Did Japan Tobacco Inc Make the Right Purchase?
Early this morning, Japan Tobacco Inc announced that it has agreed to purchase all outstanding shares of Zandera. Zandera is the parent company of E-Lites, which supposedly is the leading brand of electronic cigarettes in Britain. But is E-Lites the leading brand of e-cigs? According to Market Watch, Gamucci was awarded the ‘Best Electronic Cigarette’ at the Consumer Choice Awards 2014. E-Lites was among one of the nominees for the award. The Best Electronic Cigarette Award was one of the most voted for by consumers along with Best High Street Retailer and Best Consumer Mobile App. Perhaps JTI should have waited for consumer feedback on whether or not to purchase E-Lites. With the power of social media and the internet, information is easily and readily accessible. We are not sure how JTI came about to make this purchase, but regardless, JTI’s purchase will promote the growth of the electronic cigarette market.
As rates of smoking decline, major tobacco companies, such as Japan Tobacco Inc, Philip Morris International, and British American Tobacco, are looking to enter the electronic cigarette market because there is a high possibility that electronic cigarettes will eventually outsell traditional tobacco cigarettes. Electronic cigarettes have far fewer detrimental health effects than traditional cigarettes, and electronic cigarettes are recyclable and pose less of a threat to the environment. There are no cigarette butts to throw out with e-cigs. With major tobacco companies looking to enter the electronic cigarette market, there will be a stronger fight for the use of electronic cigarettes.