The e-cig market gets a shakeup with top brands sale; the news of a potential sale with Reynolds American Inc. looking to buy their competition Lorillard Inc. Lorillard Inc. owns the most popular brand of e-cigs on the market, with a 47% share of the market, making this a very large sale of $27 billion.
This type of sale must get the approval of the government before finalizing, but if the sale does proceed, then this is going to change the face of the e-cig market. The indications are one of shock that Lorillard Inc. are selling what is the most popular brand of e-cig and the potential for greater sales, to a competitor.
Reynolds America Inc. is boosting their own e-cig on the market with the hope to take a larger share of the sales. Nevertheless, if this product doesn’t draw in the customers, they will still have the Blue Cigs, with the current owners, Lorillard Inc., but are part of the $27 billion deal between the two companies, to fall back on if their market challenge fails to draw in the smokers.
The e-cig doesn’t contain, as many chemicals as a tobacco cigarette, however, nicotine is still in the product and this is addictive, with flavours for topping up the e-cigs developing and becoming more enticing, the question is; are the companies creating more smokers for the future.
There is a suggestion that a proposal to come into force, which will ban the sale of the e-cig to minors. This news is important in all areas, children are potentially the smokers of the future, but protecting them from nicotine products as long as possible is important to protecting their health until they are legally old enough to make their own decisions.
Therefore, once the industry has digested the potential for a market buy-out by Reynolds America Inc., the potential for the market share for the new company is fantastic. This is where caution must avail, as no approval or the green light from the government for the sale to proceed. However, it is an exciting time in the e-cig industry and the potential for the future of this relatively new market.
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