CDC Ads Take Aim At E-Cigs

March 27, 2015
Csdecisions
New CDC ads, which are set to begin airing Monday, March 30, depict warnings from former smokers and, for the first time ever, former e-cig users/vapers, which the CDC (Center for Disease Control and Prevention) believes is warranted given its view that many vapers continue to smoke combustible cigarettes, too, according to a report by Wells Fargo Securities LLC.
The CDC cited a 2014 study from the Nicotine & Tobacco Research publication that estimates 75% of e-cigarette users continue to smoke combustible cigs, or ‘dual use.’
“Whether or not e-cig use is more or less harmful than combustible cigs remains a hotly contested issue, though many studies suggest that e-cigs can be less harmful than combustibles. Further, many public health experts do believe in the much lower relative risk of e-cigs vs combustible cigs. E-cigs remain more or less unregulated as we await the FDA’s final regulatory proposal from the FDA after the initial deeming regs on e-cigs were proposed in April 2014,” noted Bonnie Herzog, managing director, beverage, tobacco and convenience research.
“Unfortunately, there continues to be lack of vapor industry and public health alignment, which is in turn driving worsening public perception of the vapor category. We believe leadership is needed—both at the FDA and in the public health community—to stem the increasingly negative messaging about the e-cig/vapor category given the potential for e-cigs/vapor to positively impact public health— though we acknowledge more studies are needed,” Herzog said.
Wells Fargo continues to see “vast opportunity” for vapor long term and continue to believe consumption of vapor and other non-combustibles could surpass consumption of combustible cigs in the next decade (by 2025).
“While we estimate the industry will continue to grow robustly in 2015 ( approximately 40% topline growth), reaching retail sales of $3.5 billion, we would be remiss if we didn’t acknowledge the increased uncertainty we have observed among investors, our retailer/industry contacts, and consumers over the past 6-12 months. We believe this unfortunate trend is being driven by: (1) mixed messages from the media; (2) lack of FDA regulation and need for leadership role; and (3) lack of vapor industry or public health alignment, which are in turn driving worsening public perception of the vapor category. This is exacerbated by the fact that it is difficult for the industry to defend itself or make any modified risk claims (that their products could be less harmful than combustible cigs),” Herzog said.
“We remain bullish long term and continue to believe technological innovation is crucial and that Big Tobacco will be pivotal in shaping the vapor industry,” she added.