- Apr 2, 2009
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JTI press release
What Does Japan tobacco Groups Deal With E-Lites Mean For You And The Nicotine Industry?
This is an exciting day for E-Lites - and an important one for the fast growing e-cigarette sector. It is the next stage of our success story. Over the last five years E-Lites has grown from a start-up to becoming a top brand. Our expansion will now accelerate as we combine with the financial resources and international distribution capabilities of one of the worlds biggest tobacco companies.
So what does the fusion of the UKs best recognised e-cigarette brands with one of the worlds biggest international companies mean for the fiercely competitive e-cigarette market?
Japan tobacco International (JTI) brings the E-Lites brand immediate access to almost 60,000 outlets across the UK where JTIs cigarette brands are sold. On top of that we can now reach overseas markets through JTIs global sales and distribution network. Its products are sold in 120 countries in Europe - including Russia, Asia and the rest of the world. Our objective is to see E-Lites become one of the worlds leading international e-cigarette brands.
E-Lites will also now be able to draw on JTIs immense scientific and R&D capabilities. JTI has a deep commitment to product quality and a vision for innovative nicotine delivery products. This makes them the ideal partner for us in maintaining our position at the forefront of e-cigarette research & technology and developing the next generation of e-cigarette products. Access to this depth of scientific and financial resource is critical to meeting anticipated regulatory requirements in Europe, the United States and elsewhere. To comply with heavy duty regulation requires heavy duty scientific and financial resources.
There are of course many personal stories at the heart of this British success story. The E-Lites founders are the former RAF pilot Adrian Everett and Michael Ryan who previously set up an international dance music brand. When the UK ban on smoking in public places was introduced (2007) they identified the emerging e-cigarette category and were inspired to bring these nascent products to the UK and devote themselves to the advancement and improvement of them. E-Lites is the result.
Were delighted to see how the tobacco industry has joined in on the e-cigarette markets phenomenal growth. The number of regular e-cigarette users in the UK has trebled to 2.1 million in the last two years, with nearly 20% of smokers regularly using them. The tobacco industry knows that e-cigarettes are a product that they have to make available to adult consumers. Were thrilled by the prospect of working with JTI to take E-Lites where weve always wanted to see it a leading global brand, said Adrian Everett.
I cant tell you yet what new products are soon to be launched or what JTIs investment will mean for the product range in the next 12 months, but there are fabulous times ahead, said Michael Ryan.
E-Lites aim will be to demonstrate to public health experts, regulators and governments the advantages that JTIs entry into this market will have for the global move towards e-cigarettes. JTIs distribution capability is so big that it is a game changer for e-cigarettes in the UK, said Adrian Everett. E-Lites will become available wherever cigarettes are sold in the UK, giving adult smokers access to what are widely recognized by academics as being a safer alternative to tobacco. On 29 May 2014, 53 leading academics from across the globe wrote to the World Health Organisations Director-General Margaret Chan endorsing the role of e-cigarettes as a safer alternative to tobacco. Additionally, JTIs investment and scientific and R&D capabilities will facilitate the prompt development and bringing to market of the next generation of e-cigarette products.
E-Lites shares the concerns of government that consumers should have access to the safest, highest quality e-cigarette products, and will be continuing to advocate a robust self-regulatory framework that can work in tandem with statutory rules, built on 4 pillars:
enforceable Industry Product Standards to ensure high standards of product quality & safety
an Advertising & Marketing Code to ensure that all advertising is responsible and targeted only at smokers
a +18 Sales Age Restriction and
a Joint Industry and UK Public Health-Funded Research Programme to enhance our knowledge about e-cigarettes, their constituent parts and emissions, and our understanding of the long-term effects of their use.
Goldman Sachs International has acted as exclusive financial adviser to Zandera Ltd, the owner of the E-Lites brand, in relation to the sale to JTI. We are not in a position to disclose the price or further terms of the transaction as there is a confidentiality agreement.
What Does Japan tobacco Groups Deal With E-Lites Mean For You And The Nicotine Industry?
This is an exciting day for E-Lites - and an important one for the fast growing e-cigarette sector. It is the next stage of our success story. Over the last five years E-Lites has grown from a start-up to becoming a top brand. Our expansion will now accelerate as we combine with the financial resources and international distribution capabilities of one of the worlds biggest tobacco companies.
So what does the fusion of the UKs best recognised e-cigarette brands with one of the worlds biggest international companies mean for the fiercely competitive e-cigarette market?
Japan tobacco International (JTI) brings the E-Lites brand immediate access to almost 60,000 outlets across the UK where JTIs cigarette brands are sold. On top of that we can now reach overseas markets through JTIs global sales and distribution network. Its products are sold in 120 countries in Europe - including Russia, Asia and the rest of the world. Our objective is to see E-Lites become one of the worlds leading international e-cigarette brands.
E-Lites will also now be able to draw on JTIs immense scientific and R&D capabilities. JTI has a deep commitment to product quality and a vision for innovative nicotine delivery products. This makes them the ideal partner for us in maintaining our position at the forefront of e-cigarette research & technology and developing the next generation of e-cigarette products. Access to this depth of scientific and financial resource is critical to meeting anticipated regulatory requirements in Europe, the United States and elsewhere. To comply with heavy duty regulation requires heavy duty scientific and financial resources.
There are of course many personal stories at the heart of this British success story. The E-Lites founders are the former RAF pilot Adrian Everett and Michael Ryan who previously set up an international dance music brand. When the UK ban on smoking in public places was introduced (2007) they identified the emerging e-cigarette category and were inspired to bring these nascent products to the UK and devote themselves to the advancement and improvement of them. E-Lites is the result.
Were delighted to see how the tobacco industry has joined in on the e-cigarette markets phenomenal growth. The number of regular e-cigarette users in the UK has trebled to 2.1 million in the last two years, with nearly 20% of smokers regularly using them. The tobacco industry knows that e-cigarettes are a product that they have to make available to adult consumers. Were thrilled by the prospect of working with JTI to take E-Lites where weve always wanted to see it a leading global brand, said Adrian Everett.
I cant tell you yet what new products are soon to be launched or what JTIs investment will mean for the product range in the next 12 months, but there are fabulous times ahead, said Michael Ryan.
E-Lites aim will be to demonstrate to public health experts, regulators and governments the advantages that JTIs entry into this market will have for the global move towards e-cigarettes. JTIs distribution capability is so big that it is a game changer for e-cigarettes in the UK, said Adrian Everett. E-Lites will become available wherever cigarettes are sold in the UK, giving adult smokers access to what are widely recognized by academics as being a safer alternative to tobacco. On 29 May 2014, 53 leading academics from across the globe wrote to the World Health Organisations Director-General Margaret Chan endorsing the role of e-cigarettes as a safer alternative to tobacco. Additionally, JTIs investment and scientific and R&D capabilities will facilitate the prompt development and bringing to market of the next generation of e-cigarette products.
E-Lites shares the concerns of government that consumers should have access to the safest, highest quality e-cigarette products, and will be continuing to advocate a robust self-regulatory framework that can work in tandem with statutory rules, built on 4 pillars:
enforceable Industry Product Standards to ensure high standards of product quality & safety
an Advertising & Marketing Code to ensure that all advertising is responsible and targeted only at smokers
a +18 Sales Age Restriction and
a Joint Industry and UK Public Health-Funded Research Programme to enhance our knowledge about e-cigarettes, their constituent parts and emissions, and our understanding of the long-term effects of their use.
Goldman Sachs International has acted as exclusive financial adviser to Zandera Ltd, the owner of the E-Lites brand, in relation to the sale to JTI. We are not in a position to disclose the price or further terms of the transaction as there is a confidentiality agreement.
