E-Cigarette Sales See "Significant" Growth in June (Photos)

　　Although Nielsen reported a great deal of data in 2016 showing sharp declines in e-cigarette and vapor sales, that trend now appears to be shifting. For the four weeks ending June 18, Nielsen reported double-digit growth in both unit sales and dollar sales for e-cigarettes. During this period, E-CIG dollar sales across all channels rose 12.9% year over year, while unit sales increased 20.4%. Wells Fargo analyst Bonnie Herzog described the figures as “significant” growth.

　　“The gain in distribution for VUSE and Altria’s MarkTen XL led to increases in volume and pricing, while the rise in sales volume was very likely driven by excessive couponing,” Herzog wrote in a research note.

　　Specifically, Reynolds’ VUSE posted a 2.4% increase in dollar share, reaching 35.7% of E-CIG dollar sales, but lost 4% of its retail unit share, bringing it to 40.5% of the category.

　　“Altria should continue to post strong year-over-year earnings per share, driven by the expansion of MarkTen XL. Its dollar share rose 10.3% to 16.3%, while its unit share increased 13.7% to 20.9%,” Cowen Group analyst Vivien Azer said.

　　Aside from VUSE and MarkTen, many leading brands saw slight declines in both dollar sales and unit sales. Nielsen showed that ITG’s blu lost 4.7% in dollar share, falling to 19.3%, while its retail unit share dropped 4.5% to 13.6%. Japan Tobacco International also saw its dollar share decline by 1.5% to 12.2%, though its unit share was relatively flat, slipping just 0.1 point to 8.0%.

　　Among the product segments driving sales in e-cigarettes and vapor products, cartridges led dollar sales growth, up 36% from last year, followed by kits, which grew 5%. Meanwhile, disposable e-cigarettes fell 21%, and e-liquid refills were down 37% year over year.

　　“Overall, e-cigarette pricing continues to trend below year-ago levels, highlighting the challenges in capturing share in the evolving vapor category, particularly with the proliferation of vapor/tank/mods (VTM) and refills, which tend to carry lower retail prices,” Herzog explained.