Lorillard Sees Major Drop in Ecig Sales During Late 2014
The electronic cigarette industry is rapidly evolving and companies that don’t change and adapt are quickly left behind. Perhaps that is the reason for the recent decline in sales for Lorillard’s Blu E-cig brand. Over the past two quarters, Blu E-cig sales have fallen by almost 40 percent. Meanwhile, competitors like Reynolds American and Altria are launching their own electronic cigarette brands that are so far showing a lot of promise for boosting revenues.
Investment analysts speculate that Lorillard’s sudden fall is mostly due to “the shift in consumer preference from smaller e-cigarettes to tank devices, which are typically larger and have longer-lasting batteries and a puff that is more similar to a combustible cigarette.”
So far, Lorillard has given no indication that it will venture into the tank style devices. The only major change to their line was the introduction of a cherry flavored disposable ecig last year. Lorillard has been part of the ecig market since it purchased Blu Ecigs in 2012 for $135 million. At that point, Blu was one of the most popular and recognizable brands on the market. After the buy out, Lorillard immediately sunk millions of dollars into marketing and advertising and now you can find the cigalikes in most convenience stores in the United States. But even with the wide availability, Blu Ecigs only brought in around $38 million during the third quarter of 2014.
With each passing month, the popularity of cigalikes devices like Blu seems to lessen. More experienced vapers tend to prefer the tank devices or even small mods that offer more powerful vapor and better options for customization with e-liquids. Another thing that could potentially be causing Blu to stumble is the association with Lorillard. Many vapers are skeptical of big tobacco companies and are not too easily convinced to jump right back into bed with them after just escaping a tobacco addiction by switching to electronic cigarettes.
While the future doesn’t look too bright for Blu Ecigs, there is still time for this vaping brand to bounce back. Reynolds American will take over Lorillard soon and that could eventually lead to a complete revamping of the Blu line.
Do you think there is hope for Blu Ecigs to bounce back from their recent decline? Are cigalikes destined to disappear in the emerging world of tank devices?