The Decline in Lorillard’s Sales
After purchasing blu Cigs "BluCigs.com" in 2012, it seemed like Lorillard would become a significant Big Tobacco player in the e-cigarette industry. Numbers, however, show a different pattern – it turns out that Lorillard’s blue Cig sales fell by almost 40% in the third quarter of last year.
Experts explain this with the inferiority of Big Tobacco companies' cig-like devices. Vapers have already realized that the only good thing about the blue Cigs is… well, practically, their look. The eGo-style devices and mods are far superior to the weak cigarette-sized vaping devices by Lorillard.
It’s not just the pathetic battery life that makes the blu Cigs the less preferred choice for vaping. In addition, they have sub-par flavors and generally a poorer performance. Many vapers will start with the blue, but it won’t take long to realize the superiority of the eGo devices.
The drop in sales might also be because Altria and Reynold’s American introduced their direct competition of the blu – MarkTen and Vice, respectively. However, although Blu Cigs reported a decline in sales, Lorillard still totaled $38 million from them last year, and their overall taking increased by almost 8.5%. This increase comes mainly from electronic cigarette sales, and the Blu brand is the only one with a sales decline, so the core issue is likely its design.
It is expected that Reynolds American will take over Lorillard (and their debt) in the first half of 2015, paying around $27.4 billion for the company. This could hardly be a smart move, as the problem with the Big Tobacco companies lies far more profound. Cig-a-likes are generally good products for a minimal amount of time. However, people serious about switching will quickly ditch them for a superior device with better performance, like vape pods.