Big tobacco’s latest buzz is not a regular cigarette, and doesn’t even have tobacco. Rather companies – and smokers – are paying big bucks and turning to technology to satisfy cravings, as the industry’s future hangs in the air.
FOX News Radio’s Bill Vitka reports:
It’s not just people who want to quit smoking who turn to electronic cigarettes, it’s big tobacco. Lorillard is buying a maker of electronic cigarettes, Blu E-Cigs, for $135 million. Lorillard is shopping as the FDA weighs a possible crackdown on mentholated cigarettes, which represent as much as 90% of revenue at the Newport brand maker.
E-cigarettes are no more than a fraction of the $100 billion U.S. tobacco market, but they now account for at least $250 million dollars in annual sales. While the FDA says it plans to regular e-cigarettes – warning they may pose a health danger – the number of Americans who use them has quadrupled in one year.
Bill Vitka, FOX News Radio.