LOGIC Technology CEO Eli Alelov discuss the possible impact of government regulations on electronic cigarettes on Fox News.
By John Lofstock, Editor
Hailed by many as an emerging threat to the tobacco cigarette industry, electronic cigarettes have provided smokers with an alternative to traditional tobacco-based smoking. These battery-operated devices simulate the experience of traditional cigarette smoking by supplying the user with a nicotine delivery system, the appearance of smoke upon exhalation and the hand to mouth familiarity of smoking, while remaining free of the many harmful toxins found in traditional tobacco products.
Click to watch Eli Alelov discuss potential FDA legislation of e-cigarettes.
For 2012, according to Wells Fargo, e-cigarette sales generated roughly $300 million at retail. But that number is expected to grow exponentially—developing into a $1 billion category as early as 2013 and offering gross margins comparable to traditional cigarettes, within a decade. While Wells Fargo’s figures didn’t differentiate between sales of disposable and rechargable e-cigarettes, one thing is for sure: the opportunity for new sales is boundless.
“It’s a fairly new category, and that’s what I find so exciting,” said Bonnie Herzog, senior market analyst at Wells Fargo. “I’m making some pretty big predictions. I think it’s possible that consumption of e-cigarettes could surpass that of traditional cigarettes within the next decade.”
LOGIC Technology CEO Eli Alelov discussed the possible impact of government regulations on electronic cigarettes on Fox News. View the video at: http://fxn.ws/16QLhIr