Friday, February 1, 2013

Big Tobacco Now Joins The E Cigarette Industry

As we all know that electronic cigarettes were originally designed to be an alternative to smoking. But, what if these tobacco companies decided to manufacture/create their own  line of ecigarettes? I mean who else can better imitate the flavors that made smokers addicted for years than those from the well-known tobacco brands namely British American Tobacco(BAT), Philip Morris and R.J. Reynolds.

In 2012 Lorillard Tobacco purchased the Blu brand of e-cigarettes and RJ Reynolds(RR) is said to be producing its own brand of e-cigarette. The strategy is simple; as tobacco companies lose cigarette smokers they gain new e-cigarette customers.

In an interview with CNBC, Wells Fargo analyst Bonnie Herzog said e-cigarettes produced as much as a half-billion dollars last year and is believed to double this year. Amazingly, big tobacco industries found a way to cash in on the anti-smoking campaign. What was thought to be a bad news for tobacco industry has now become another means of market. Another speculated reason is because e-cigarettes are untaxed and unregulated in most US States (except in Minnesota). We all know how cigarettes are heavily taxed.

One main question still remains once these big tobacco companies join the electronic cigarette industry, "Are electronic cigarettes a safe alternative to smoking?"

1 comment:

  1. Electronic Cigarettes have wide retail presence in the country with the product sold in company owned retail stores, exclusive distributors and multi-brand retail outletsAlong with domestic brands, some of the Chinese brands are also very popular in the market.