E-cigarettes could sweeten potential Reynolds-Lorillard deal

When Lorillard Inc =bought the blu eCigs brand two years ago, the electronic cigarette had a 10 percent share of a tiny U.S. market, generating about $50 million in sales. It was available in only 12,000 retail outlets and over the Internet.

Now, the U.S. tobacco company has taken blu into 149,000 outlets and drive its national market share to about 47 percent with annual sales of $200 million.

The turbo-charged growth means that blu and Lorillard's British SKYCIG e-cigarette brand may be the assets with the sweetest potential for Reynolds American Inc. as it holds talks over a deal to acquire its U.S. rival.

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