The past couple of months has seen a lot of action within the electronic cigarette industry with the biggest news coming in the form of a company acquisition. Blu cigs, one of the biggest, if not the biggest e cig brand in the USA was sold to Lorrillard for a reported $135 million. We first talked about this here at Ecigclick back in October last year about how one of the big tobacco companies would effect the e cig industry.
It was really only a matter of time before they entered the market and buying one of the biggest brands in the US was a smart move getting them an immediate foothold in the market, after all, most of the hard work of establishing a brand has been done. One thing is for sure I can’t see Blu Cigs being the last buy out, at $135 million its pretty much a bargain to any tobacco company and well worth the risk.
This of course lead to many discussions on forums and had a pretty mixed reaction in terms of what Lorrillard’s intentions are. For me their intentions are pretty straight forward, why would any company buy another? To make money. Lorrillard have been watching the growth of the e cig market and decided the time was right to get involved. One thing it will undoubtedly do is bring a lot more attention to vaping and get it in front of many more people. Surely this can only be a good thing? Maybe, maybe not, there are many pro’s and many cons.
Video interview with Murray Kessler
Murray Kessler is the CEO of Lorillard and was recently interviewed by US Ecig review site Ecig Advanced.
Here is a link to the video in question.
It was only a short interview and for those that can’t be bothered watching it, here are the main points we took from the video.
– They carried out a lot of research before entering the market and were impressed with the quality controls that were in place at Blu Cigs
– They see the e cigarette industry as being in its infancy and predict it will be a huge industry
– They will look to add to the QC processes at BluCig, this in turn will improve product and help adhere to regulations they see coming in the near future.
– They will regulate nicotine content in liquids making their product meet the previously mentioned ‘forthcoming regulations’.
– They will take advantage of there already huge, established retail operation to make e cigs more accessible to more people.
– They won’t be making any big changes to the actual product
– Stunting the growth of e cigs and its biggest brand by effectively shutting the brand was not a consideration
– They have a good relationship with the FDA and will work with them closely in the future
– The only worry they had was down to the regulations individual States have imposed on e cigs. They want to improve the education at a State level.
– Having studies many forms of smokeless cigarette they see the e cigarette as the only commercially viable form
– They envisage huge improvements in the technology in the coming years
That was about it! So, what effect do you think this will have on the e cig industry?