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What are Nicotine salts? What is the craze about Nic Salt?

What are Nicotine salts? What is the craze about Nic Salt?

For the individuals who are keen on becoming familiar with salt nicotine and what it can accomplish for you, you’re in the perfect spot. Things being what they are, what’s the distinction between salt nicotine and what individuals are vaping now?

Many people know about the freebase nicotine found in most e-juices available today. This clarifies why nicsalts are not all that notable. Thus, in the initial segment of this article, I will carry you to speed and explain to some key inquiries including what Nicotine salts are, the means by which they are diverse to freebase nicotine in most e-juice and whether you should give them a shot.

Nicsalts presented

I’m certain you saw that I utilized the name Nicotine Salts rather than Nicsalts. Nicsalts is a truncation for Nicotine Salts and quickly put, Nicotine Salts exude from tobacco leaves simply like common freebase nicotine which is actually the main similitude between the two.

The greatest contrast between Nicotine Salts and Nicotine is that while Nicotine in tobacco is absolutely only nicotine with no extra mixes, Nicotine salts contain both Nicotine and other extra natural mixes. These mixes can contrast contingent upon the medications of the particular tobacco leaves during handling however with everything taken into account, paying little heed to the extra mixes in the salts, the last particle is increasingly steady.

Nicsalts and E-juice. How it works

Like I said in the initial section, Nicsalts have been accepting a great deal of positive attention. Sometimes Nicsalts are being alluded to as the eventual fate of vaping e-juices. The motivation behind why nicsalts are being alluded to as the eventual fate of vaping originates from tests done by Pax Labs through their leader item – the JUUL vaporizer, where they reasoned that Nicotine salts are in reality preferable and increasingly proficient over the as freebase nicotine found in most e-fluids.

To create Nicotine Salts in e-liquid, Benzoic acid is blended in with the e-fluid so as to help with controlling and managing the particular measure of Nicsalt framed in the subsequent e-juice. Likewise, at vaping temperatures, the nearness of benzoic acid in e-juice would bring about better and increasingly productive assimilation of Nicotine by the body.

Another motivation behind why benzoic acid is so viable in the arrangement and guideline of e-salts in e-juice is that it has a general impact especially on the pH of the juice itself. At the point when the pH is higher (essential level) more freebase nicotine is created which isn’t what we would require. In this way, having benzoic acid in the e-fume brings down the pH of the e-juice making it less brutal to vape.

Basically, when we state, e-juice produced using nicsalts is less unforgiving to vape, we are just saying that fume delivered by Nicsalts tastes smoother and is assimilated quicker by the body. Also, something else about Nicsalts is while vaping them, you will get a moment nicotine fix.

The advantages of Nicsalts

I’ve been stating nicsalts are incredible and certainly worth an attempt, however for what reason would they say they are so extraordinary and what are the advantages that make them unique in relation to freebase nicotine or some other options?

  1. You’ll get more nicotine

As I stated, the primary fixing utilized in e-juice utilized for shaping nicsalts is benzoic acid. What this acid does when combined with the correct type of vaporizer is that it creates progressively stable nicotine conveyance, which implies you will get more nicotine to your blood in a shorter timeframe, in this way upgrading your entire vaping experience.

  1. Has a more extended time span of usability.

The lower unpredictability in nicsalt based e-juice implies nicsalts are far increasingly steady when contrasted with freebase nicotine. This thusly implies e-juice dependent on nicsalts has the ability to last longer away without being debased.

  1. Works with most more current e-liquid Vaporizers

With some e-juices, you’ll need an incredible gadget on the off chance that you are to have an extraordinary vaping experience, this isn’t the situation when utilizing e-juice produced using Nicotine Salts. Nicsalts are exceptionally proficient at creating fume and conveying nicotine which clarifies why they go well most gadgets, paying little heed to the gadget’s capacity.

Another advantage of Nicotine salts radiates from their security. I had said over that they are less brutal which implies you won’t get a throat consume while vaping e-juice produced using them. They are likewise less helpless to oxidation which goes far in diminishing the dangers related to the procedure.

The most effective method to vape Nicsalts

One thing to note about Nicsalts is that they have been answerable for the presentation of Nicsalts just vaporizers. The e-fluid produced using Nicotine salts is ideal for use in low force gadgets like the Sourin Air and Artery Pal. These 2 gadgets are perfect for vaping nicotine salts essentially on the grounds that they have a low force yield which is ideal and perfect for nicsalts.

Security of Nicsalts

In finishing up this article, it’s basic that I talk about the well being of Nicsalts in light of the fact that to a few, that may be a worry.

In spite of the fact that nicotine salts initially structure and take the presence of some other salts, they are viewed as safe for vaping and they will have a similar impact as that of some other type of nicotine.

All things considered, vaping nicotine salts is a vastly improved and more secure option in contrast to smoking which accompanies the additional bit of leeway of getting more nicotine to your blood in a shorter time frame without the destructive symptoms related with smoking cigarettes.

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Things to do in San Antonio

Things to do in San Antonio

This city of San Antonio has a lot to offer to its visitors and their kids. Finding the perfect short term rental in San Antonio close the best attractions is very easy and can be done online.

San Antonio has developed and its attractions have extended to incorporate new neighborhoods and social and authentic encounters, any semblance of which don’t exist in the remainder of Texas. Regardless of whether you’re visiting San Antonio for an end of the week or more, you’ll need to look at all the best coffee shops, restaurants, attractions and even visit the local Vape shops and CBD shops near you. Discover what San Antonio has to offer for your family and kids.

1. Natural Bridge Caverns
Like on the Discovery Tour, where you’ll see massive, otherworldly formations formed by single drops of water and the slow passage of time. Or, explore our Hidden Passages Tour, where shadows dance over delicate formations and mystery awaits in every shadow. Take to the skies high above Texas, as you ascend the Canopy Challenge, or for a true test, try tackling one of our adventure tours. Experience a sense of discovery finding your way through our AMAZEn’ Ranch Roundup, a 5,000 square foot outdoor maze…read more

2. Alamo San Antonio
The Alamo San Antonio is also known as The Alamo Mission. It was founded in the 18th century and was originally known as Misión San Antonio de Valero. The Roman Catholic mission is now part of the San Antonio Missions World Heritage Site.

The site is well known for its historical significance as the Battle of the Alamo was fought here in 1836. The mission traces its history back to the 18th century when the Spanish government established it…read more

3. River Walk
The San Antonio River Walk is a tourist destination, but it’s a tourist destination for a reason—it’s a beautiful place to while away an hour, an afternoon, or a whole day. Take in the sights, grab a bite to eat, and just enjoy the waterfront. Also known as el Paseo del Rio, the San Antonio River Walk area is an area of town defined by the San Antonio River lined with shops, restaurants, picturesque urban gardens, and many points of interest…read more

4. SeaWorld San Antonio
Part aquarium, part thrill-packed theme park, SeaWorld San Antonio lets visitors get closer than ever to tons of marine life, including dolphins, penguins, and polar bears, get splashed by killer whales, and then get an adrenaline rush reaching speeds of up to 50-miles per hour on sea-themed themed thrill rides.

Adrenaline-seekers will want to map their day at SeaWorld around the many thrill rides, like the fast-moving The Great White® ride featuring 360-degree flips and corkscrews, or The Steel Eel’s 15-story vertical drop and camelbacks that give you a feeling of weightlessness…read more

5. The SA Botanical Garden
The San Antonio Botanical Garden welcomes guests to colorful floral displays, true-to-Texas native areas, and futuristic glass pyramids filled with exotic plants from around the world. A recent eight-acre expansion includes a new entrance with additional (free) parking, the Mays Family Display Garden, a 34-bed culinary garden, an outdoor CHEF Teaching Kitchen, and a Family Adventure Garden. Take a break from strolling the 38 acre Garden to enjoy coffee, brunch, or spirits at Rosella at the Garden in the historic Sullivan Carriage House or grab a quick snack in the Garden Gift Shop…read more

6. Six Flags Fiesta Texas
Six Flags Fiesta Texas is one of the largest amusement parks in the country and offers dozens of thrill rides, shows, and activities. Fiesta Texas spans over 200 acres and features famous rides such as Scream, the Iron Rattler, Goliath, and Road Runner Express. Have a great time and experience the rush of Six Flags Fiesta Texas.

7. San Antonio Zoo
San Antonio Zoo is committed to securing a future for wildlife. Through its passion and expertise in animal care, conservation, and education, the zoo’s mission is to inspire its community to love, engage with, act for and protect animals and the places they live. The zoo welcomes more than a million visitors each year and is open year-round. San Antonio Zoo is accredited by the Association of Zoos and Aquariums, the Zoological Association of America, and Humane Certified by American Humane.

 

7. Majestic Theatre
Located in the heart of downtown San Antonio, Texas, the Majestic Theatre was built in 1929 and was designed in a Spanish Mediterranean style by John Eberson for Karl Hoblitzelle’s Interstate Theatres.

The Majestic Theatre is an example of Ambassador Theatre Group’s ability to work within public, private partnerships — in this case the City of San Antonio as owner of the theatre, and Las Casas Foundation, a local non-profit organization, in a successful effort to turn the historic movie theatre into a landmark, modern performing arts facility…read more

8. Natural Bridge Wildlife Ranch
The Natural Bridge Wildlife Ranch – is one of Texas’ most recognized family entertainment attractions. Meander through 450 acres of rolling hills, creek beds, and magnificent live oak trees, and witness the behavior of over 500 animals from 40 exotic, native and endangered animal species worldwide.

Get your safari hat, and join us for an adventure of a lifetime! African Safari, Texas-Style!

9. San Antonio Museum of Art
A visit to the San Antonio Museum of Art (SAMA) takes you around the world and through five thousand years of art in a complex of buildings that once housed the Lone Star Brewery.

SAMA is renowned for the most comprehensive ancient Greek, Roman, and Egyptian art collection in the southern United States…read more

10. The Shops at La Cantera
The Shops At La Cantera is a gorgeous up scale shopping venue combined with great ‘hill country’ charm and a great opportunity for the family who want to spend a little – or a lot! – of time shopping in a pretty location.

The 1,300,000 sq ft center offers shops and stores for every age and is easy to get around, with maps, places to relax and refresh from the sun in the shaded outdoor seating areas, (or heated areas in the winter months), as well as clean facilities and a play area for your kids too.

11. Vape Shops In San AntonioSmoke To Live
With over 15 locations in San Antonio, Smoke To Live is a premier shopping destination for many residents and tourists. Smoke To Live offers an industry-leading selection of the most advanced electronic cigarettes with a line of e-cigarette accessories which help you to make a successful switch from tobacco to electronic cigarettes. Unlike any other company, Smoke To live offers a lifetime warranty on our products to ensure your satisfaction. Visit one of our 15 vape shops in San Antonio 

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It is official, Vaping illness points to vitamin E oil as a cause

It is official, Vaping illness points to vitamin E oil as a cause

US health authorities confirm the previous reports that evaporative cartridges diluted with vitamin E acetate are the cause of the mysterious “evaporator disease” that has already killed 39 people, not cannabis or THC.

Vitamin E-based Honey Cut (Honey Cut) is sold online and is specifically marketed for cannabis oil cartridge dilution

Samples of lung fluids taken from 29 patients in the mysterious disease that attacked vaporisation consumers in 10 U.S. states all contained the same chemical, “Vitamin E Acetate,” according to an official statement released by the American Center for Disease Control and Prevention (CDC) .

The CDC announced the new disclosure yesterday (8.9), and for him is a breakthrough in the mysterious ‘Mars epidemic’ investigation that has plagued consumers who have purchased cannabis evaporative cartridges in the black market. At least 2,051 such cases have been identified in the United States in recent months, and the death toll is 39 people.

The chemical in question, vitamin E acetate, began selling in the past year as a dedicated diluent for illegal evaporation cartridges due to its thick texture, which allows for the depletion of cannabis extraction without making it more liquid.

Consumers, who rely on the degree of closeness of cannabis extraction in the cartridge as an estimate of its purity, since the thicker the material is considered to be of higher quality, do not notice at the time of purchase that it is a diluted product.

Vitamin Island has already been identified by health authorities in some US states at the end of September as the possible cause of the epidemic after it was found in high concentrations in the patients’ evaporation cartridges.

This conclusion from the local authorities is now officially endorsed as well by the federal CDC investigation, after he has analyzed the samples taken from patients’ lungs and found vitamin E in all of them.

Lab Test Results of Valid Evaporative Cartridges and Illegal Evaporative Cartridges conducted by NBC News

 

“Vitamin E acetate usually does no harm when consumed orally as a dietary supplement or when applied to the skin. However, previous research suggests that when inhaled, vitamin E acetate may interfere with lung function, ”the CDC website states.

Experts explain that when vitamin E undergoes heating in the vaporizer, it becomes a kind of sticky tar or ‘grease’. As you can imagine, inhaling these ‘greasy’ vapors can cause serious harm to health, though researchers are still trying to figure out the exact mechanism by which the lung damage is done.

The CDC searched for additional hazardous substances in samples taken from patients’ lungs and was unable to find any other cause of concern other than vitamin E.

This breakthrough does not necessarily mean that the investigation has come to an end, or that vitamin E acetate is the sole cause of lung disease. It is estimated that there may be other dangerous chemicals in the illegal evaporation products that have caused some of the morbidity, which is why the CDC’s investigative actions in collaboration with the US Food and Drug Administration (FDA) are continuing.

Laboratory tests conducted by NBC News as part of a September investigation found, in addition to vitamin E, also dangerous pesticides in 10 of 10 illegal vaporization cartridges tested.

Amongst all the illegal cartridges tested was the fungicidal product Myclobutanil, part of which becomes cyanide at evaporation. Pesticides and fungicides were also found in Boscalid, Propiconzol, Tboconzol, Triploxystrobin and Metlaxil, in addition to the insecticides Chlorphenpyr, Etoxazole, Malethion, Fipronyl and Pipronabiluric Chloroturicuricuricuricuricuricuricuricuricuricurethane. Almost all of these cartridges also contained a high concentration of Vitamin E and, accordingly, contained much less THC than was listed on the packaging.

By comparison, laboratory tests conducted for legal evaporative cartridges sold in a supervised market and authorized stores found no pesticides or vitamin E at all. The vaporizing cartridges in the legal market are under strict scrutiny and supervision so that they are unlikely to be hazardous, but the CDC’s recommendation is to completely avoid using cannabis vaporizing cartridges until the investigation is complete.

It should be noted that the medical cannabis oils produced for patients in Israel also contain vitamin E, which helps in the firming of the oil, but as mentioned above, this oil is intended for use in swallowing or sublingual absorption, rather than inhalation, smoking or evaporation. According to the Israeli Ministry of Health, a warning recently issued that the use of inhaled cannabis oils is prohibited.

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Causes of lung disease have been revealed

e cigarette death

Some of the causes of lung disease of e-cigarette smokers have been revealed

US health authorities have revealed some counterfeit e-cigarette brand names that may be the cause of the death of six people. These are THC (marijuana active ingredient) from illegal manufacturers.

Several marijuana products have been identified as potential causes of the mysterious lung disease epidemic that was discovered among some 800 people who used vaporizers and e-cigarettes. US health authorities have announced that the products include THC (marijuana active ingredient) for e-cigarettes under the Dank Vapes brand, as well as some other illegal refills that people have purchased from friends, family or on the street.

Authorities noted that the Dank Vapes brand is affixed to different fill types and does not refer to a particular blend or single product. “Dank Vapes looks like the leading brand of counterfeit brands with the same packaging that can be obtained on the street or on websites that are used to market THC refills for e-cigarettes, with no one major manufacturer or one major marketer,” the Wisconsin and Illinois Health Authorities report said With the Centers for Disease Control and Prevention in the United States (CDC). It is unclear who makes these products and where they come from, the report said.

The researchers interviewed 86 people in Illinois and Wisconsin between the ages of 53 and 15, who became ill after using e-cigarettes. 60% of them needed intensive care. 87% of them purchased the fillings from informal sources in the three months before they became ill. 57 people purchased the Dank Vapes brand.

Other brands that the authorities have identified are: Moon Rocks, Off White and TKO. One of the reasons that made the products attractive is that they don’t smell of Cannabis, so the user can hide what he smokes. Health authorities do not know if the deaths and illness in other parts of the U.S. are related to those THC brands identified in Illinois and Wisconsin.

People who have been using THC for a long time have warned each other on social networks on the internet not to use Dank Vapes and other fake brands for fear of containing toxic components. Some people on social networks admitted to continuing to use the product despite the warnings.

Conclusion: What people unfortunately passed away from IS NOT the same as what you buy in-stores.
ILLEGAL, UNREGULATED cartridges and pods typically sold on the street or internet is the problem. Know the difference!

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Vaping is Easy

Vaping with e-Cigarettes has never been easier

The device we offer does not require familiarity with the operating instructions or safety measures.
All you need to do is select the right kit which will fit your needs.
Just make sure that it includes cartomizers for refill, convenient case and you can start using the E-Cigarette.

Which kit should you chose?

If you are wondering what kit should you choose, you can make a comparison between different kits on our site, this process will help you to define the purpose for which you purchase the kit and adjust the assessment accordingly.
Is it a starter kit, a disposable kit or a new advanced vaporizer that you prefer to start with? Later, after you will make the right choice of the right kit to begin with, you will be able to move to much more sophisticated sets.

It`s all about E-Cigarette accessories!

On this site you can also expand the amount of products related to the E-Cigarette and by that upgrade the quality of use.
For devices that work on the basis of powder, accessories like special loading spoon and cleaning brush are available.
The related accessories can be found as a hookah, upgraded carrying case, mobile recharger, replacement batteries and filling with variety of flavors.
The metal case will ensure a comfort and elegance during the use, portable recharger will ensure easy use at any place and at any time and different flavors of filling are suggested so that you can adjust the E-Cigarette to your unique taste so the use will be even more fun.

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What is an Electronic Cigarette?

Where does Electronic Cigarette come from and does it have disadvantages?

Electronic cigarette is one of the revolutionary solutions invented in China in order to allow the reduction of smoking and eventually even help complete rehab.
The E-Cigarette we provide holds CE & ROHS certifications that certify that our product has met the European consumer safety, health and environmental requirements.

Are there any disadvantages in E-Cigarette?

Up until those days, no formal proof of a single claim about any disadvantages of using electronic cigarettes has been found.
However, some argue that the use of an electronic cigarette is not really effective for smoking cessation.
The reason for such determination is because an integral part of the process of quitting smoking need to be related to mental encourages continued smoking.
Some argue that holding an electronic cigarette in hand and operation of exhalation, contradict the principles of quitting smoking, but this claim does not have any scientific base.

What Ministry of Health says about E-Cigarette?

Ministry of Health did not recommend sweeping and unequivocal statement regarding the use of any electronic cigarette as a smoking cessation recommended measures.
Yet, possibility of existence of any toxins in the electronic cigarette, haven’t been proved.
It is clear for everyone that the electronic cigarette does not contain the hundreds of types of toxins which founded in cigarette made of tobacco.
Besides that, electronic cigarette has the amount of benefits far outweigh the amount of possible drawbacks and it also provides the ultimate solution for those who want to save money on the purchase of cigarettes and significantly reduce their use.

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How does e-cigarette work?

How Does The E-Cigarette Works?

What is an Electronic Cigarette (E-Cigarette)?

The E-Cigarette is an electronic smoking device that uses state of the art and classy micro-electronic technology that provides smokers a real smoking experience without using fire, flame, tobacco, tar, carbon monoxide, ash, stub or foul smell found in real cigarettes. It offers smokers an opportunity to smoke in a healthier way and gives freedom to smoke anywhere. The smokers can still enjoy their nicotine, but never get exposed to harmful side effects of smoking traditional cigarettes which contain real tobacco.

E-Cigarette offers smokers many advantages over smoking traditional cigarettes:

– The product is devoid of tar and other chemical substances which are found in traditional cigarettes.

– It is a non-flammable product and it is pollution free and harmless to users.

– There are no dangers of second hand smoke and it is reusable so, there are no point to dispose the e-cigarette.

E-cigarette provides smoker the same delight, physical and emotional satisfaction which they used to get by smoking traditional cigarettes. The significant reasons to use e-cigarette are: healthier way to smoke, freedom to smoke anywhere and everywhere, no first or second hand smoke, no smoke or odor, non-flammable, convenient and cheaper than traditional cigarettes.

How Does the Electronic Cigarette Work?

The E-cigarette mimics the traditional cigarette. It looks, feels and tastes just like a real cigarette and also distributes the same pleasures of smoking a traditional cigarette, but without all the harmful effects of a traditional cigarette.

The E-Cigarette is driven by a micro-electronic technology. The actual cigarette body is made up of 2 parts: An atomization chamber and a smart chip with a lithium battery. In the front tip of the device there is an operating indicator light, that lights up when you use the Smoke To Live E-Cigarette, just like a real cigarette lights up in the end while smoking.

One of the most attractive parts of the E-Cigarette is the atomization chamber device that when puffed on creates a vapor like smoke, just like a real cigarette. This vapor is a result of the nicotine heated up by the atomizer device and creating vapor like smoke, but without any offensive odor as with smoking a real cigarette.

We believe Electronic Cigarette is the future of smoking, so have you tried it yet?

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Why switch to vaping

Why switch to vaping

Electronic-cigarettes or E-Cigarettes, are battery-powered devices that heat liquid nicotine in a disposable cartridge and produce a vapor that’s inhaled. Consumers can buy refill cartridges in various flavors and often customize nicotine levels. They also come in a disposable format, although the “rechargeables” are much more economical over time. Also referred to as “vaping,” these e-cigs are not combustible so they produce none of the ash or smoke of traditional cigarettes……a lot more on this later.

Chief parental counselor Mayor Michael Bloomberg notwithstanding, cigarette smoking in America has been on a steady decline for the last several decades. There are few certitudes in life that transcend the assurance of raising taxes on tobacco.  It’s one of many a great irony of a society so overburdened with an obsession of progressive taxation that there exist utter blindness to perhaps this most regressive of all revenue collection methods. Domestic tobacco companies slog forward under relentless siege, enduring offensives from both the federal and state bureaucrats as well as negative campaigns from any number of public health organizations.

The above issues plus ever harsher constraints on advertising, interminable legal attacks, coupled with a growing national zeitgeist promoting healthy nutrition and exercise means it is an industry with fewer and fewer friends. And the desired effects are spoken in the statistics. Per Capita cigarette consumption peaked in 1975 at about 145 packages (20 per pack) and by 2011 had plummeted to 48.5 packs or two thirds the per person peak level. That’s good, but keep in mind our population increased by 45 percent during those 36 years so in absolute terms cigarette consumption has decreased by half from the all-time high.

While all the litigation, promulgating fears of lung cancer and heart disease has taken a toll on cigarette demand, at the end of the day it’s the exponential expansions of state and federal excise taxes that have done the most harm. Federal excise taxes increased to $1.01 per pack in 2009 but sometimes it is at the state level where the most draconian tariffs are levied. As I write, another $.94 cent Federal increase is under consideration in Congress now.

Altria Group (MO), also referred to as Philip Morris USA, is the stand-alone cigarette maker which spun off its “rest of world” division, Philip Morris International (PM) in 2008. It may be facing some daunting headwinds. Strictly a domestic seller, the company, by definition, (and all domestic producers) has experienced steady bleed in case volumes exacerbated after the giant tobacco settlement of 1998.

In the 2013 first quarter ended March 31, MO’s cigarette volumes declined by 5.2 percent from the same period last year.  Though flagship brand Marlboro actually increased its share slightly to 43.6 percent of the shrinking U.S. market customers still bought 5.5 percent fewer packages. Philip Morris USA controls about one-half of all domestic cartons sold. Through steady price increases, despite year after year of volume contraction net income has continued a seemingly inexorable ascent. It is not a stasis that represents an enduring business model. Cigarettes account for around 90 percent of revenues with smokeless chewing tobaccos and snuff contributing 8 percent while wine and others are the balance. The stock is closed on Tuesday, May 21 within inches of its all-time high of $37.61. It trades at a seemingly reasonable 14.8 times forward earnings that are within the range of its ten year average…..but from a different angle appears expensive when growth is only projected to be in the 8 to 10 percent range. Like all “big tobacco,” it returns 80 percent or more of earnings to shareholders in the form of dividends or share buybacks. It yields a hefty 4.73 percent which in today’s Federal Reserve manipulated a market is a big number and no doubt is part of the reason “yield chasers” have driven this equity to all-time highs. MO is up 19 percent on the year, slightly outpacing the S&P 500. Can this upward trajectory continue?

There are signs that Philip Morris recognizes its conundrum: a continually dwindling market size and ever-rising excise taxes. To grow the company must either gain more market share or continue the wicked spiral of charging more for the product. No matter how inelastic the demand for any commodity, be it gasoline or tobacco, there are price points where usage declines fairly rapidly. The most expensive pack of cigarettes in America does not surprisingly come from New York City where per package federal, state, and city levies total $6.86 bringing the retail “price at the pump” to $12.50. A study disseminated by the New York State Department of Health estimated that low income (below $30,000) smokers waste an average of 23.6 percent of their income on cigarettes. The national average for a package of cigarettes is around $6.50 but depending on the taxes of the particular venue, prices can vary dramatically.

A Disruptive Technology?

Last month on April 25, Altria announced, with significant surrounding publicity, that through its Nu Mark subsidiary it would introduce an electronic cigarette in the second half of this year. The United States cigarette industry at the retail level is near $100 billion. So while growing rapidly, on a relative basis e-cigs as they are known, are still a fledgling concept with 2012 estimated industry-wide revenues measured at around $500 million. I wondered about this announcement and the timing of it. Perusing the latest 10Q, conspicuous was the number of recent judgments levied against Altria, a few greater than $50 million. Most all are under appeal but the question I asked is, “does this legal issue ever go away?” Is entry into the e-cigarette market now a realization, or maybe an admission, that cigarettes price increases cannot infinitely offset a shriveling market and maybe the rate of depletion will only accelerate from here?

The big impetus for the defection to the e-cig is, of course, the price. After purchasing a “Rechargeable Starter Kit” which comes complete with batteries, atomizer, USB charger, and a few filters to get a neophyte started, from that point forward it is a simple matter of purchasing the nicotine filled filter in the flavor to suit your taste….vivid vanilla, peach schnapps, or java jolt are a few offerings. Each filter roughly equals the same number of “puffs” in a package of cigarettes but cost 50 to 60 percent less depending on your residence. The savings can be even more with some brands if purchasing in larger quantities.  So for a pack, a day smoker living in a $6.50 state, just a 50 percent discount saves almost $1,200 per year.

There are at least several dozen players dividing up what is now a highly fragmented market. Altria’s much smaller competitor, Reynolds American (RAI) aka RJR has made an e-cig offering called Vuse. According to an informal survey of retailers by tobacco analysts at Wells Fargo Securities it has not been widely distributed and it has not been well received by those who do offer it. Much more significant was Lorillard Tobacco Company April 2012 $135 million acquisition of well-established e-cigarette maker Blu eCigs. In the recent first quarter 2013 10Q it was revealed that the blue eCigs division had $57 million in revenue which when annualized translates to well over $200 million in turnover making Lorillard far and away the biggest player in this space.  NJoy, a private company is the largest “non-major” e-cig purveyor. With some investigation, I discovered that there is only one pure-play publicly traded e-cigarette manufacturer; a micro-cap traded on the pink sheets called Vapor Corp (VPCO). With 2012 revenues of $20 million and a $39 million market cap this company came to life in a 2009 reverse merger. Since inception annual compound growth rates have been in the 50 percent range. Though Vapor Corp is not yet profitable, I had a chance to learn a little more about the industry in a chat with Vapor Corp CEO Kevin Frija. I wanted to know whether or not many of the small competitors were going to be able to compete against the likes of Altria, Lorillard, and RJR.

Mr. Frija: Right now, this category is growing so fast I think there is room for lots of companies to expand and have a chance to achieve profitability. Ultimately, it is going to take lots of capital to compete with the muscle of Altria. I am eager to see their (e-cig) product. (Altria) entering the fray, so to speak, is very good in that it raises the awareness of e-cigs even more which could translate to even faster growth. Ultimately, way down the road there will be inevitable consolidation which is the natural evolution for all new industries.
Richard: Speaking of growth, did you see that Wells Fargo securities in several of their reports have predicted that the e-cigarette business will overtake the traditional cigarette market within a decade.

Mr. Frija: That’s a pretty powerful statement. I do know that each day new cigarette taxes are considered, the (cigarette) market is rapidly deteriorating, and legal struggles seem interminable. I do think it’s a time to change or die.  Look at the tragedy of Kodak. Time will tell, I guess.
Richard: Do you care to talk about Vapor Corp a little…. for example your 2013 outlook.

Mr. Frija: Sure. I don’t like to talk in specific numbers other than to say growth continues to be robust. I don’t think it’s appropriate to comment on earnings at this time. I will say our margins are holding up and our most popular offering “Krave” continues as one of the leading brands in the country.
I would like to add one more thing regarding all the current competitors selling e-cigs. One of the big barriers to entry could be retail shelf space. There just is not enough space for fifty companies each wanting to display ten or fifteen different offerings and Altria will flex its power to get the prime store locations.  Right now, many of the sales take place on the internet. Maybe that will continue but product visibility is always important.

Richard: What about regulations and health issues?

Mr. Frija: Currently there is no FDA oversight for these products. The regulatory landscape moving forward is less certain. As this niche grows large, as I believe it undoubtedly will, the government revenue sniffers will undoubtedly try to cast a net on this industry.

Regarding safety, in an e-cigarette there is no tar or hundreds of other carcinogens released in the cigarette combustion process. E-cigarettes produce no smoke, just vapor. That said it is far too early for any declaration that e-cigs are completely benign for our health. After all the big source of e-cig stimulation is the nicotine, long accepted as a highly addictive substance. The FDA is heavy into their investigations so reports will be dribbling out over time.