc. and Lorillard — saw positive numbers during the period, she added.
http://www.csnews.com/top-story-tobacco-c_stores_could_hit_$1b_in_e_cigarette_sales_this_year_-64164.html

University of Texas at San Diego to Study Health Effects of E-Cigarettes

San Francisco, CA – William Cooke and Donovan Fogt, UTSA kinesiologists, have received a $30,000 seed fund from the University to help investigate the health effects of electronic cigarettes. They will be teaming up with Assistant Professor Caroline Rickards at the University of North Texas to help gather data about the effects of e-cigarettes and the body’s basic physiological health.
e-Cigarettes have been around for about six years, and have been marketed as an alternative to smokers who want to decrease their risk of serious health risks of smoking, but still enjoy the effects of nicotine. The devices have been aggressively marketed to make people believe that there are little-to-no side effects of inhaling pure nicotine, but in reality, very little research has been done to study the effects of inhaling vaporized nicotine.
The scholars will be working under the hypothesis that vaporized nicotine “stimulates the human nervous system in ways that could seriously impact daily living”. They believe that the inhalation of pure nicotine has the potential to increase a person’s resting metabolism, making exercise problematic, just as in smoking traditional cigarettes. They also are hypothesizing that e-cigarettes will prevent the cardiovascular system from properly system from properly regulating arterial pressure.
If the hypothesis is correct, additional research will be needed to help understand the immediate effects of vaporized nicotine, as well as the impact of dosage in each device, and age on the e-cigarette user’s health.
http://www.sbwire.com/press-releases/university-of-texas-at-san-diego-to-study-health-effects-of-e-cigarettes-292135.htm

The electronic cigarette ignites debate

By Michael Crusan – email
Eau Claire (WQOW) – Electronic cigarettes are technically smoke free, but some businesses and health experts are drawing the line to put them out.
This alternative to smoking is receiving mixed reviews in Eau Claire.
“Have the brown filter, the white battery, I mean it looks just like you’re naturally smoking a cigarette and even the end lights up red,” explains regional manager of Eau Claire Tobacco Shop, Jessica Hartkemeyer.
A red light leading restaurant owners and health officials to say stop.
“Electronic cigarettes, to me, is smoking.  It’s the same thing, it’s the same type of scene it is.  In all our restaurants where we have non-smoking areas, it will be non-smoking for electronic cigarettes,” says Eau Claire restaurant owner Lisa Aspenson.
Especially when the federal government isn’t controlling what’s in a cloud of e-cig vapor.
“The FDA has not evaluated it for the content of nicotine or for other dangerous drugs,” says Mayo Clinic Health System Nurse Practitioner, Kim Edson.
“The FDA, I think, is avoiding putting their stamp of approval on this because it’s not necessarily a quit smoking device.  It can be used as a replacement that’s just a little bit cheaper,” says Hartkemeyer.
So what does your average e-cig contain in a puff of vapor?
“USP grade liquid nicotine, kosher certified natural and artificial flavors,” says Hartkemeyer.
Much shorter than the list of ingredients in a cigarette, but still not approved by doctors.
“For the intent of stopping smoking we don’t recommend it because it still promotes the behaviors of smoking,” says Edson.
Because it’s hard to tell if the cigarette is made with paper or plastic.
“When they first came out I did have customers say, ‘Well bars asked me not to use these or restaurants because it gives the impression that we are smoking in the establishment’,” says Hartkemeyer.
“So I think we’ll just stay with the non-smoking trend and maybe be the first to implement it in the Eau Claire area,” says Aspenson.
Instead asking smokers to step outside whether they light or ignite.
Aspenson also owns the Livery in downtown Eau Claire and says they do allow outdoor smoking for tobacco or electronic cigarettes at that location.
Read more or view video:  http://www.wqow.com/story/22960738/2013/07/29/the-electronic-cigarette-ignites-debate

Law banning smoking in restaurants turns 10

 / Featured Stories, Fulton News
For many of us, it seems like a lifetime ago when we were asked if we wanted to be seated at the smoking or non-smoking section in our local restaurant.
For Zachary and Matthew Metott, it was an actual lifetime ago. The Metott boys turn 10 years old this year and have never known a world where smoking was allowed in New York state restaurants. July 24th is the 10th anniversary of the Expanded Clean Indoor Air Act, most commonly known for prohibiting smoking in bars and restaurants.
The 2003 state law banned smoking in almost all workplaces, bars, restaurants, bowling facilities, taverns and bingo halls and protected millions of New Yorkers from daily exposure to second-hand smoke and the illnesses it causes.
When the Metott boys were asked their thoughts on having smoking and non-smoking sections in restaurants Matthew replied, “That’s just weird!” Zachary added “I’d wonder why they were doing that.”
Zachary and Matthew met at Vona’s Restaurant to talk with the Tobacco Free Network of Oswego County about this milestone. Vona’s was one of the first Oswego restaurants to go smoke-free, making the decision before New York even passed the Expanded Clean Indoor Air Act. The boys also had strong opinions on being exposed to smoke in restaurants.
“We wouldn’t want to go there to enjoy time with our family because it would hurt us or make our little sisters sick,” said Zachary.
A recent survey of bars and restaurants in Oswego County revealed that compliance with the law 10 years later is excellent. In fact, there was a 100 percent compliance rate at the time of the unannounced survey. Despite the success of this law and the countless lives that have been saved, smoking remains the leading cause of preventable death and kills more than 25,000 New Yorkers every year.
The U.S. Surgeon General characterizes youth smoking as a pediatric epidemic, and states that the evidence is clear that tobacco marketing causes youth to start smoking, and most start before they reach the age of 18.
“Smoking is still a problem in Oswego County and New York state as whole, particularly among teens,” said Abby Jenkins, Program Coordinator of the Tobacco Free Network of Oswego County. “Zachary and Matthew have never known a time when smoking was allowed in restaurants. Maybe the next generation of 10 year olds will never know a time when they were inundated with tobacco marketing.”
For more information about efforts to reduce smoking and protect youth from tobacco marketing, visit www.tobaccofreenys.org.
http://valleynewsonline.com/blog/2013/07/27/law-banning-smoking-in-restaurants-turns-10/

Cities Struggle to Classify E-Cigs as They Grow in Popularity

By: Joy Lim Nakrin
A growing trend is taking hold in the Twin Cities: electronic cigarettes.
Minnesota’s recent tobacco tax hike seems to have given the business a boost. “Smokeless Smoking” opened its first store in 2009. Now, four years later there are four locations.
Since the new tobacco taxes took effect this month, sales spiked 50 percent, says co-owner Tim Koester. He explains, “Certainly our typical customers are former smokers or people who want to transition off traditional cigarettes.”
E-cigarettes contain vapor with nicotine, not tobacco. Since stores that sell them aren’t tobacco shops, some cities are struggling with how to classify them under city codes.
Though they sell nicotine, the stores are not tobacco shops. Though they feature lounges, they are not food and beverage establishments.
Bloomington City Councilwoman Karen Nordstrom says, “It seems very strange to have this under recreation, but its not going fit anywhere else.”
Smokeless Smoking plans to expand its Bloomington location, which opened in January.
Watch the American Cancer Society weigh in on the smokeless option by clicking here.
http://kstp.com/article/stories/s3110950.shtml

Letter to the Editor: North Dakota should take lesson from Minnesota on cigarette tax

Minnesota just raised its cigarette tax by $1.60 per pack, leaving me in envy of our neighbor’s efforts to help people quit smoking.
High cigarette prices and noticeable price hikes like Minnesota’s recent increase prevent young people from getting hooked and help current smokers to kick the habit. That’s good. One in three who try cigarettes get addicted and a majority of those who smoke want to quit. A high tobacco tax is an effective health policy; kudos to Minnesota’s elected leadership for recognizing that and investing in this prevention strategy.
By contrast, North Dakota ranks as one of the “best” states for cheap tobacco. North Dakota’s tobacco tax is outrageously low at a mere $0.44 per pack — the 46th lowest cigarette tax in the nation. Across the river, Minnesota’s cigarette tax is the sixth highest at $2.83 per pack. Is “cheap tobacco” the policy North Dakota wants for its children? From my perspective as a public health advocate and mom, no. North Dakota needs to take action to significantly increase the price of tobacco here. It’d be the first time since 1993.
I love North Dakota, but not the current price of our cigarettes. In addition to its tobacco tax, sometimes I also envy Minnesota for its trees — when the wind blows and we have few to stop it. But we’re proactive and plant trees for the immediate and long-term benefits they provide. For the same reasons, raise North Dakota’s tobacco tax — and the sooner the better.
Valerie Schoepf,
Bismarck
http://www.thedickinsonpress.com/event/article/id/70212/group/Opinion/
http://bismarcktribune.com/news/opinion/mailbag/envying-sister-state-s-high-tax/article_df913772-ee8a-11e2-ad6c-0019bb2963f4.html
http://www.inforum.com/event/article/id/406373/

Letter: NDQuits wins a commendation

By: Jessie Azure, West Fargo, INFORUM
I would like to commend those with NDQuits on finding a creative way to reach a “tobacco at risk community!”
Clearly, representatives from the North Dakota Policy Council need to sit down and read the 2007 Best Practices manual issued by the CDC on Tobacco Prevention and Control Policy before commenting. Maybe then they’d understand the importance of reaching target populations with education and support.
Their comments make me ask a far more important question: What if the parade had been for an organization raising awareness for mental health (as this is another community with a high rate of tobacco use)? Would Zach Tiggelaar still be compelled to question such actions? I bet he’d agree that we shouldn’t dismiss one community over another; rather, look to find ways to reach all of our citizens, just as the folks at NDQuits did. After all, as Rep. Josh Boschee, D-Fargo, reminds us, the cost of tobacco is far more staggering to treat than prevent.
http://www.inforum.com/event/article/id/406374/

R.I. Governor Chafee vetoes e-cigarette ban for those under 18

BY PHILIP MARCELO, KATHERINE GREGG AND RANDAL EDGAR
PROVIDENCE — Governor Chafee has vetoed legislation prohibiting anyone under the age of 18 from purchasing e-cigarettes and other “vapor products” that heat liquid nicotine into a smokable vapor.
The American Cancer Society, the American Heart Association, the American Lung Association, and other health advocacy groups, had called on Chafee to veto the measure.
They said the bill represented a “stalking horse” for tobacco and e-cigarette companies that want to exempt the growing industry from the regulations and taxes imposed on traditional tobacco-based products.
They also warned that federal regulators are still studying the potential health risks of the relatively new technology .
Introduced by Senate Majority Leader Dominick Ruggerio, D-North Providence, the bill would have defined e-cigarettes and other related products as “vapor products.”
Nine states, including Vermont and New Hampshire, have simply included them in their definition of “tobacco products.”
R.J. Reynolds Tobacco, which is set to roll out its own e-cigarette line, VUSE, later this year, had strongly advocated for the bill and dozens like it in other states.
In his veto message, Chafee said, “The sale of electronic cigarettes to children should be prohibited, but it is counter-productive to prohibit sales to children while simultaneously exempting electronic cigarettes from laws concerning regulation, enforcement, licensing or taxation.
“As a matter of public policy, electronic cigarette laws should mirror tobacco product laws, not circumvent them,” Chafee said.
Other bills vetoed by Chafee on Wednesday would have let municipalities raise taxes on low-income, government-subsidized housing, and increased required public-reporting by the state’s quasi-public agencies.
Chafee did not heed all calls for a veto.
For example, he rejected pleas from the state’s auto insurers to veto a bill telling them when they can — and cannot — declare a damaged vehicle a total loss, that was a priority of the state’s politically connected auto-body shop industry. (Leading the industry’s fight again this year was the sister/law partner of the former senior deputy majority leader in the House.)
Sponsored by Rep. Arthur Corvese, D-North Providence, the new law prohibits an insurer from declaring a motor vehicle a total loss if the cost to restore the vehicle is less than 75 percent of its “fair market value” before it was damaged. The only exception would be if the owner gives the OK to say the vehicle is totaled.
http://www.providencejournal.com/breaking-news/content/20130717-r.i.-governor-chafee-vetoes-e-cigarette-ban-for-those-under-18.ece

Are e-cigarettes healthier?

By 
John Sweet once smoked two packs of cigarettes per day until a chance visit to a Clearwater flea market in early May led him to the latest nicotine alternative.
For $50 he purchased a battery-powered electronic cigarette — a device that comes in many shapes and sizes and in different price ranges.
With the push of a button, the e-cigarette heats a nicotine-infused propylene glycol fluid, turning it into a vapor that’s inhaled. E-cigarette users call the act “vaping,” not smoking.
These e-cigarettes, or e-cigs for short, often look like real cigarettes, but without the lingering smoky odor. Other devices — invented and manufactured in China — look like large ink pens.
“On the spot (after seeing the e-cigarette), I decided to quit,” Sweet said.
Sweet, 44, last week upgraded his cheaper realistic-looking e-cig at Johnny Vapenhiemer E-Cigs, a Paddock Mall kiosk. He said the cheaper e-cig had a short battery life and he wanted something better.
Sweet loves vaping because it is one-fifth the cost of smoking. And despite health warnings, it’s healthier than smoking traditional cigarettes, he said.
In June, the Food and Drug Administration in the Philippines issued an advisory, warning that e-cigs have not been tested and second-hand emissions could be harmful.
“E-cigarettes contain volatile substances, including popylene glycol, flavors and nicotine, and are emitted as (a) mist or aerosol into indoor air,” according to the June 26 advisory.
The advisory stated the FDA in that country cannot exclude adverse health risks from second-hand emission exposure. However, that agency conceded that e-cig devices produce fewer harmful chemicals than conventional cigarettes.
In the United States, the FDA is moving to release for public comment a proposed rule to regulate additional categories of tobacco products, such as e-cigarettes. FDA officials said they cannot comment on the contents of the proposed rule. Official noted in a statement that “further research is needed to assess the potential public health benefits and risks of electronic cigarettes and other novel tobacco products.”
At the e-cig kiosk in Paddock Mall, owner Johnny Mays — who calls himself Johnny Vapor, master vaporologist — defended the world’s fastest-growing tobacco trend.
Mays held a 48-page e-cigarette study commissioned by the Tobacco Vapor Electronic Cigarette Association (TVECA).
He inhaled an e-cig, one of two that comes in a kit with a battery charger and bottle of fluid, called e-juice, for $64.95. Mays carries e-juice in 60-plus flavors, from tobacco to strawberry.
Users squirt a few drops of fluid into a small tank. The battery heats the e-juice to 92 degrees. With a push of a button, users inhale vapor through a mouthpiece.
Mays says the industry is misunderstood and that e-cigs are much safer than traditional cigarettes.
“Cigarettes have thousands of harmful chemicals; e-juice has one chemical,” Mays said as he helped Sweet pick a red e-cigarette kit.
June’s advisory came three years after the agency attempted to block the sale of e-cigarettes all together in the United States. The FDA claimed that an e-cigarette was a drug device and should be regulated as a heavily scrutinized medicine, not a tobacco product.
The federal court ruled e-cigarettes do fall under the FDA’s tobacco regulations. After all, nicotine comes from the leaf and stems of tobacco.
Tom Kiklas, co-founder of TVECA, maintains that e-cigarettes are not being touted as a cessation product, like nicotine lozenges, patches and gum. Therefore, e-cigs can be marketed like any other tobacco product.
The American Lung Association doesn’t buy Kiklas’ claims. Erika Sward, American Lung Association’s vice president of national advocacy, said e-cigs have not been thoroughly studied and no one really knows the chemical content in the e-juice. She also criticized the FDA and the Obama Administration for not moving fast enough in regulating e-cigarettes.
“The American Lung Association is very concerned about the potential health impacts of e-cigarettes,” said Sward, adding another big concern is the product is being marketed to children. “When I see a product with a cotton candy flavor, I don’t think that is for adults.”
Sward said there is also ample proof that e-cigarette companies are marketing the products as a tobacco cessation aide.
Kiklas said manufacturers of cessation products, not the tobacco industry, is leading the charge against e-cigarettes. Most tobacco manufacturers are — or soon will be — joining the e-cigarette market after tobacco sales declined by 5 percent last year.
Kiklas said regular tobacco cigarettes have 7,000 chemicals, 600 of which become carcinogens when ignited. E-cigarettes only have five basic ingredients: nicotine, flavoring, water, glycerol and propylene glycol — less than one half of 1 percent of the harmful chemicals, he said. Propylene glycol has caused concern among e-cig opponents because it is an ingredient in anti-freeze. Kiklas said the ingredient, which has long been approved by the FDA, is in many products, including asthma inhalers and food since the 1930s.
Health officials said since the product is not regulated — or even properly studied — then who knows officially what e-juice contains from one manufacturer to another. The Florida Department of Health’s Tobacco Free Florida agency stated it “is wary of any perceived benefits.” The agency noted there is no credible medical or scientific research to support the safety of e-cigs.
“Preliminary research from the FDA revealed that some e-cigarettes contain toxic substances and carcinogens, which are known to cause cancer,” the state health department noted.
The group Americans for Nonsmoker’ Rights (ANR) cited the Indoor Air journal study. The study showed nicotine causes the formation of carcinogens — including formaldehyde — when exhaled indoors, and could remain on surfaces for weeks. Users could then absorb the carcinogens.
“The authors (of the study) concluded the e-cigarettes are a new source of chemical and aerosol exposure and their potential impact is a concern that should be investigated,” the statement noted.
ANR’s immediate concern is the use of e-cigs at smokefree locations, like the workplaces and restaurants.
Evelyn James, health education specialist with the Florida Department of Health in Marion County (once called the Marion County Health Department), said e-cigarettes have not been studied.
James urged potential users not to “replace one product that has been proven to be bad for you” for another that has not even been tested.
The FDA’s June advisory comes as the popularity of e-cigarettes is starting to gain worldwide momentum.
E-cigarettes is a $500 million industry, a minute share of the annual $80 billion U.S. tobacco market. The e-cigarette market has grown globally by 30 percent in the past three consecutive years.
Marion County resident Jan Spagnol, an opiate user who has been clean for one year, said during her recovery, she has relied heavily on cigarettes. Last week, she purchased an e-cig kit from Mays to ratchet down her nicotine intake.
E-juice comes in different strengths, ranging from 24 milligrams of nicotine per milliliter down to zero. One 12 milliliter bottle, which costs $8.99 at the Paddock Mall kiosk, will last a one-pack-per-day light cigarette smoker about two weeks.
The e-cigarette device itself can be reused. The consumer will also have to buy a replacement tank for $6.99 about once a month, depending on usage.
In the end, a one-pack-per-day light cigarette smoker will spend about $25 per month vaporing, compared to about $150 per month smoking.
“I wanted a way to wean myself off cigarettes,” she said, adding that nicotine patches was one option.
She decided against patches because e-cigarettes allow her to still inhale and exhale, retaining that oral fixation associated with cigarettes.
“After I quit smoking, I really will be clean and sober,” she noted.
http://www.ocala.com/article/20130717/ARTICLES/130719745/-1/entertainment02?p=5&tc=pg

Tobacco tax: Myth vs. facts

To the editor:
We were disappointed to read the opinions expressed in the July 6 editorial. We would like to provide your readers with accurate information based on fact (references readily available).
The following points address several myths presented by Mr. Peterson:
Myth: The new tobacco tax will help pay for the Vikings Stadium. Fact: The revenue from the tobacco tax will go into the general fund. Some of the money from a one-time tax on cigarette inventory in stores may go to the stadium.
Myth: Raising the tobacco tax is unfair to smokers. Fact: The cost of treating tobacco-related disease far exceeds the amount of tobacco tax collected by smokers. Every man, woman and child in Minnesota pays $554 in excess health care costs due to smoking whether they smoke or not.
Myth: Smokers won’t quit even if the price increases. Fact: Research shows that a $1.60 per pack tax increase will help more than 36,600 current Minnesota smokers quit. In our state, we are fortunate that all smokers have access to free cessation services through QUITPLAN. In addition, low-income smokers suffer disproportionately from the health effects of smoking, and are 70 percent more responsive to price increases.
Myth: Tobacco tax revenue isn’t reliable. Fact: Every state that has significantly raised its tobacco tax has seen an increase in state revenue and health benefits for residents.
The new tax on cigarettes and other tobacco products is estimated to generate approximately $400 million over the next two years and will save our state more than $1.65 billion in long-term health care costs.
Myth: Raising the tobacco tax will force people over the border. Fact: In most places, the price difference isn’t substantial enough to cause people to cross the border to buy cigarettes. Some may cross occasionally, but the number of individuals who do this is statistically very low. Most smokers will continue to buy their cigarettes in Minnesota.
Research has consistently shown that raising the price of tobacco is one of the most effective ways to help smokers quit and prevent kids from starting. Saving Minnesota lives and our kids from a lifetime of addiction is “fair” and a great idea in our book (of facts).
Southwest Community Health Improvement Program (C.H.I.P) members
Paula Bloemendaal
Val Dallenbach
Judy Pitzl
Kris Wegner
http://www.marshallindependent.com/page/content.detail/id/540688/Tobacco-tax–Myth-vs–facts.html?nav=5072