Reynolds American Uses Discounts to Boost Vuse Sales

The tactics, which include a big marketing push, gained market share for the e-cigarette brand.

August 21, 2020

WINSTON-SALEM, N.C.—Reynolds American Inc.’s Vuse has seen surging sales lately, as the tobacco company doubled down on price promotions and marketing, the Wall Street Journal reports. With Vuse Alto vaporizers selling for 99 cents each and a comprehensive ad campaign involving billboards, social media posts and TV commercials, Vuse has grabbed a large slice of the U.S. e-cig market.

Vuse’s success is tied to its retail availability, competitive price and marketing strategies, the company said. “We have demonstrated—and continue to demonstrate—that we market our Vuse products responsibly to adult tobacco consumers” who are at least 21 years old, said a Reynolds American spokeswoman.

The company also announced it would be increasing its marketing department. The U.S. Food and Drug Administration (FDA) published guidelines last April warning tobacco companies to avoid marketing electronic cigarettes as “cool.”

U.S. unit sales for Vuse in retail stores jumped 83% in the four weeks ended July 25, compared with the same period in July 2019, pushing the brand to the No. 2 slot behind JUUL. The FDA announced this week they would review JUUL’s application for its e-cigarette device and nicotine cartridges.

In March, Nielsen reported that sales of e-cigs had dropped. Early last month, the U.S. Senate passed a bill that would halt online e-cigarettes sales to minors, which the House had approved last year. The NACS-supported legislation requires an in-person ID check of online orders at delivery.