Reynolds American (RAI) Expands Distribution Of VUSE VIBE

Reynolds American Inc.’s (NYSE:RAI) subsidiary R.J. Reynolds Vapor Company is reinforcing its position in the e-cigarette category with the expanded distribution of its flagship e-cigarette brand VUSE. R.J. Reynolds’ VUSE VIBES - closed tank system variant of VUSE e-cigarette brand will now be available in 25,000 stores across the country.

VUSE VIBE comes in a vape pen format with closed pre-filled 2 ml. replaceable tanks. This provides a clean smoking experience by preventing mess from pouring liquids while filling the tanks as it is the case for other similar products available in the market. Additionally, VUSE VIBE comes with a rechargeable battery and a USB charger.

VUSE VIBES holds four times more liquid compared to VUSE SOLO which is already available nationwide. VUSE VIBES are available in four variants – Original, Melon, Mint and Nectar.

VUSE received favorable response since its launch in 500 stores in Colorado in Jul 2013 and gained major market share in Utah where it was launched earlier this year. Reynolds launched the brand in two varieties — VUSE VIBE, VUSE SOLO and VUSE SYSTEM.

VUSE is a “digital” cigarette as it is fitted with a proprietary computer chip modulating its performance. The chip delivers consistent flavor giving VUSE an edge over other e-cigarettes.

In order to facilitate smooth distribution, Reynolds’ two subsidiaries — R.J. Reynolds Tobacco Company and R.J. Reynolds Vapor Company — entered into a service agreement last month to gear up the production of e-cigarettes within the next four years.

Zacks Rank

Reynolds, which is a peer of Altria Group Inc. (NYSE:MO) carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the tobacco sector worth considering include:

Imperial Brands (LON:IMB) Inc. (OTC:IMBBY) , carries a Zacks Rank #2 (Buy) and has an expected earnings growth of 8.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Philip Morris International Inc. (NYSE:PM) , also carries a Zacks Rank #2 and has an expected earnings growth of 9.24%.

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