Russian structures BAT brought disposable electronic evaporators Vuse to the market

The segment of disposable electronic evaporators, popular in Russia, has attracted major players. The sale of a similar 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 the product to compete with Chinese brands, but recent regulatory measures may reduce the share of the shadow market.

Russian structures BAT introduced disposable electronic evaporators Vuse to the local market. As follows from Rospatent data, in mid-August JSC BAT-SPb filed an application to register the Vuse Pro trademark. The website with the product description is also owned by JSC MUMT, controlled by BAT. Vuse is distributed by BAT’s partner in Russia, SNS Group of Companies, according to the group’s website.

Vuse launched in the US in 2013 and is now available in 27 countries. In Russia, the brand sells three types of devices with different flavors: Vuse Pro for 5 thousand puffs costing 1.3 thousand rubles. and Vuse Go for 1.5 thousand and 600 puffs for 800 rubles. and 550 rub. respectively. The products, in particular, are presented in stores of the glo brand, under which BAT sells tobacco heating systems that require replacing sticks.

BAT (brands Dunhill, Kent, Rothmans) occupied 23.6% of the Russian tobacco market at the end of 2022, as follows from the company’s materials. This corresponds to third place after JTI (brands Winston, Camel, 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 disposable vaping device market to be launched by one of the three major players in the market. JTI and PMI in Russia today sell only reusable devices for heating tobacco with sticks under the brands Ploom and Iqos, respectively. JTI told Kommersant that the portfolio does not contain disposable electronic evaporators. PMI declined to comment.

Disposable electronic vaporizers have been one of the most popular categories among Russian smokers in recent years. As NielsenIQ reported, in March 2021 such devices were sold in 7% of tobacco stores, and by May 2022 – in 35% of such outlets. The assortment in the category has grown from 150 to 5 thousand items since 2020. The main share falls on Chinese brands, in particular HQD. The Union of Enterprises of the Industry of Nicotine-Containing Products estimated the market turnover of electronic nicotine delivery systems and similar devices in the Russian Federation in 2022 at $2.5 billion.

Maxim Korolev, member of the board of the PAURRENS association (unites participants in the electronic nicotine systems market), says that the launch of Vuse in Russia has most likely been prepared for a long time due to the general popularity of the brand in the world. In the US, for example, Vuse has outsold Juul, he notes. A Kommersant source on the market indicates that Chinese brands have dominated the Russian market of disposable electronic evaporators for the last 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 capabilities, adds Kommersant’s interlocutor. Maxim Korolev also notes that possible tightening of controls on the import of disposable electronic vaporizers from China may force consumers to switch to remaining brands, such as Vuse.

According to one of Kommersant’s interlocutors, the moment to launch Vuse may be appropriate given the latest regulatory measures that are designed to reduce the share of the shadow market. From June 1, the sale of electronic nicotine delivery devices in markets, remotely, is prohibited; open display and discounts on devices in retail are not allowed. But, Kommersant’s interlocutor adds, the risks of tightening regulation remain. President of the Small-Format Trade Association Vladlen Maksimov notes that transferring the powers of the industry regulator to Rosalkogoltabakcontrol can make the state’s approach in this regard more constructive.

Anatoly Kostyrev