22nd Century Group (XXII)

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The popularity of electronic cigarettes (e-cigarettes) has exploded internationally, particularly in France, where smoking has long been part of the social fabric and culture. Both longtime and new smokers have gravitated toward this innovative device-drug combination, which costs significantly less than traditional cigarettes and benefits from a smokeless and odorless technology. Many claim that e-cigarettes’ noncarcinogenic liquid-vapor-based formula demonstrates a health profile superior to that of conventional cigarettes.

However, product characteristics vary significantly, owing to the market’s rapid and unregulated development, and medical experts express uncertainty about long-term health implications.

E-cigarettes: Lighting Up in France and Beyond » Knowledge@Wharton

Remains to be seen how much of a competitive threat e-cigarettes pose, and there is an upside as well:

The rapid rise of the global e-cigarette market — which registered global sales CAGR (compound annual growth rate) of 57% between 2010 and 2012 and is expected to be worth around US$2 billion by the end of 2013 — has eaten into the broader tobacco market and prompted calls for government regulation.

It shows how a market can rapidly grow once less damaging products catch on. Enter XXII's low nicotine cigarettes..