This week, news broke that tobacco giant Altria purchased the electronic cigarette brand, Green Smoke. The move shows how the tobacco industry continues to diversify as tobacco sales continue to decline. The purchase announcement served as a further indication of the tobacco industry’s commitment and confidence in the electronic cigarette market. In their announcement, Altria stated that their subsidiary Nu Mark LLC would be acquiring Green Smoke for approximately $110 million, expecting to close finally during the second quarter.
As you most likely already know, Altria is not the first tobacco company to purchase an already successful electronic cigarette brand. In April of 2012, Lorillard became the first tobacco company to acquire an electronic cigarette brand when they purchased the line Blu.
As the tobacco industry continues to expand into the electronic cigarette industry, it becomes more and more certain that e-cigarettes are a force to be reckoned with. Predictions have e-cigarettes completely overtaking tobacco sales in the coming decade. While this industry is still in its infancy by comparison, as international tobacco sales are at approximately $697 billion, the tobacco industry knows their time is limited as smokers continue to lessen their smoking, and switch to electronic alternatives.
Further promise for consumers are talks of the FDA regulating e-cigarette products, to ensure safety and their efficacy, especially in regards to their effects on the body. Additional regulations will be geared towards underage usage, as there will be strict age limits towards the products as there are with tobacco cigarettes.
Electronic cigarettes are becoming more and more accepted, and this recent acquisition of Green Smoke by Altria proves it. The tobacco industry is sure of it, e-cigarette users are sure of it, and e-cigarette companies are sure of. Electronic smoking literally is the future’s way of smoking.