The deal comes as Philip Morris, the world’s biggest tobacco firm, cut its profits forecast by about 4% to between $4.87 and $4.97 per share on poor sales and price-cutting in Australia.
Interesting and curious, the tobacco keep buying e-cigarette companies whose technology is years behind the times. They can't see a market beyond the very simple cig-a-likes. The more vaping becomes mainstream, the more the cig-a-likes will be left behind.
Maybe PM feels that the Ancient Technology is all that will be Allowed in a US Regulated Market?
Or that in the long run, the market will become less regulated. Or they think they can establish Substantial Equivalence for 2nd or 3rd generation ecigs... with enough money for bribes and paperwork.
That could be Also.
And it Might just be a case of Doing Business the Microsoft way. By Buying Out any potential Competition.
Possible but the fact that cig sales are dropping and ecig sales are booming is most likely a more significant factor. And being 'last' now Phillip Morris inherits the "Kodak award"![]()
Interesting and curious, the tobacco keep buying e-cigarette companies whose technology is years behind the times. They can't see a market beyond the very simple cig-a-likes. The more vaping becomes mainstream, the more the cig-a-likes will be left behind.
But when I buy an e-Cigarette company, am I buy it's Technology? Or am I buying it's Contracts, Distribution and Receivables?
Doesn't seem like any Big Deal to "Sell" Fixed Voltage PV's. Pick up the Phone and place an Order for 100,000 510's or eGo's with you name Silk Screened on them.
But then you need a Warehouse, and some Trucks, and some Employees, and a Shipping and Receiving Department, and some Office Cubicles with Desks, and then you need some...
Maybe PM just wants something Turn-Key now. I Dunno.
But Technology doesn't seem to be the Driving Force. Because who really has a Hold on the Technology besides the High End Mod People like a Provape ?
I would think Phillip Morris has all the warehoused and distribution chains it would need with it's current business. Room for a few hundred crates of 510 or eGos and cartos would hardly be noticed.
Delivery with it's current shipments of cigarettes would be very simple, stocked and sold by the same outlets.
Nicocigs has about 27% of the UK’s e-cigarette market, which has an estimated total retail value of $350 million (£206 million). The start-up employs 40 sales staff and distributes to 20,000 stores in Britain.
I Dunno?
Capturing 25% of a Market by just Buying a Company sounds pretty Cool.
I'm just not all that Familiar with the UK Market.
I'm with you there, we're just guessing what the board rooms are planning.
It's not like they could buy SmokTec...
Hey guys, hold on a sec.
I wouldn't recommend a cig-a-like to a just quitter, they would probably benefit from a larger device. I've just bought myself a V2 set up however, and I think it's great: minute, even with a second battery in the pocket; PCC to last the whole weekend; refillable cartomizers so you can use any liquid; it's all good imo. What's not to like?
The more vaping becomes mainstream, the more the cig-a-likes will be left behind.
Such restrictive policies would relegate vaping to be as ineffective in quitting smoking as say Chantix or nic gum.