NEW YORK – An investment group led by entrepreneur Sean
Parker (Napster co-founder and former Facebook president) has acquired a $75
million minority stake in electronic-cigarette firm NJOY Inc., part of a wave
of increasing interest and attention focused on the e-cigarette industry, the
Wall Street Journal reports.
The wave of interest includes Altria Group, which is
expected to detail its e-cigarette plans soon; Reynolds American Inc., which
announced that it would sell e-cigarettes in Colorado ahead of a national
rollout; and Lorillard Inc., which acquired Blu Ecigs for $135 million last
year.
All of the activity has prompted FDA tobacco czar Mitch
Zeller to describe the e-cigarette market as “the wild, wild West” in terms of
regulation.
Several states have already banned e-cigarette sales to
minors, while others outlaw their use in enclosed public spaces. California is
considering a bill that would bring e-cigarettes under smoke-free laws that
apply to public buildings, workplaces and restaurants.
Federal regulators have yet to issue firm guidance on
everything from age restrictions to advertising.
In the meantime, industry experts project U.S. retail sales
of e-cigarettes could reach $1 billion this year, double that of 2012, no doubt
a motivating factor in Parker’s investment. NJOY captured 35.6% of the $36.4
million in U.S. convenience store sales for the four-week period that ended May
11, according to Wells Fargo Securities, citing Nielsen scanner data.