E-Cigarette Brands Brace for FDA Regulation

by Christopher Freeburn | October 17, 2013 10:16 am

E-Cigarette Brands Brace for FDA Regulation

e cigarettes 300x209 E Cigarette Brands Brace for FDA Regulation[1]With sales of electronic cigarettes rising sharply, regulators are mulling the expansion of traditional rules governing tobacco products to cover the devices[2].

That could impede tobacco company efforts to promote e-cigs through sporting events and TV marketing campaigns. If the Food and Drug Administration (FDA) does decide to add e-cigs to its oversight, producers would have to comply with a greater range of regulations regarding their sale, manufacturing and promotion, Bloomberg notes.

Sales of e-cigs have rise three-fold this year, hitting $1.5 billion. The devices, which use a battery-powered coil to heat liquid nicotine, producing a vapor that “smokers” inhale, do not produce smoke and have been touted as safer than traditional cigarettes. With most cigarette-makers either already marketing or currently testing e-cig products, the market for e-cigs is expected to expand dramatically in coming years[3].

That has drawn concerns for anti-tobacco advocates and state agencies, who question the benefits of e-cigs and have called for greater regulation[4].

Tobacco producers are currently preparing to post their quarterly results. Philip Morris International (PM[5]), Reynolds American (RAI[6]), Lorillard (LO[7]) and Altria Group (MO[8]) are all expected to report higher profits[9] during the most recent quarter.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/09/e-cigarettes.jpg
  2. expansion of traditional rules governing tobacco products to cover the devices: http://www.bloomberg.com/news/2013-10-16/e-cigarette-marketing-seen-threatened-by-fda-scrutiny.html
  3. expand dramatically in coming years: http://investorplace.com/2013/07/e-cigarette-sales-are-smoking-hot/
  4. have called for greater regulation: http://investorplace.com/2013/09/e-cigs-e-cigarettes-tobacco-stocks/
  5. PM: http://studio-5.financialcontent.com/investplace/quote?Symbol=PM
  6. RAI: http://studio-5.financialcontent.com/investplace/quote?Symbol=RAI
  7. LO: http://studio-5.financialcontent.com/investplace/quote?Symbol=LO
  8. MO: http://studio-5.financialcontent.com/investplace/quote?Symbol=MO
  9. are all expected to report higher profits: http://investorplace.com/2013/10/tobacco-stocks-earnings-preview/

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