Battle for vaping leadership: Imperial Tobacco acquires Blu

Introduction: Alison Cooper of Imperial Brands has agreed to acquire Blu, the world's best-selling e-cigarette. A smoke-free battle for vaping leadership has officially begun. It is reported that with the strengthening of anti-smoking regulations and tobacco companies investing in tobacco alternatives, Cooper's decision to acquire Blu in July was aimed at propelling Imperial Brands from a laggard to a leader in the e-cigarette sector. This move has made Alison Cooper the unexpected winner of the Reynolds/Lorillard tobacco merger.

According to Chinese e-cigarette news: When Alison Cooper of Imperial Brands agreed to acquire Blu, the world's best-selling e-cigarette, she was dubbed the unexpected winner of the Reynolds/Lorillard tobacco merger.

The CEO of British Davidoff cigarette supplier may have many unexpected tasks ahead, as Blu's sales fell by 35% in the second quarter. Cooper also needs to revitalize traditional cigarettes—including the declining Winston brand, which was acquired in a $7.1 billion deal aimed at alleviating

the antitrust issues arising from Reynolds' larger acquisition.

With the strengthening of anti-smoking regulations and tobacco companies investing in tobacco alternatives, Cooper's decision to acquire Blu in July was aimed at propelling Imperial Brands from a laggard to a leader in the e-cigarette sector.

Imperial Brands has already lagged behind Philip Morris International and British American Tobacco in "harm reduction" products and entered the UK e-cigarette competition late.

Challenger MarkTen

However, she will have to wait until mid-next year for the deal to close before she can start working on Blu, hoping to maintain a dominant position in the market alongside Altria's competing brand MarkTen.

According to information resources, in the four weeks starting July 13, MarkTen's dollar market share rose by 9.3% to 12.9%, while Blu lost 4.8% of the market, dropping to 33.5%. The decline in Blu accelerated in the second quarter as customers shifted to cheaper rechargeable kits, with revenue falling from $57 million in the same period last year to $37 million.

Imperial Brands is confident in managing the Blu brand.

"Nothing has changed at the moment," said a company spokesperson, Simon Evans: "Blu remains the number one brand in the market, and it is a brand we seek to internationalize."

Cooper joined Imperial Brands in 1999 as a financial manager and became CEO in 2010. After Imperial Brands acquired Altadis in 2008, which added Gauloises cigarettes and Cohiba cigars, she has experience in building the necessary brands. Under her leadership, cigarette brands are increasing revenue in the Middle East, and Cohiba is also helping achieve growth in the Asian market.

Internationalization Push

Since Cooper became the boss, Imperial Brands' stock performance, including dividends reinvestment, has consistently lagged behind Lorillard, Reynolds, Philip Morris, Altria, and British American Tobacco. Despite a 7% drop in stock price after Imperial Brands agreed to acquire those brands on July 15, the company's stock price has outperformed Reynolds, Philip Morris, and British American Tobacco over the past year.

"What comforts me is that she successfully persuaded the former CEO of Lorillard Tobacco to lead the U.S. business," said Philip Gorham, an analyst at Morningstar, referring to Martin Oroski, who managed the company for a decade.

Retro Brand

"We know we have acquired brands that are unloved and under-invested, and we are eager to take them on," Evans said: "With significant attention and investment, we are confident we can turn the situation around.
Evans stated that the company will focus on developing the Winston brand.
"I guess one way to return to the market is to play the retro card and attract the entire retro, fashionable crowd," said Kenneth Shea, an analyst at Bloomberg Intelligence: "If you smoke Winston, you are not the most avant-garde."
Before the completion of the Reynolds-Lorillard merger, Cooper must wait for her opportunity.

Once she gains ownership, a Berenberg Bank analyst, Bloomquist, said: "This will be a clear failure or a clear success—but it will be visible."#p#分页标题#e#