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NJOY

NJOY. Leading independent electronic cigarette company – no affiliation with big tobacco (no legacy of selling lethal products or of deceptive/racketeering behavior) Corporate mission – to obsolete tobacco cigarettes

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NJOY

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  1. NJOY • Leading independent electronic cigarette company – no affiliation with big tobacco (no legacy of selling lethal products or of deceptive/racketeering behavior) • Corporate mission – to obsolete tobacco cigarettes • How do we achieve this – by delivering a sufficiently satisfying and reduced harm alternative to smokers, within a regulated environment, so that smokers who cannot or will not quit can completely switch from smoking combustion cigarettes (dual use not the end) • Scientific and policy resources – Dr. Richard Carmona (17thSurgeon General, Member of NJOY Board of Directors, Chair of Scientific Advisory Committee); Dr. Josh Rabinowitz (Head of Science); David Graham (Head of Global Regulatory Affairs);PinneyAssociates

  2. Summary • E-cigs are a non-combustion alternative for smokers who cannot or will not quit combustion smoking (currently more than 18% of U.S. adults) – current toll from smoking (480,000 premature deaths annually, nearly a quarter of a trillion dollars in annual health care costs and lost productivity) • Hot button issues – flavors and advertising • Flavors help meet smokers’ needs and promote full conversion – without attracting non-smoking teens • Advertising is essential to breaking Big Tobacco’s hold on smokers and getting them to make the switch • A legal approach that equates e-cigarettes to combustion will cost lives • If we all do our jobs right - the outcome will be millions of Americans lives and trillions in health care costs saved over the next decade

  3. Why Flavors? • Delivers more satisfaction, moves smokers away from link to combustion (which does not offer flavors) • Role of tobacco and menthol flavors – entry point but not sufficient and over time unduly reminding of combustion experience • Key to transition from “smoker” to “vapor” (i.e., non-smoker/switcher) • According to study - flavor descriptors not attractive to non-smoking teens

  4. Key Takeaways – • Fruit flavors were more popular at the time of participation, while tobacco flavors were more popular at initiation of EC use. • On a scale from 1 (not at all important) to 5 (extremely important) participants answered that variability of flavors was “very important” (score = 4) in their effort to reduce or quit smoking. • The majority reported that restricting variability will make ECs less enjoyable and more boring, while 48.5% mentioned that it would increase craving for cigarettes and 39.7% said that it would have been less likely for them to reduce or quit smoking. • The number of flavors used was independently associated with smoking cessation. • (Published December 17, 2013)

  5. Emerging indications of the effectiveness of vaping vs. ecigs Category Associations Impact on smoking Daily Vapers significantly higher/lower than Daily E-cigs Source: Quant Vaping Study- March 2014- Monthly E-liquid Vapers; Daily Vapers (158); Daily E-cig users (63)

  6. Flavor Is the top reason that vaping is more satisfying than ecigs Category Associations Source: Quant Vaping Study- March 2014- Monthly E-liquid Vapers claiming ecigs more satisfying as a reason for continuing to vape (n=90)

  7. Key consumer insights on Flavors/vaping 4. Emergence of an “e-vapor graduation” Stages of a smoker’s transformation From . . . To • I want to quit • I try cig-a-likes because they’re most familiar • I become an ecig user and don’t want the reminder of cigarettes • I try vaping via tobacco/menthol flavors • I quickly expand to new vaping flavors • I don’t smoke anymore – I vape • Smoker • Dual user • Substitute for smoking • Goal is to quit • Switcher • Replacement for / disassociate with smoking • Goal is pleasure

  8. A Study of Flavor descriptors and youth non-smokers • Populations: • Smoking adults (N=432) • Target for e-cigarettes • Age 18+, smoking 3+ years • No selection for e-cigarette use • Non-smoking teens (N=216) • Focus of concern for e-cigarettes and flavors • Age 13-17, not current tobacco user, never used e-cigarettes • “Data from this survey suggest that interest in e-cigarettes is very low among nonsmoking teens and is not affected by flavor descriptors.” • “The findings show that many e-cigarette flavors appeal to smokers without appealing to nonsmoking teens, suggesting that offering flavored e-cigarettes could attract adult smokers to e-cigarette use without attracting nonsmoking teens, with potential benefits to public health.”

  9. Advertising issues • Threshold Question • Are e-cigs part of the problem, or part of the solution? • Everything flows from the answer to this question • “Cigarette brands enjoy the highest brand loyalty of all consumer products, with less than 10% changing brands annually.” (Tobacco Today) – How do we break that bond? • NJOY Television Campaigns • 2012-2013 – Cigarettes You’ve Met Your Match • 2013-2014 – Friends Don’t Let Friends Smoke • No promotion of dual use, no health or cessation claims • Care in media buying • “This data suggests that the marketing of NJOY is more focused on reaching an adult audience.” (Legacy Foundation Report, May 2014)

  10. National Tobacco Cessation Collaborative • Formed in June 2005 to improve the public's health by increasing successful cessation among tobacco users in the U.S. and Canada. Collaborative members include CDC, NCI, Legacy Foundation, NIDA, American Cancer Society. • “Increasing demand for tobacco cessation products and services represents an extraordinary opportunity. But it is a challenge that will require bold thinking, innovation, changes in practices and new approaches that start with the consumer perspective.”

  11. From 2007 National Collaborative Report

  12. From 2007 National Collaborative Report

  13. Questions?

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