When the Smoke Vapor Clears, E-Cigs Prove to be a Good Buy

Financial reports from the Wall Street Journal indicate that the industry made $500 million in 2012, while Wells Fargo Securities forecast that sales will top $1 billion in 2013. Although the market for ego batteries is still relatively small when compared to overall cigarette sales, usage of the smoking alternative is growing at exceptional rates. The Center for Disease Control and Prevention reported in 2011 that over 21 percent of U.S. smoking population has tried e-cigs. Therefore, investors are expecting a boom in in the fledging sect of the cigarette industry.

Investors have a few options when considering profiting from e-cigs. Traditional tobacco stocks from the three major tobacco manufacturers present solid foundations for investors. Altria, Lorillard and Reynolds American are making strides to re-market themselves in the electronic cigarette industry. Lorillard’s blu e-cig brand eclipsed $30 million in sales last year. Meanwhile, Reynolds American is developing a digital cigarette that uses computer chips to resemble smoking. Altria’s plans will be disclosed later this year.CXSDdsf44

Vapor Corp has made good use of the e-cig non-regulation period by aggressively marketing its product as a health option to conventional tobacco cigarettes. The young corporation has expanded quickly and is making strides to continue its growth. In 2009, Vapor Corp posted revenues amounting to $800K. In 2012, revenue topped $16M, which equates to a 50% growth rate every year. As a holder of exclusive patents, Vapor Corp has a unique stake in the ego e cig market. The corporation has been in the industry since 2009, affording its investor with deep insights into industry trends, growth, innovation, distribution, customer awareness and marketing.

Retailers are posting consistent gross profits between 30-40% greater than traditional cigarettes. Consequently, Vapor Corp. market share has increased to 16%, making it the largest publicly-traded e-cig company in America. Kevin Frija, Vapor Corp’s president, remarked on the company’s strategic advantage: “When you factor in that 45 million consumers smoke, and 2.5 million consumers [use] electronic cigarettes, we have an appeal to an established market.”

Currently, Vapor Corp is increasing its customer base due to its user friendly ego cigarette design and customer rewards program. The combination of the rewards program and its pricing index allows customers to save up to $2000 when choosing Vapor Corp e-cigs over conventional cigarettes. The company has thus positioned itself as a cheaper and healthier option for smokers.

It would be the holy grail for Big Tobacco. For decades, tobacco companies have been trying to create a "safe" substitute for cigarettes.Since strong evidence emerged linking smoking to lung cancer in the '60s – though doctors had suspected the link since much earlier – Big Tobacco has been scrambling to develop a non-toxic substitute as cigarette sales eventually began to drop.