Where small companies endure, larger ones lurk, wait, and buy those startups once a product goes from a trend to a mega-trend.
E-cigarette sales make up one percent of the $100 billion tobacco industry, according to a report posted on the blog of The Wall Street Journal.
The WSJ report talks about how the Big Three in the tobacco business have each taken on a high-profile player in the burgeoning e-cigarette marketplace. There are no signs of market myopia here. Additionally, these companies taking ownership of e-cigs enables the firms to get back to advertising on TV, as there is no legislation currently that prohibits it.
The originating manufacturers argue that they have a foothold in the market that will endure the big bucks, extensive distribution networks, and existing brand recognition of consumers.
So, when can we expect to see e-variants of known brands such as Marlboro, Newport, and
Camel? (Sooner than later … is our guess.)
….After just four months, Vuse’s [a brand acquired by Reynolds] distribution already spans 1,800 retail outlets in Colorado, according to Reynolds. The company also has a national database of 12 million tobacco customers to whom it can market directly – a major leg up because most people who try e-cigarettes already smoke.