Reynolds Expands 4 Vuse Flavorings Nationwide

Source from:  Winston-Salem (NC) Journal 10/15/2015

R.J. Reynolds Vapor Co. has gone national with four new flavors for Vuse, the nation's top-selling electronic cigarette.

The company said Wednesday that crema, chai, berry and mint have been expanded beyond test markets in Colorado and Utah.

That raises the number of Vuse flavors to six, counting original and menthol that debuted nationally in June 2014. Vuse is available in more than 100,000 retail outlets nationwide.

Vuse contains a vapor delivery processor - a digital microprocessor that communicates up to 2,000 times a second with a smart memory chip - to closely monitor and regulate each puff.

Reynolds describes crema has having a creamy flavor with a hint of tobacco taste, while berry is a mixed blend of berries and chai is a blend of aromatic tea.

"Adult smokers have told us they are interested in having flavors other than, and in addition to, traditional tobacco flavors, as this might help them ultimately consider switching to a smoke-free tobacco alternative like Vuse," Reynolds spokesman Jacob McConnico said.

Vuse had a 34.7　percent market share on Oct. 3 as measured by Nielsen for all distribution channels for e-cigs. Nielsen data focuses primarily on convenience-store sales. Data includes vaporizers, or open vapor products, but those are more frequently bought at vape shops and tobacco outlet stores.

Susan Cameron, chief executive and president of Reynolds American Inc., has said the company is "very pleased with (Vuse's) success to date."

Reynolds has not created a separate reporting line for Vuse revenue, including it within its "all other" category, which had fiscal 2014 sales of $263 million, up 37.7 percent from fiscal 2013.

On Sept. 30, Reynolds said Vuse is being exclusively produced at its 2-million-square-foot plant in Tobaccoville. Reynolds committed in May 2014 to adding 200 jobs in Tobaccoville as part of a four-year ramp-up of Vuse production.

The national expansion of the four Vuse flavors comes as the latest federal study on flavored tobacco products released Oct. 1 repeated concerns that middle- and high-school students are increasing use.

However, some anti-smoking advocates say the study's impact is limited because it doesn't specify which flavors are raising concerns besides menthol, which has been a consideration for additional regulations, if not banning, for years.

There are hundreds of flavorings available in the liquid capsules for vaporizers, including fruit and candy.

Some anti-tobacco advocates are trying to link flavorings available mostly in vapor liquid as a concern for all tobacco products.

"While a 2009 federal law banned sweet-flavored cigarettes, tobacco companies have introduced cheap cigars in a rainbow of youth-friendly flavors from watermelon to chocolate, and e-cigarettes are now available in gummy bear, cotton candy and even 'unicorn puke, '" said Matt Myers, president of the Campaign for Tobacco-Free Kids.

Stephen Pope, managing director of Spotlight Ideas in London, said, "it would seem that the only individuals that will criticize an expansion of Vuse flavors are those that would have found the very idea of an e-cigarette as abhorrent. E-cigs are here and will stay, even they have to undergo minor modifications over time. If they can wean smokers off tobacco, or keep new customers on vapor as against real smoking, then they need to be applauded."

Pope said the new Vuse flavors "are simply widening the appeal, broadening the base so as to diversify who might be attracted to Vuse as against another product in the market."

"Get ready for studies that will delve into what flavors are most addictive, or score highest in the first time and then repeat use tables." Enditem