WINSTON SALEM When change has come for tobacco during its nearly two centuries as a star of North Carolina&#x92 s economy, it usually has arrived at a leisurely pace.

Not this time. The crop and products made from it face something that has gutted or transformed many other industries in recent years a disruptive technology.

Electronic cigarettes are winning over smokers so quickly that some analysts predict the battery powered newcomer could come out on top of traditional cigarettes within a decade. That&#x92 s unsettling for the farmers and manufacturers who still make North Carolina the national leader in tobacco production and rivaled only by Virginia in cigarette manufacturing.

E cigarettes heat a liquid, usually containing the highly addictive stimulant nicotine, into a vapor that users inhale. Nicotine for the liquid is extracted from tobacco, but experts think it may take less tobacco to make the &#x93 juice&#x94 than required for an equivalent amount of traditional cigarettes.

That economic threat can also be an opportunity, partly because of the state&#x92 s decades of tobacco expertise and partly because of an odd bit of luck involving a plant called clary sage.

Some think that e cigarettes may even offer a way to slow the gradual slide in tobacco sales for domestic use, a slide that began decades before the advent of e cigarettes.

&#x93 It has been interesting to watch e cigarettes move from almost a novelty to a trend,&#x94 said state Agriculture Commissioner Steve Troxler. &#x93 The bad news is, if it results in the decline of demand for traditional tobacco, then we are going to have a new set of problems, but the good news is, yes, we are poised to take advantage of it.&#x94

This may be the key year in North Carolina&#x92 s effort to muscle into that leadership role. One reason is that Big Tobacco is becoming Big Vapor, too Major tobacco companies are moving to get ahead of the potential shift in the market by selling e cigarettes themselves, either by buying companies already in the business or starting their own. And two of the nation&#x92 s three largest tobacco companies are here.

With their deep pockets, intimate knowledge of the market, powerful research and development capacity and massive sales and distribution networks, they are in a position to quickly seize the majority of the market for e cigarettes, said Bonnie Herzog, an analyst with Wells Fargo Securities who follows the e cigarette and tobacco industries.

She and other experts believe that the big companies will market devices that simply work better, which will win over more smokers.

Greensboro based Lorillard, the nation&#x92 s third largest tobacco company, has been perhaps the most aggressive, snapping up an established e cigarette company called Blu in 2012 for $135 million. Lorillard now has nearly half the national market share for e cigarettes.

And the nation&#x92 s second largest tobacco company, Reynolds American Inc., based in Winston Salem, has launched its own e cigarette subsidiary, R.J. Reynolds Vapor Co. It has developed an e cigarette that, unlike nearly all its rivals, is made in the United States.

Reynolds is planning to launch its Vuse brand nationwide this summer. Its test marketing results suggest the impact will be huge. In July, it started sales in Colorado and quickly gained more than half the market in that state. And RJR Vapor Co. President Stephanie Cordisco said in an interview that a second phase of test marketing that began in Utah in late January is showing similar results.

The largest tobacco company, Richmond, Va. based Altria Group, has test marketed its own e cigarette, MarkTen, in two states and plans to go national in the second quarter of the year. Altria is the parent company of Philip Morris.

Transforming a market

The stakes are huge. Last year, Herzog forecast that by 2023, Reynolds could earn $5.2 billion in revenue from e cigarettes and $3.1 billion from traditional ones. And it, Lorillard and Altria would all see about half their revenue from traditional cigarettes vanish by 2023.

If analysts such as Herzog are right, the tobacco companies have to get involved to protect not just their profits, but perhaps their future, said Blake Brown, a professor of agriculture and resource economics at N.C. State University and an extension economist who specializes in tobacco issues.

&#x93 They can&#x92 t afford not to do this,&#x94 he said. &#x93 If you&#x92 re a tobacco company, you don&#x92 t want to be the next Eastman Kodak. They didn&#x92 t understand that they were in the image business. They thought they were in the film business.&#x94

This shift in history doesn&#x92 t seem lost on Big Tobacco. Lorrillard has a research and development team based in Silicon Valley. And at a Reynolds American media event in June, company President Daan Delen, tieless and in a sports jacket, roamed a stage at Pier 59 in New York, channeling the late Apple founder Steve Jobs as he unveiled Vuse. In interviews, Reynolds executives frequently use words such as &#x93 transformative&#x94 and &#x93 game changing&#x94 for their new venture.

The drop in domestic tobacco consumption, which has come at an annual rate of 3 percent to 4 percent in recent years, had already been eroding cigarette manufacturing for decades. Tobacco manufacturing employment in North Carolina is about a quarter of what it was at its peak half a century ago.

Reynolds now declines to specify where its 5,200 U.S. workers are located, but in 2012 it reported that roughly 2,100 were in the Winston Salem area. Like many other tobacco related companies, it has seen its workforce drop substantially, from about 15,000 tobacco manufacturing workers in 1987 in the Winston Salem area.

The chance to reverse that erosion isn&#x92 t lost on Reynolds executives.

&#x93 One of the things that I communicate to my team is that if we&#x92 re successful, we see jobs happening here,&#x94 Cordisco said. &#x93 We&#x92 re bringing jobs back to this company, and that&#x92 s what&#x92 s exciting.&#x94

She declined to give employment numbers but said that RJR Vapor Co. has created jobs in several states, some within the company, some with suppliers. In Kansas, it makes the cartridges. In its Tobaccoville manufacturing complex near Winston Salem, it does the final packaging.

For now, the number of employees working for e cigarette companies is relatively small because the industry is small, said Herzog, the analyst.

&#x93 Just to put it in perspective, retail sales (of e cigarettes) were $1.8 billion in the U.S. last year, estimated, and that compares to an $85 billion combustible cigarette market,&#x94 she said. &#x93 But I certainly expect that consumption of e cigs will pass consumption of combustible cigarettes in the next 10 years, and as that trajectory continues, absolutely you&#x92 re going to see companies get larger and hire more employees.&#x94

For now, most e cigarette companies, including Lorillard&#x92 s Blu, have their devices made in China, though Blu gets its liquid from a company in Wisconsin.

Herzog believes that it&#x92 s likely others will follow Reynolds&#x92 path and move the manufacturing to the United States, where they can better control quality. Federal regulations, which are widely expected to come soon from the U.S. Food and Drug Administration, may include standards that would push more companies to make e cigarettes in the U.S., she said.

The magic of clary sage

The potential upside to e cigarettes also may include farmers.

For much of tobacco&#x92 s history in North Carolina, the state&#x92 s climate and soil were natural advantages that helped them produce a product of high quality and good taste. Farmers could fend off tobacco produced in countries where the labor was cheaper, or the climate so hot year round that two crops were possible.

But one potential competitive advantage North Carolina farmers have for any e cigarette co
mes from good luck Avoca, a large botanical extraction company, is located in Bertie County near Edenton, not far from many of the state&#x92 s top tobacco producing counties.

There, it mainly has been extracting a fixative from a type of sage that helps scents last longer in perfumes and things such as laundry products. Farmers are now growing thousands of acres of the purple flowered clary sage in the area.

Last fall, Richmond, Va. based Universal Leaf, the top vendor of leaf tobacco in the world, and Avoca announced a joint venture called AmeriNic that&#x92 s already extracting nicotine from tobacco and is planning to begin commercial sales this year, company leaders said in an emailed response to questions.

The partners believe it to be the only operation in the country that extracts and purifies nicotine, an addictive stimulant in tobacco and a crucial ingredient in most e cigarette &#x93 juice.&#x94

Farmers are watching the venture closely.

&#x93 We think there is an opportunity, and we want to be the ones to fill that need,&#x94 said Graham Boyd, executive vice president of the Tobacco Growers Association of North Carolina.

It&#x92 s unclear how much tobacco e cigarette makers will need and where they will get it. In its response to questions, Universal Leaf declined to say where it plans to get its tobacco for extraction but said that its efforts to breed plants specifically for nicotine production were being done here, at least in part.

&#x93 At this time, we are evaluating various sourcing options,&#x94 the company said. &#x93 Given our long history of purchasing quality tobaccos in North Carolina, we have included farms in the state as part of our R&D effort.&#x94

The need for nicotine

Dr. Loren Fisher, an associate professor of crop science and extension tobacco specialist at NCSU, said one advantage that North Carolina has in trying to reap some benefit from e cigarettes is its centuries of hard won knowledge about breeding and growing tobacco. He thinks it will be relatively easy to develop plants that are efficient little green factories for producing large amounts of nicotine, as opposed to the current goals of taste and the quality of the leaves.

&#x93 I think we know right now what it takes to breed plants that would produce more nicotine,&#x94 he said.

For the short term, growing tobacco for nicotine could turn out to be mainly an additional market, he said, rather than just a way to replace declining sales form the domestic market. That&#x92 s because most of the state&#x92 s tobacco crop is now exported and its foreign customers are feeling less effect from e cigarette competition.

For now, Troxler said, North Carolina&#x92 s tobacco crop seems to have stabilized, mainly because of overseas demand. Chinese demand for tobacco is rising, and last summer China&#x92 s national tobacco company opened an office in Raleigh as a base for its American tobacco buying operations.

But foreign demand may not remain steady, particularly if e cigarettes also start making strong inroads overseas.

The pace of the e cigarette revolution could be affected by the nature of federal regulations that are believed to be in the pipeline. It also could be slowed by factors such as the emergence of other new kinds of tobacco products, or accelerated by something that Big Tobacco is likely to prove good at advances in technology that make e cigarettes even more attractive to smokers, Herzog said.

It also could be slowed if e cigarettes are hit with taxes by governments desperate to make up for lost revenue from the drop in traditional cigarette sales.

Cigarettes are the largest cause of preventable deaths e cigarettes are believed to be significantly safer, but there is little research on their health effects. There is a debate among public health officials about how much to encourage smokers to switch to e cigarettes by doing things like keeping taxes on them low. Some worry that the devices, with available flavors such as custard, berry or apple pie, encourage use by children.

Brown, the NCSU tobacco economist, believes that something will bring big changes to the market, though he says it&#x92 s still too early to say that it will be e cigarettes.

Philip Morris, he noted, recently announced that it&#x92 s investing $680 million in a new Italian plant that would make noncombustible cigarettes, devices in which tobacco is heated just enough to give off inhalants, but not enough to burn.

&#x93 There may not be smoking in five years, but there will be something different, whether it&#x92 s e cigarettes or noncombustibles or something, but it&#x92 s going to be changed dramatically,&#x94 Brown said. &#x93 And to predict how it will change, and how that will affect manufacturing is difficult right now.&#x94

Price 919 829 4526

E-cigarette study finds they affect the lungs in a similar way to tobacco

Buy cigarettes online free shipping|buy discount cigarettes????
MORE DON’T MISS

  • The five things he’s thinking when he first sees you naked and vice versa! Sex expert Tracey Cox on what goes through our heads when partners strip off
  • Emma Roberts goes on West Hollywood shopping spree after discussing Aunt Julia’s ‘dirty mouth’ on Jimmy Kimmel Live Looked chirpy
  • A living bereavement When ESTHER RANTZEN spoke up for couples denied access to their grandchildren, she triggered a flood of heart rending stories
  • He’s still a bachelor! Kiefer Sutherland denies that he is dating actress Sofia Karstens ‘Been out ‘once or twice, but there’s nothing more to it.,’ says actor’s rep
  • You’re supposed to be looking at the shoes! Australian glamour Cheyenne Tozzi flashes a hole lotta’ leg in photo shoot for shoe brand Wanted’s new range
  • So THAT’S how she stays trim! Cheyenne Tozzi stocks up on green beans and does dressed down with style while grocery shopping in Sydney
  • EXCLUSIVE Tori Spelling’s new crisis She needs major spinal surgery but refuses the operation because ‘her life with Dean will spin further out of control’
  • What a difference some heels make! Halle Berry goes from slacker to slicker on set of new astronaut series In a white T shirt and cut off cargo trousers
  • Off duty beauty Karolina Kurkova enjoys some rare downtime with her two leading men after a busy few days glamming it up with the fashion set
  • Ivanka Trump reveals how she transformed into the belle of the Met ball in candid set of behind the scenes pictures Real family effort
  • Ben Affleck laughs off card counting scandal as he is spotted after being banned from blackjack at Las Vegas casino Making a gas stop
  • Little boy who says he went to Heaven then came back! It’s gripped America and become a Hollywood film a four year old’s vivid account of meeting God
  • Having an O moment! Oprah Winfrey, 60, declares age is just a number in a stunning tight red gown Looking younger than ever
  • London calling! Lindsay Lohan works demure blouse, flirty miniskirt and pull up socks for another night of partying We thought she had calmed down…
  • How the Big Yin met the Grim Reaper… and got a big laugh CHRISTOPHER STEVENS reviews last night’s TV Every murder needs a mortuary…
  • Fat Amy joins the army! Rebel Wilson is 2014’s Goldie Hawn in remake of 1980’s classic Private Benjamin Played Fat Amy in 2012’s Pitch Perfect
  • What a sport! Rita Ora steps out in baggy basketball jersey and favourite boots… after wearing them with VERY low cut dress for dinner with Calvin Harris
  • Former ER star Mekhi Phifer ‘files for bankruptcy with debts totalling $1.3million’ And is claiming around $67,000 in assets
  • Motherhood is a walk in the park for Bethenny Frankel as she dotes over Bryn during a playdate Life is still one big picnic for Bethenny
  • A walk to remember Tom Felton and his girlfriend Jade Olivia load up their car with canine supplies as they head out with their dog
  • What did she say? J Lo is so blown away by Jena Irene’s Elvis cover on American Idol that she mouths the word ‘f ‘ Calm down!
  • ‘I knew something wasn’t right’ Michelle Heaton tells Lorraine about the time her baby Aaron Jay contracted viral meningitis in first TV interview
  • Make up free Amber Rose keeps her figure under wraps in baggy hoodie as she takes her ‘Lil Angel’ Sebastian grocery shopping Unusually shy
  • Is THAT how she got discovered? Charlize Theron makes a mockery of her catwalk roots by pulling cringe worthy ‘model faces’ in SNL promotional video
  • ‘Child abuse is an issue that everyone should feel passionate about stopping’ Abbey and Melinda Messenger are ambassadors for NSPCC
  • ‘I never thought I’d have children, I never thought I’d be in love’ Angelina Jolie opens up in rare interview about Brad, babies, and her rebellious twenties
  • Brandi Glanville displays her long legs in thigh skimming frock at Mother’s Day breast cancer luncheon At the Beverly Hills Four Seasons Hotel
  • Inside Bette Midler’s multimillion dollar New York Penthouse Who needs the wind beneath your wings when you’ve Manhattan under your feet?
  • That’s where you get your curls from! Justin Timberlake looks casual as he leaves Copenhagen hotel with his wavy haired mom Lynn ahead of gig
  • ‘For us, it’s all about being together’ The Bachelor Australia’s Tim Robards and Anna Heinrich reveal they are still madly in love seven months on from show
  • Double take! Agyness Deyn shows off longer locks as she is pictured for the first time in costume on set of movie Sunset Song In shabby period outfit
  • Model Erica Packer’s forgotten singing career Australian billionaire James Packer’s ex wife dabbled in music… just like Miranda Kerr Who knew?
  • Pharrell Williams reveals stepping into the spotlight with his hit song Happy has been a ‘shock’ after decades behind the scenes as he fronts W Art
  • Ryan Gosling coyly reveals he’s still with Eva Mendes as he wears necklace stamped with her dog Hugo’s name at movie premiere
  • She got over that quickly! Made In Chelsea’s Emma Miller walks arm in arm with Spencer Matthews after blasting him on the show
  • ‘There was never any risk of anyone getting hurt’ Aussie TV presenter Karl Stefanovic speaks out about the James Packer and David Gyngell brawl
  • Millie Mackintosh makes the most of her tan as she puts toned legs on display in striking printed dress for Irish Derby launch In Dublin
  • Make up free Samantha Womack, 41, shows off her natural beauty as she takes a break from the drama of EastEnders Looked glowing
  • ‘You’re a mom not a chef and let the rules slide sometimes’ Six months pregnant Savannah Guthrie reveals the top lessons her mother taught her
  • Kelly Rutherford gets an A plus in classic black sweater and skirt to attend Young Leaders Now dinner in NYC Toughest battle of her life to win back her children
  • Katherine Heigl returns to the small screen fours years after quitting Grey’s Anatomy as NBC drama State Of Affairs is picked up Wide to small screen
  • Is she pregnant again? Pink ‘expecting her second child with husband Carey Hart’ A potential sibling for her daughter Willow, who turns two next month
  • What’s her fitness spell? Bewitching Jenna Dewan shows off her post baby curves in purple top and jeans on set of show Back into shape
  • ‘Stop thinking thin and start thinking HEALTHY’ Biggest Loser host Alison Sweeney on how she lost 30lbs and kept it off Fitness to fuel her mind
  • ‘You picked on the wrong man’ Broadcaster Ben Fogle reveals that he gave black eye to the mugger who tried to steal his bag
  • ‘You’re not fit enough for Hooters!’ Formerly obese woman loses 128lbs to land job at sexy restaurant chain after man’s cruel jibe She showed them!
  • All change! Victoria Beckham steps out in a preppy green collared sweater… after opting for sleek blue ensemble ahead of annual Met Gala
  • Kerry Katona breaks down as she recalls terrifying momen
    t daughter Dylan Jorge Rose stopped breathing in first TV appearance since birth
  • Back down to earth After a whirlwind week of parties Lily Allen is reunited with her daughter Ethel Back on mummy duty after trip Stateside
  • New couple alert? Robert Pattinson’s rumoured girlfriend identified as 22 year old model Imogen Ker Were introduced by Dakota Fanning
  • Eau de Cheryl! As Ms Cole prepares to launch her first fragrance she releases a VERY sultry peek at her ad campaign Time to jump on the perfume bandwagon
  • Aloha! Alesha Dixon wears Hawaiian print strapless dress with peplum detail to dine at upmarket restaurant Looked stunning as she left Nobu in Mayfair
  • Back to the grindstone! Bohemian Jade Jagger opens gem of a store in New Bond Street as she goes upmarket Pregnant star previously had Notting Hill store
  • FIRST LOOK Kate Moss is the ultimate boho babe in behind the scenes images from Rimmel campaign Shows off her flawless skin and perfect pout
  • ‘Diaper buddies!’ Jessica Simpson is the gushing mom as she shares sweet snapshot of her children Maxwell and Ace Both in nappies
  • Less is more! Padma Lakshmi opts for elegant midnight blue halterneck (and NO accessories) as she joins Tyra Banks at Flawsome Ball
  • Pixie Geldof seen for first time since tragic death of sister Peaches as she attends Miley Cyrus concert with close friend Nick Grimshaw
  • Britain’s Got Talent judge Amanda Holden showcases her slender legs in tight white jeans as she dines out with friends Very tight jeans!
  • It’s morphin’ time! Power Rangers set for a new live action movie franchise What colour ranger was your favourite?
  • The Brook of love Kelly can’t hold back the girly giggles as she enjoys night out with fianc David McIntosh Couple back in London after LA holiday
  • Sea change Shailene Woodley teams ocean blue dress with beached out wet hair as she promotes The Fault In Our Stars in Miami On the promo trail
  • Miley encourages fans ‘to kiss members of the same sex’ and says she hopes they’re on drugs… as she wears Union Jack leotard during first London gig
  • Willow Smith, 13, raises eyebrows as she is pictured lying in bed with 20 year old actor Moises Arias Image posted on Instagram
  • Post baby beauty Emily Blunt displays her enviably toned figure in off duty ensemble just two months after giving birth In skinny jeans
  • One last puff before Miley! Kate Moss greedily smokes a cigarette as she makes surprise appearance at O2 for raunchy singer’s first UK show
  • Date night! Matt Damon takes wife Luciana Barroso out to dinner after revealing he would consider returning to the Bourne series In West Hollywood
  • Attack of the selfie Kim Kardashian unwittingly gets pictured in fan’s photo after he sneaks up and snaps her on his phone She looked bemused
  • ‘I’m broody we’re trying for a baby’ Danniella Westbrook reveals she longs for a family with toyboy fiance Tom Richards Rushing in…
  • Jourdan Bennett! Ms. Dunn is at her sultry best as she shoots new cosmetics commercial on the streets of New York Far from mellow yellow
  • No sign of tiring yet! Johnny Depp enjoys ANOTHER night out with Amber Heard in NYC but leaves his walking stick at home Party animals
  • Principles, Prada and gang decamp to Venice in Italy! But the themes of loyalty and lust prevailed on Made In Chelsea, writes Jim Shelley
  • Sibling selfie! Actress AnnaLynne McCord reveals her joy at becoming a big sister in sweet picture with her newborn brother She’s 26 years older
  • As if! Clueless star Alicia Silverstone reunites with castmates Stacey Dash and Eliza Donovan for special screening of the cult film Cher, Dionne and Amber
  • Star in stripes! Kristin Chenoweth shows off slim figure in Phillies shirt for powerhouse performance of national anthem at the baseball Philadelphia game
  • Such a drag! Zac Efron and Seth Rogan get in touch with their feminine sides on The Tonight Show Looking good, ladies…
  • SPOILER ALERT A special day in Summer Bay as Home And Away cast film scenes for Marilyn and John’s wedding Finally tied the knot
  • Coronation Street legend Jean Alexander reveals she no longer watches the soap because there is ‘too much sex’ Played Hilda Ogden
  • Beck on form! David Beckham is greeted by fans as he leaves Victoria in New York and jets off for basketball match in Miami Had been in NYC
  • She’s a cut above the rest! Christy Turlington treats herself to a visit to a hair salon in New York Got to maintain those model good looks
  • Chloe Sevigny shows off her trim pins in black skater skirt while out and about with American Pie actress Natasha Lyonne Girls’ day out
  • Lightning DOES strike twice Rita Ora scores another fashion fail in shapeless printed tracksuit… day after leading ‘worst dressed’ at the Met Ball
  • FIRST LOOK Kim, Khloe and Kourtney unveil their summer range for Lipsy… but why aren’t they modelling it this time? Why Kouldn’t they?
  • The (new) White Queen! Emily Berrington turns heads in elegant lace dress for 24 Live Another Day premiere with Kiefer Sutherland in London
  • Still turning heads! Kate Bosworth wows in sexy leather shorts after stealing the show at the Met Gala Actress looked super skinny in her ensemble
  • The morning after! Sarah Silverman and Michael Sheen look cosy after first red carpet appearance together His ex girlfriend Rachel McAdams was there too
  • Meet Grace Kelly’s American granddaughter! Prince of Monaco’s child Jazmin Grace Grimaldi hits red carpet at The Immigrant premiere
  • Made in Greece Lucy Watson posts revealing holiday snaps as she displays her trim figure in white floral bikini on last day of her trip All eyes were on her
  • Shouldn’t you be grieving? The Corrie cast cheer at Tina McIntyre’s funeral before scoffing on tea and biscuits Death hasn’t aired yet
  • ‘I eat like a horse but I train like one too’ Erin McNaught hits back at online trolls after skinny bikini snap and says being overweight is ‘unhealthy’
  • ‘I’ll never stress about being skinny’ Sam Faiers says she’ll never diet again’ after falling ill with Crohn’s Disease ‘put things in perspective’
  • Like mother, like daughter! Kate Beckinsale steps out in similar grey scarf as her mum Judy Loe while shopping in London They’re notoriously close
  • Caught on camera Shocking moment Nicholas Hoult takes flaming shot… with the help of X Men co star James McAvoy Post shoot celebrations
  • What good sports! Kourtney and Khloe Kardashian enjoy a low key night bowling while sisters Kim and Kendall glam it up at the Met Gala
  • Well that’s different! Kendall Jenner swaps satin couture for leather pants the day after the Met Gala From high fashion to casual in 24 hours
  • It’s not just about The Voice! Shakira struts her stuff in towering thigh high boots and grey mini dress Radiating a tanned and healthy glow
  • Did it hurt when you fell from heaven? Candice Swanepoel is
    effortlessly stunning as she parties in a black leather crop top
    Super slim