Many well-known tobacco cigarette companies have taken part in the electronic cigarette market. They have not given up their tobacco cigarettes but many companies have invested in manufacturing and marketing their own brand of electronic cigarettes. This decision has given many tobacco cigarette companies the legal ability to advertise their company, something that hasn’t been allowed for over twenty years.
The first tobacco cigarette company to gain access into the electronic cigarette market was Lorillard. Lorillard joined the market in April of 2012 with its development of BluCigs, their electronic cigarette. Reynolds American then came out with their electronic cigarette, Vuse and Altria followed with their development of MarkTen electronic cigarettes.
Altria recently announced that the company would be buying out business from the electronic cigarette company Green Smoke Inc. Altria will be buying out the company with a $110 million dollar deal. They will be dong so through NuMark LLC, the subsidiary to Altria. The two companies will work in synergies together: Altria obtaining Green Smoke’s electronic cigarette(s) and Green Smoke getting Altria’s marketing channels.
This switch within tobacco companies comes as no surprise. Since electronic cigarettes first made headlines in 2006, their recorded income has doubled nearly each year. In 2013, the total income recorded was $1.5 billion dollars while back in 2007 the recorded income was just under $10 million.