Major players enter the vape market

12.09.2023
#industry news

The segment of disposable electronic vaporizers popular in Russia has attracted major players. The sale of such a device under the Vuse brand in the country was launched by British American Tobacco (BAT), which is in the process of transferring local business. It may be difficult for a product to compete with Chinese brands, but the latest regulatory measures may reduce the share of the shadow market. 

Russian BAT structures have introduced disposable electronic vaporizers Vuse to the local market. As follows from the data of Rospatent, in mid-August JSC BAT-SPb filed an application for registration of the trademark Vuse Pro. The website with the product description is also owned by BAT-controlled JSC MUMT. The distribution of Vuse is handled by BAT's partner in Russia, GC SNC, according to the group's website. 

Vuse appeared in the USA in 2013, and is now represented in 27 countries. In Russia , three types of devices with different tastes are sold under the brand: Vuse Pro for 5 thousand puffs worth 1.3 thousand rubles and Vuse Go for 1.5 thousand and 600 puffs of 800 rubles and 550 rubles, respectively. The products, in particular, are presented in the stores of the glo brand, under which BAT sells tobacco heating systems that require the replacement of sticks. 

BAT (Dunhill, Kent, Rothmans brands) occupied 23.6% of the Russian tobacco market by the end of 2022, according to the company's materials. This corresponds to the third place after JTI (Winston, Camel brands, etc.) with a share of 36.6% and Philip Morris (PMI; Marlboro, Parliament) with 31.1%. Last week, BAT announced that it had agreed to sell its business in Russia and Belarus to a consortium led by Russian management. BAT in the Russian Federation did not provide a comment. 

Vuse is the first brand in the market of disposable electronic devices for smoking, launched by one of the three main market players. 

JTI and PMI in Russia today sell only reusable devices for heating tobacco with sticks under the Ploom and Iqos brands, respectively. JTI told Kommersant that there are no disposable electronic vaporizers in the portfolio. The PMI declined to comment. 

Member of the Board of the POWERANCE Association (unites participants of the electronic nicotine systems market) Maxim Korolev says that the launch of Vuse in Russia, most likely, was prepared for a long time due to the overall popularity of the brand in the world. 

In the US, for example, Vuse has overtaken Juul in sales, he notes. A Kommersant source in the market points out that Chinese brands have dominated the Russian market of disposable electronic vaporizers for the past few years and it may be difficult for Vuse to fight them without lobbying efforts aimed at tightening imports from China. On the other hand, Vuse has great marketing and distribution opportunities, adds the interlocutor of Kommersant. Maxim Korolev also notes that a possible tightening of control over the import of disposable electronic vaporizers from China may force consumers to switch to the remaining brands — such as Vuse.

Source: 

kommersant.ru