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

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Questioning the safety of ‘smoking’ e-cigarettes – dr nina radcliff

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But unlike Sharon Stone, he was a 68 year old man, dressed in a hospital gown, and awaiting surgery. He was dodging the “pesky” restriction of a smoke free hospital environment and the need for an ashtray. On second thought, I felt as though I was on “The Twilight Zone.”

Until that day, I knew little about electronic cigarettes, also referred to as e cigarettes. Could puffing (a.k.a. vaping) on an e cigarette be the greatest thing to come along since sliced bread? Or are they just a wolf dressed in sheep’s clothing? Let’s take a look at what I found

What are e cigarettes?

If it looks like a duck, but does not function like a duck or smell like a duck, is it a duck? In many ways e cigarettes mimic traditional cigarettes the shape, the deliverance of nicotine into the lungs, the appearance of smoke. When the user inhales, it triggers a sensor that switches on a small, battery powered heater. The heater functions to vaporize liquid nicotine in a small cartridge, activate a light at the “lit” end of the device, and vaporize propylene glycol in the cartridge (the same stuff that theatrical smoke is made of).

Are e cigarettes safe?

Safer does not mean safe. Less dangerous does not mean not dangerous. The fact is e cigarettes do not contain many toxic compounds found in traditional cigarettes. Additionally, because the vapor quickly dissipates, it does not pose the same harm to bystanders as second hand smoke.

However, e cigarettes still contain nicotine which is a highly addictive, compound that increases the “vaper’s” heart rate and blood pressure. Some studies suggest other components in some e cigarettes such as formaldehyde cause cancer.

Do e cigarettes help you quit?

Depends on whom you ask. The truth of the matter is smokers are addicted to nicotine and e cigarettes continue to feed into the addiction. Nicotine patches and gum slowly release small amounts into the body. However, e cigarettes create a freebase form of nicotine that goes quickly from the lungs to the heart and brain. There is the potential of putting people in “limbo” of wanting to quit and having this hope, but allowing them to continue utilizing nicotine and the ritual of smoking (even in places where traditional cigarettes are banned).

Can they get kids hooked?

Although e cigarettes are being marketed as devices to help smokers quit, one of the biggest concerns is their appeal to children. Each day in the US, nearly 4,000 people younger than age 18 smoke their first cigarette. Kids may be more inclined to start reaching for e cigarettes because they come in several yummy flavors. The concern is we may be creating a new generation of nicotine addicts.

It’s bad for you, right?

The general perception is if something is not regulated, it is not harmful. Efforts are currently underway to change this notion. Over the next few years, e cigarettes will likely be included under the definition of a “tobacco product” and face the same set of rules.

Although the jury is out on the future of e cigarettes, I have a pretty good idea of what the verdict will be. The marketing for these devices eerily mimics that of traditional cigarettes freedom, sophistication, rebellion which appeals to youth. This makes me ask myself, do other smoking cessation methods utilize similar cool and breezy ads? Things that make you go hmmmm. Although I applaud those who have utilized them to successfully quit smoking, I worry about creating a new generation of vapers.

Dr. Nina Radcliff, of Galloway Township, is a physician anesthesiologist, television medical contributor and textbook author. Email questions on general medical topics to her at drninaradcliff