With 600 employees, 190 stores and a turnover exceeding 100 million euros, Cigusto, based in Saran (Loiret), has established itself as a key player in vaping in France. But the future looks uncertain if the amendment proposed as part of France’s 2025 budget to tax e-cigarettes is adopted. The centrist MP Charles de Courson proposes in particular an increase of 15 euro cents per milliliter of liquid. Once sold, prices would increase by at least 1.50 euros for a 10 ml bottle (the current cost varies between 4 and 6.5 euros depending on the perfumes) and 7.5 euros for a 50 ml bottle.
“It’s huge,” alarms Hervé Delille, CEO of Cigusto, in an interview with France Bleu Orléans. He fears that this price increase will push consumers to return to traditional tobacco. The interprofessional vaping federation, for its part, raises the specter of 5,000 job cuts and the closure of numerous stores.
The risk of a return to “normal” cigarettes.
According to Arnaud Dupont, physiotherapist and tobacco specialist at the University Hospital of Orléans, “studies show that the electronic cigarette reduces the risks by 95% compared to traditional tobacco, but we do not yet have the prospect of declaring it completely safe. But if we taxed these products too much we would risk discouraging those who want to quit smoking. On the other hand, not taxing e-cigarettes could also encourage non-smokers to start vaping, and possibly lead them to traditional cigarettes, even though they are less harmful. This is why my opinion on this issue is mixed. »
Céline Tevenin, user of Cigusto electronic cigarette and resident in the Eure department, says she is “astonished” by the idea of a price increase: “It’s incredible, if so, I will get supplies in Belgium or”. Luxembourg…” According to her, this increase would not push her to return to tobacco, because she appreciates the variety of flavors offered by e-liquids. However, she says she is convinced that, in the long term, if the increases multiply as for e-cigarettes, a large number of consumers will return to classic cigarettes.
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Interview between Time.news Editor and Hervé Delille, CEO of Cigusto
Time.news Editor: Thank you for joining us today, Hervé. Cigusto has become a significant player in the vaping market in France, with substantial growth in both revenue and store presence. Can you give us an overview of your journey and what has contributed to Cigusto’s success?
Hervé Delille: Thank you for having me. Our growth has been rooted in a combination of innovation, quality products, and a commitment to customer satisfaction. We’ve worked hard to establish trust within our community and to promote vaping as a viable alternative to traditional tobacco. With our dedicated team and diverse product offerings, we’ve been able to serve a broad range of customers.
Time.news Editor: That’s impressive! However, with the proposed amendment in France’s 2025 budget that could significantly increase the tax on e-cigarettes, what are your immediate concerns as a leading company in this sector?
Hervé Delille: The proposed tax increase of 15 euro cents per milliliter is alarming. This could lead to a price hike of at least 1.50 euros for a standard 10 ml bottle, and up to 7.5 euros for a 50 ml bottle. Such increases threaten to drive consumers back to traditional tobacco products, which contradicts the public health goals we all share.
Time.news Editor: That’s a valid concern. The interprofessional vaping federation has also expressed worries about similar trends. What does this potential shift back to traditional tobacco mean for public health and the industry’s future?
Hervé Delille: It’s quite serious. If vaping becomes less affordable due to taxes, we risk reversing the progress made in reducing smoking rates. Many people turned to vaping as an alternative to quit smoking, and higher prices might be a deterrent for those trying to make a healthier choice. This can lead to increased tobacco consumption, resulting in higher healthcare costs and negative health outcomes.
Time.news Editor: The price increase would essentially be a double-edged sword. It aims to reduce usage for health reasons but could inadvertently harm the very progress made. What alternatives or solutions does Cigusto propose in response to this proposed increase?
Hervé Delille: We believe in dialogue with policymakers to highlight the realities of our business and the impact on public health. We hope to advocate for regulations that support healthier choices without punitive taxation that could drive consumers away from our products. We could also explore educational campaigns and partnerships to inform consumers about the advantages of vaping over smoking.
Time.news Editor: That’s a proactive approach. In your opinion, how crucial is it for the vaping industry to unite in order to address these legislative challenges?
Hervé Delille: Unity in the vaping industry is essential. By coming together, we can present a united front to policymakers and collectively advocate for sensible regulations that prioritize public health without compromising our viability as businesses. Collaboration can also lead to comprehensive strategies that support informed consumer choices.
Time.news Editor: Very insightful. Lastly, Hervé, looking ahead, what are your hopes for Cigusto and the vaping industry in France over the next few years?
Hervé Delille: My hope is that we can successfully navigate these regulatory challenges while continuing to offer innovative, high-quality products that meet the needs of our customers. I also aspire for the vaping industry to be recognized for its role in bettering public health and to have a productive dialogue with regulators about creating a supportive environment for both consumers and businesses.
Time.news Editor: Thank you, Hervé. Your insights are invaluable, and we appreciate your time today. We wish you and Cigusto the best of luck in navigating these challenges.
Hervé Delille: Thank you for having me!