Now that e-cigarettes have hit the big time with Lorillard’s acquisition of blu Cigs, financial institutions are starting to take note. Both UBS and Wells Fargo have issued investment reports on the e-cigarette industry. The reports are similar and draw very similar conclusions.
- The e-cigarette industry has grown rapidly
- The FDA is a wild card because it has yet to finalize regulations
- The industry is very disjointed and consolidation is highly likely
- The convenience store industry is the battleground for e-cigarette adoption
- Ruyan’s ecig patent may prove to be a thorn in the side of e-cigarette companies
If you’re a fan of stats and charts and things, you might want to download these reports. If you’re at all interested in the industry, these are a good read as well. Neither of these reports talks about the aftermarket or advanced model segment, they pretty much focus entirely on the big box, name brand e-cigarette companies.
UBS Report (PDF)
Wells Fargo Report (PDF)