Peru Report: British American Tobacco Vuse Occupies 20% Market Share, 140 Importers Introduced More Than 30 Brands in Six Years

Peru report: British American Tobacco Vuse occupies 20% market share, 140 importers introduced more than 30 brands in six years

Peru's latest report pointed out that in the past six years, about 140 importers have introduced more than 30 e-cigarette brands into Peru, with a total import value of more than 20 million US dollars. Large tobacco companies such as British American Tobacco and Philip Morris International dominate the Peruvian market. In addition, the country's regulatory policy on e-cigarettes is relatively lagging, providing opportunities for these large tobacco companies and local companies.

 

According to Ojo Público on December 1, according to data from the Peruvian Tax and Customs Administration (Sunat), in the past six years, about 140 importers have introduced more than 30 e-cigarette brands, with a total import value of more than 20 million US dollars.

 

About a decade ago, major global tobacco companies announced that they had begun to transform to less risky "new tobacco" products. Their goal is to increase sales of e-cigarettes and other devices containing tobacco and nicotine, and reduce products such as cigarettes that are harmful to health due to combustion.

 

However, new brand products launched with this goal are still harmful and can be addictive. Ojo Público's investigation found that Philip Morris International (PMI) has successfully expanded its market in Peru by maintaining traditional imports and introducing e-cigarette products.

Although PMI entered the Peruvian e-cigarette market relatively late, imports of its own brand Veev reached $311,000 between the beginning of this year and November. This accounts for 1.5% of the total e-cigarettes that entered Peru in the past six years, making it one of the 11 major importers during this period.

 

British American Tobacco (BAT) is one of the companies that entered the "smoke-free" field earlier at the national level. From 2022 to 2024, the import value of e-cigarette Vuse exceeded $4 million, accounting for 20% of Peru's total e-cigarette imports, making it the largest importer nationwide.

 

Currently, 35 countries in the world prohibit the sale of e-cigarettes. However, in the Peruvian market, more than 30 brands of e-cigarettes are already circulating. In this area where the market is less regulated, it is not just the big companies that are profiting, but there are as many as 137 importers engaged in the import of e-cigarettes and their refills, four times more than importers of traditional tobacco products.

 

Some of these companies are franchise stores, while others have begun to get involved in the e-cigarette business even if they are registered as restaurants or sports goods sellers in the records of the national tax department. This year, more than 30 brands of e-cigarette products have entered the Peruvian market in various forms and flavors.

 

British American Tobacco (BAT)

BAT's e-cigarette brand Vuse e-cigarette oil is manufactured in the United States, while the equipment is produced in China through Smoore International Holdings. In 2023, BAT's global e-cigarette sales reached 654 million units, an increase of 7% over the previous year. According to the 2023 financial report, this business line, including other non-combustion products, has accounted for 16.5% of the company's revenue. Vuse Go has entered 59 national markets, thanks to "positive regulatory progress" that has enabled it to enter emerging markets such as Colombia, Paraguay and Peru.

 

According to the report of the Organization for Economic Cooperation and Development (OECD), one thing these three countries have in common is that none of them prohibits the sale of e-cigarettes or curbs consumption through taxation. According to the 2023 Tobacco Industry Interference Index, Peru and Colombia also have a common feature that the tobacco industry interferes greatly when formulating public policies to combat tobacco consumption.

 

In the United States, one of the main markets for Vuse e-cigarettes, the sale of fruit-flavored products is not allowed. In Peru, where there are no such restrictions, BAT sells two e-cigarette products: the Vuse Go 5000 and Vuse Go 1000, which offer puffs in flavors such as watermelon, apricot and raspberry. This is despite Peru approving regulations on November 12 to ban the sale of flavored e-cigarettes to minors, which will take effect in 2025.

 

Philip Morris International (PMI)

Peru's imports of Veev e-cigarettes were valued at $310,916 as of November 1. PMI's e-cigarette brand Veev Now offers two models, with 500 and 1,800 puffs, respectively, and flavors including mint, blueberry, strawberry, watermelon and mango. According to information provided by PMI, the devices are manufactured by Kaival Brands Innovations Group in Florida, USA, while customs records show their origin as China. Kaival Brands told PMI that its Veeba and Veev Now products have seen record monthly sales. Both are part of the company's "new tobacco" portfolio, which generated 37% of total global net profits according to its 2023 financial report.

 

Canada STLTH International

Canada STLTH International has been selling its e-cigarette products in Peru since 2022 and has been the fifth largest importer in the sector for the past six years. Unlike other companies, STLTH focuses on e-cigarette products and does not outsource manufacturing. STLTH's products are already on the shelves of 1,329 points of sale in Peru, including convenience stores, grocery stores and mini markets. And its imports of imported equipment and e-liquids have increased by more than 700% in just two and a half years.

 

Other local companies

In addition to large tobacco companies, according to customs records, 137 local companies have imported e-cigarettes and cartridges between 2019 and 2024. Among the more than 30 new brands introduced in 2024 are Dragbar, Nasty, Vaporesso and Juul.

 

Among these importers, Vapo Per stands out with $2.9 million in imports over the past six years, while Vapor Club reports imports of $163,783. Vape Mode Peru's imports increased 600% between 2019 and 2023 to $750,541, and Dos Lunares brought in more than $2 million in product from 2023 to 2024 so far.