The market share between Vuse and Juul e-cigarettes continues to grow, according to the latest Nielsen analysis of convenience-store data.
The analysis, released Tuesday, covers the four-week period ending Aug. 13.
According to Barclays, Nielsen largely covers the big chains. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen.
In recent months, the shadow of a potential banning of Juul Labs Inc.’s e-cigarettes from U.S. retail shelves has accelerated the market-share gains of R.J. Reynolds Vapor Co.’s Vuse brand.
Vuse’s market share rose from 37.4 percent in the previous report to 39 percent, compared with Juul declining from 30.7 percent to 29.4 percent.
Meanwhile, No. 3 NJoy dropped 3 percent to 2.9 percent, while Fontem Ventures’ blu eCigs slipped from 1.7 percent to 1.6 percent percent.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 20.1 percent decline in the latest report, according to the Winston-Salem Journal.
By comparison, Reynolds’ Vuse was up 39.8 percent in the latest report, while NJoy was down 11.5 percent and blu eCigs down 29.9 percent.
Goldman Sachs analyst Bonnie Herzog wrote in her Tuesday note to investors that Juul’s market share decline occurred in part “following confusion around the FDA’s marketing denial order against Juul.”
Juul still maintains a 33.7 percent to 32.6 percent market-share lead over the previous 52 weeks.
The Vuse e-cigarette brand has expanded its U.S. market share to two full percentage points over Juul.
Vuse, a product of of R.J. Reynolds Vapor Co., held 35.1 percent of the market share, compared with Juul at 33.1 percent, according to the latest Nielsen analysis of convenience store data that covers the four-week period ending May 21.
For the latest report, NJoy dropped from 3.1 percent to 3 percent, while Fontem Ventures’ blu eCigs slipped from 2.1 percent to 1.9 percent, according to the Winston-Salem Journal.
By comparison, Vuse was ahead 34.8 percent to Juul’s 34.4 percent for the four-week period ending April 23. That was the first time Vuse held the top market share in the Nielsen report since November 2017.
However, for the past 52 weeks, Juul remains ahead 35.9 percent to 30.8 percent.
According to Barclays, Nielsen largely covers the big chains. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen.
As recently as May 2019, Juul held a 74.6 percent U.S. e-cig market share. That’s which is when a series of regulatory actions led to product-reduction concessions by Juul Labs Inc.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 9.2 percent decline in the latest report.
E-cigarette sales continue to recover from a Covid-19 slump. Sales in C-stores are up 12.7 percent after rising 2.9 percent in the previous data release, according to the latest Nielsen convenience store report released last week. Nielsen does not track vape shop data.
Credit: William Thompson
Sales overall had slumped since February 2020, when the U.S. Food and Drug Administration implemented its latest round of heightened regulations on the products, according to the Winston-Salem Journal. Overall e-cigarette sales-volume growth has declined steadily since Nielsen’s Aug. 10, 2019, report, when it was up 60.2 percent year over year.
On Feb. 6, 2020, the FDA, among other things, required manufacturers of cartridge-based e-cigarettes, such as Juul Labs, R.J. Reynolds Vapor Co., NJoy and Fontem Ventures, to stop making, distributing and selling “unauthorized flavorings” by Feb. 6, or risk enforcement actions.
Top-selling Juul’s four-week dollar sales have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 5% uptick in the latest report. By comparison, Reynolds’ Vuse was up 82.2 percent in the latest report and NJoy down 22.3 percent.
Juul’s market share dropped from 52.1percent in the previous report to 51.3 percent. It was at 53.3 percent a year ago. Vuse’s market share climbed from 29.2 percent to 30.6 percent, while No. 3 NJoy slipped from 5 percent to 4.9 percent, and Fontem Ventures’ blu eCigs slipped from 3.5 percent to 3.4 percent.
For the last 10 months, convenience store e-cigarette sales have been slumping. According to Nielsen data, e-cigarettes sales are down 3.5 percent for the four-week period ending Dec. 25. The sector, mostly consisting of convenience stores since Nielsen doesn’t track vape shop sales, has been failing since the U.S. Food and Drug Administration (FDA) implemented its latest round of heightened regulations on the products on Feb. 6.
Credit: Timothy S. Donahue
Overall e-cigarette sales-volume growth has declined steadily since Nielsen’s Aug. 10, 2019, report, when it was up 60.2 percent year over year, according to a story in the Winston-Salem Journal. The latest FDA restrictions on the sector debuted Feb. 6. Those restrictions foremost required manufacturers of cartridge-based e-cigarettes to stop making, distributing and selling “unauthorized flavorings” by Feb. 6, or risk enforcement actions.
Top-selling Juul’s four-week dollar sales have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 15.6 percent decline for the latest report. By comparison, Reynolds’ Vuse was up 87.3 percent in the latest report and NJoy down 31.5 percent.
Juul’s market share dropped from 54.3% in the previous report to 53.8 percent. It was at 55.1 percent a year ago. Vuse’s market share slipped from 28.5 percent to 28.1 percent, while No. 3 NJoy was unchanged at 5 percent, and Fontem Ventures’ blu eCigs was unchanged at 3.6 percent.
Goldman Sachs analyst Bonnie Herzog has cautioned in her monthly reports in recent months that there has been increasing consumer demand for lower-priced traditional cigarettes during the pandemic.
Herzog referred to the trend as “downtrading” from many top brands. That trend could be offset somewhat by the scheduled $600 federal stimulus payment to most Americans, which could be released as early as this week,
Cowen & Co. analyst Vivian Azer also says consumer downtrading in traditional cigarettes “remains a central theme in the U.S.
FiscalNote Markets managing director Stefanie Miller said that the Food and Drug Administration under a Biden administration “is likely to begin working anew on nicotine cap regulations for cigarettes.”
“Because of likely inaction in Congress, we now expect the Biden administration to reopen stalled menthol/flavor regulations as well.”
The $908 billion federal stimulus package contains an element that affects the distribution of electronic-cigarette products, according to tobacco analysts. The Preventing Online Sales of E-Cigarettes to Children Act prohibits the U.S. Postal Service from delivering packages containing e-cigarettes. The bill also subjects e-cigarettes to other rules that currently govern online cigarette sales. The prohibition could go into effect as soon as 120 days.
“We see this policy as mainly advancing the trend we’re already seeing in the market — which is that the large, well-capitalized manufacturers will be poised to pay the costs to be in compliance with the new more burdensome policies,” Miller wrote. “Meanwhile, smaller manufacturers and retailers likely fall short and will be forced to exit the market.”
