Altria to Buy Green Smoke

Altria, parent company of Phillip Morris of Marboro fame, has agreed to buy e-cigarette manufacturer Green Smoke for $110 million.

“Bottom line, we agree and believe that Altria can leverage its sales force, retailer relationships, and marketing expertise to quickly bring broader distribution to Green Smoke. From a regulatory perspective, this acquisition may put further pressure on the FDA to regulate e-vapor products as they become increasingly more mainstream.”

–Bonnie Herzog, Wells Fargo

The acquisition, expected to complete in the second quarter of this year, signals a move by Altria to grab a larger piece of the e-cigarette market. Altria has moved somewhat slowly into e-cigarettes, lagging behind competitors RJ Reynolds and Lorillard in getting a product out to consumers.

Green Smoke’s total revenue last year was about $40 million, compared to $24.5 billion for Altria.

Altria to Buy E-Cigarette Maker Green Smoke – WSJ.com

Altria to Buy Green Smoke

Forbes Picks for E-Cig Investment

Forbes Picks for E-Cig Investment

Altria Expands MarkTen to Arizona

Altria Expands MarkTen to Arizona

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Big Tobacco and E-Cigarettes: Stumbling out of the Gate?

Altria to Launch "Mark Ten" E-Cigarette

Altria to Launch "Mark Ten" E-Cigarette

Marlboro Maker"s Move Into E-Cigarettes

Marlboro Maker"s Move Into E-Cigarettes

Altria Takeover Rumors as FIN Hires Advisors

Altria Takeover Rumors as FIN Hires Advisors

Logic CEO on Altria"s E-Cigarette Bid

In our third video installment for the day, Fox Business News’s Stuart Varney interviews Logic Technology CEO Eli Alelov. The subject: Marlboro maker Altria’s announcement of an upcoming entry into the e-cigarette market.

Frankly, the interview is overflowing with fluff and misinformation about Logic’s position in the market, with Varney stating that that Logic is “bigger than Blu,” when they are, in fact, trailing market leaders NJOY and Blu by a very wide gap.

Alelov, who claims to run Logic with only a single partner, warns tobacco companies that the e-cigarette market is a different game, and their talents may not work well in the e-cigarette arena.

“We all fly on planes, but that does not mean that if you give us the keys, we can fly the plane.”

Alelov has previously drawn fire from the e-cigarette community for parroting the anti-tobacco zealots’ unfounded claim that flavored e-cigarettes are designed to appeal to young people who don’t smoke. Logic’s e-cigarettes are only available in tobacco and menthol flavors.

Logic CEO on Altria"s E-Cigarette Bid

Altria to Enter E-Cigarette Market

Yesterday we reported that Altria, the makers of Marlboro, L&M and other major cigarettes brands and the largest tobacco company in the world, was the last of the three largest American tobacco companies not to have entered the e-cigarette market. On the heels of that report comes a story from the Wall Street Journal announcing Altria’s intention to market an electronic cigarette product, for which it has not yet announced a name, later this year.

Sales of traditional cigarettes have slowed, dropping 5.2% for Altria, and 6.2% for the industry overall, in the last quarter. Other companies such as Lorillard, makers of the Blu e-cigarette brand, have still managed to show increased revenue thanks in part to e-cigarette sales growth.

This is probably a mixed blessing for vapers. While more visibility and a wide variety of choices are probably good for users of e-cigarettes, and will surely save the lives of smokers who switch, we’re already seeing efforts from tobacco companies like R.J. Reynolds to enact legislation designed to crush smaller e-cigarette makers and vendors, to give large tobacco companies an advantage. Legislation currently under consideration in Oklahoma would require expensive licenses and prohibit Internet sales, giving a huge lift to companies like Atria who already have the licenses, and depend on brick and mortar stores for the bulk of their sales.

Altria to Enter E-Cigarette Market – WSJ.com.

Altria to Enter E-Cigarette Market

E-Cig Popularity Hurting Traditional Cigarettes

Both Lorillard, Inc, and Reynolds American, two of the largest traditional cigarette makers in the world, are citing electronic cigarettes as a factor in a 6.2% drop in analog sales during the first quarter of this year.

Lorillard, owner of the Blu e-cigarette brand, attributes 1% of that drop directly to the rising popularity of e-cigarettes, which has overtaken the company’s sales of snuff and disolvables. Lorillard sees that trend increasing as they become more widely known.

“There is no doubt in my mind that e-cigs have tapped into a real consumer need [and] that this could become a very big category.” -Murray Kessler, CEO of Lorillard

Reynolds has jumped into the e-cig business as well with its Vuse brand. While still a minor player in the market, it is clear that Reynolds is jockeying for a spot against market leaders like Blu and NJOY.

The top player in the market, Altria, the makers of Marlboro, seem content to sit and wait for the results of FDA rulings, which were expected from the federal agency before the end of this month.

Rising E-Cig Popularity Hurting Traditional Cigarette Demand – WSJ.com.

E-Cig Popularity Hurting Traditional Cigarettes