China e-cigarette industry news: After completing its acquisition of Green Smoke in April, Altria has been actively developing e-cigarette products, expanding its product portfolio, and working with Philip Morris International to respond to increasingly i
China Vaping News: Following Altria Group’s completion of its acquisition of Green Smoke in April, the company has been actively developing vaping products, expanding its product portfolio, and cooperating with Philip Morris International to respond to increasingly intense competition in the e-cigarette market.
It is understood that total e-cigarette sales in the United States currently exceed US$1 billion. After the third-largest U.S. tobacco manufacturer, Lorillard, acquired Blu eCigs in 2012, it became the leader in the e-cigarette market. Reynolds American, the second-largest tobacco manufacturer, also announced last year that after testing in Colorado and Utah, it would roll out its Vuse branded vaping device nationwide this year.
Altria estimates that 90% of adult smokers in the United States are aware of e-cigarettes and about two-thirds have tried them, but only a small number use them regularly. “Many adult smokers are still looking for products that meet their needs and expectations,” said Altria Group CEO Marty Barrington, adding that Altria will pursue a broader market rollout.
At the end of 2013, Altria Group announced a strategic plan to cooperate with Philip Morris International on the joint research and development of e-cigarettes. Through their joint efforts, the plan has now received approval from the U.S. Food and Drug Administration, and the new product is scheduled to enter production in the second half of this year. Altria Group stated that after the new product goes into production, it will accelerate its entry into international markets in hopes of securing a place in the fiercely competitive e-cigarette market. Based on its risk analysis of the product and the market, Altria proposed, under mutually beneficial terms, granting Philip Morris International the right to exclusively sell the new product within the U.S. domestic market. Philip Morris International CEO André Calantzopoulos said he has great confidence in the two companies’ joint development and production of reduced-harm tobacco products.
According to the agreement, Altria Group and Philip Morris International will further deepen their cooperation and actively work with the U.S. Food and Drug Administration to improve the technical shortcomings of the new product, thereby reducing product harm, while also contacting regulators in other countries to promote the product. In addition, they will continue to strengthen technical exchanges with relevant authorities on e-cigarette-related technologies.
