Published on August 23rd, 2013 | by Trick6
Online Sales Ban Could Be Boon for B&Ms
Richard Craver of the Winston-Salem journal looks at the FDA’s possible move to ban the online sale of electronic cigarettes, and the business ramifications.
His conclusions: that such a ban could actually increase sales at brick-and-mortar stores. However, as good as that news might be, the bulk of those sales would probably go to big players such as NJOY, as well as Blu and other Big Tobacco-owned companies, who already have well-established presences in many of the places already selling e-cigarettes in stores.
“The real winners here will be Big Tobacco, and the losers will be small e-cigarette marketers and desperate smokers.”
-Dr. Gilbert Ross, American Council on Science and Health
The downside, of course, would be that the wide variety of online retailers which vanish, taking with them the wide variety of choice, convenience, pricing options, and nearly limitless hardware variety we enjoy today.
Dr. Gilbert Ross of the American Council on Science and Health is quoted in the article, wondering why such a move would be necessary. “There is no evidence whatsoever that significant numbers of kids are interested in using e-cigarettes,” Ross says. “No one has been harmed by e-cigarettes.”
Still, regardless of the lack of any proven health risks, the day may soon come when our favorite vendors may be gone for good. Market analysts see it as a very real possibility, with oft-quoted Wells Fargo analyst Bonnie Herzog noting “[Wells Fargo has] long been saying that we expect tight regulations of e-cigs and that we wouldn’t be surprised if an online ban was eventually enacted.”