Dive Summary:

• Sales of e-cigarettes are on the rise in retail shops across the U.S. due to widening margins for the merchandise.
• “The reason is retailers are getting better growth and better margins with these products,” said Bonnie Herzog, managing director of beverage and tobacco analyst at Wells Fargo.
• Electronic cigarettes are still widely immune from strict FDA criticism, although progress in the regulations is expected to become more stringent within the next year, according to reports.

From the article:

Pricing has been coming down for electronic tobacco products, which have become much more affordable relative to traditional cigarettes. “I think that has encouraged some (consumer) switching or trial, so I expect that to help with volume growth,” Herzog said. “My assumption is any new products that launch will feature attractive price points to woo customers and prices could come down a bit for that reason in the category as competition heats up.”