According to a report by Bloomberg on November 6th, investment marketing agency Casson Communications has published an article praising the efforts of the US Food and Drug Administration (FDA), the US International Trade Commission (ITC), Reynolds Tobacco, and Ochee, among other companies, in their joint efforts to halt the illegal importation, marketing, and sale of disposable e-cigarette products in the US market. The article suggests that this collaboration could have a positive impact on “compliant companies”.
The article’s comment highlights, “The fact of the matter is that it is beneficial for businesses to curb the influx of these illegal products.
The author believes that the illegal e-cigarettes and related products have eroded the market share, pricing power, and revenue of compliant manufacturers, distributors, and retailers. The sales of these illegal products go unreported, leading to a significant decline in sales tax revenue for states, counties, and cities.
The article further mentions, “Although it is difficult to predict that all illegal e-cigarette products will completely disappear from the US market, I believe that the actions taken by government agencies and major corporations will become more potent.
The author of the article states that compliance companies of all sizes are in favor of these collaborative efforts, especially small manufacturers and distributors of FDA authorized products, as they will reap significant benefits from these comprehensive initiatives. They “may see a substantial increase in sales and profits in a relatively short period of time.
This collaboration will have a positive impact on maintaining compliant markets and cracking down on the circulation of illegal products, thereby promoting legitimate business operations and increasing profits.