In recent electronic cigarette news, tobacco giant Altria announced that they purchased the Green Smoke brand through their subsidiary, Nu Mark LLC. At a price approximated at $110 million, with an expected closing sometime in the second quarter, this is major headway for the e-cigarette industry.
While they are not the first tobacco company to expand into the e-cigarette market, the move is significant because they are one of the largest, and Green Smoke is one of the most known brands of alternative tobacco products. What this sale signifies on a larger scale is how big electronic cigarettes are getting, and how much competition they’ve put on the tobacco industry.
Nearly two years ago, in April of 2012, Lorillard expanded into the e-cigarette market, becoming the first tobacco company to do so. They acquired the brand Blu, and set the trend for other tobacco companies to start cutting their losses from smokers switching to e-cigs, by joining the competition.
While there is still plenty of speculation from skeptics in regards to the safety, standards, and research regarding them, time continues to show that consumers trust these products and are fully aware of the facts about e-cigarettes. They have experienced such positive results that they are only furthering the industry and inspiring others to do so. Along these same lines, the impending FDA regulations for e-cigarettes will hopefully prove to be promising, giving further credibility to the industry with quality standards and monitoring for safety.
With big tobacco moving into the e-cigarette market, it only solidifies the strength of alternative cigarettes as an industry. Business predictions slate e-cigarettes to overpass tobacco cigarette sales entirely within the next decade. Smokeless cigarette sales are expected to hit around $1.7 billion this year, so these numbers are quite promising. The recent purchase of Green Smoke only furthers this prediction, as the tobacco industry prepares for an electronic renaissance in the coming years.