Friday, 28 September 2012

Big Tobacco and E-cigarettes

Are the big tobacco companies going to sit back and watch from the sidelines as electronic cigarettes continue to gain popularity? I don't think so.

This article from the Financial Times shows that the big players are at least plotting an entrance into the market, as many smaller (analogue) cigarette manufacturers have already done.

British American Tobacco, owner of such brands as Dunhill, Lucky Strike, Kent and Pall Mall has formed the start up company Nicoventures, which it says hopes to produce a healthier alternative to cigarettes. According to the FT though this will only be coming along sometime in 2015, too little too late perhaps?

Lorillard, the manufacturer of Newports bought Blu, a manufacturer of e cigs in April of 2012, in what has widely been seen as big tobacco's first foray into the industry. Will this be the start of mass consolidation? I believe it will be interesting to wait and see how long these huge companies can sit on the sidelines as their profits drop from increased regulation and the surge in popularity of e cigarettes? any thoughts? leave a comment below:

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