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Baxter, L., Lucas, Z

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Asked if Vuse could cannibalize Reynolds' tobacco-smoking customers, Delen acknowledged that "we are very much targeting existing smokers, and there will be some cannibalization." UBS tobacco industry analyst Nik Modi said the e-cigarettes category is relatively small compared with regular cigarettes, but "this is a very important category in growth terms." Modi noted that Lorillard's e-cigarette line accounted for just "2 percent of total sales but for over 50 percent of revenue growth." Reynolds could benefit in the same way, he said, but its bottom line could be adversely affected if Vuse doesn't sell well