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Giant Cigarette Makers are Adjusting to Present Tobacco Market Environment

Published on May 12th, 2014 00:00

It is not a top secret that the volume of cigarettes marketed all over the world is decreasing, and for a number of tobacco traders this is stressing. Nevertheless, major cigarette makers such as Altria Group, Philip Morris International, and Reynolds American are not letting themselves to be put aside and are currently beginning to adjust with the times.

To begin with, Philip Morris lately signed a contract with Altria where the two tobacco giants will disclose the technology for electronic cigarettes, and tobacco products with decreased risk in conformity with a number of agreements.

Yet, what both Altria and Philip Morris International possess is the best selling and most popular Marlboro cigarette brand, which is undoubtedly the most recognizable brand on the globe and could be utilized by both makers in order to take advantage of their control of the e-cig market. With hundreds of e-cig products running after a comparatively modest market in comparison to that of conventional tobacco, major tobacco companies as Altria and Philip Morris could effortlessly become aggressive in attempting to get e-cig sales, and their possession of the Marlboro cigarettes could offer them the influence they want.

Altria is also planning to take advantage from Philip Morris' donation of products with decreased risk to the company's range of non-tobacco nicotine products for sale throughout the United States. Products with decreased risk products are, as outlined by Philip Morris, are products that minimize the risk of tobacco related health issues.

Not wanting to be overlooked, Reynolds American also demonstrates great productivity in the non-tobacco sector. Reynolds' branch, Niconovum USA, has joined its first market in the United States with Zonnic, a nicotine replacement gum, whilst another branch, R.J. Reynolds Vapor, has launched an electronic cigarette, Vuse, which has restricted distribution. So to summarize, it would show up that big tobacco is not about to close its activity and admit decreasing cigarette sales. In fact, Philip Morris and Altria are cooperating together to decrease their dependence on cigarettes and similar tobacco products, while Reynolds American is proceeding alone even thought demonstrating great progress.

As these cigarette makers transform in the course of time, investors can obtain some assurance that the paradigm change in the industry will probably protect long lasting earnings from their investments in big tobacco.