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Information on the Tobacco industry
November 25th, 2014 — Exhibitions
In this fast evolving category, which is expected to be around $5 billion in the US by the end of 2014, has vaping eclipsed e-cigarettes.
Most industry insiders agree vaping is fast superceding e-cigs as the preferred category.
What are your thoughts / comments??
In an expected move, PM USA raised its cigarette prices by $0.07 / cents a pack, which was immediately followed by Lorillard and RJ Reynolds.
Will others follow or exploit the price differential to gain volume??
Tobacco Exhibitions / Trade Shows / Conferences – 2015
Updated: November 5, 2014
Note: Was May 19-20.
October 4th, 2014 — Electronic Cigarettes
LOGIC Technology, the No. 1 electronic cigarette company in the U.S. according to Nielsen, today announced the launch of LOGIC PRO Advanced Vapor Systems, the most sophisticated, first-of-its-kind e-vaporizing technology ever to hit the market.
Representing the next generation of vaporizers in both technology and format, LOGIC PRO Advanced Vapor Systems are designed with high-quality metals and work in conjunction with revolutionary pre-filled, vacuum sealed eLiquid capsules to provide both a heightened level of taste, consistency and value to adult consumers as well as an enhanced profitability for retailers by allowing them to recapture sales that have migrated to online stores.
The latest addition to LOGIC’s premium product line, LOGIC PRO Advanced Vapor Systems will be unveiled at the 2014 National Association of Convenience Stores (NACS) Show, taking place Oct. 7-10 in Las Vegas.
“Each year, adult consumers spend hundreds of millions of dollars purchasing e-cigarette liquid online, with no guarantee as to its quality, consistency or taste, and waste thousands more on product that spills unused from their traditional open-tank vaporizers,” said Miguel Martin, president of LOGIC Technology. “Since LOGIC PRO Advanced Vapor Systems are only compatible with specialized high-quality LOGIC PRO eLiquid Disposable Capsules and available for purchase at our partner retailers, this product revolution is an important step in advancing the e-cigarette market.”
LOGIC PRO Advanced Vapor Systems Product Highlights Include:
* One 5-count package of LOGIC PRO eLiquid Disposable Capsules provides 25% more inhales than one standard 10ml bottle.
* Same great industry leading margins as all LOGIC Technology’s premium products.
* Significantly more vapor than traditional e-cigarettes.
* LOGIC PRO eLiquid Disposable Capsules designed to allow for seamless flavor changes.
* Intelligent lock system serves as safety measure to stop accidental activation.
* LOGIC PRO Advanced Vapor System starter kit includes a USB charger and wall charger.
Available in LOGIC’s signature flavors: Black and Platinum Tobacco, Black and Platinum Menthol.
“From our inception in 2010 with the launch of our first LOGIC e-cigarettes, to the introduction of our newest, cutting-edge LOGIC PRO Advanced Vapor Systems, we’ve continued to perfect our product by harnessing both the power of innovation and the precious value of our customers’ and partners’ feedback; I believe our vigorous growth is a testament to that,” Martin said. “We’re thrilled to offer this revolutionary new technology to our loyal trade partners and adult customers, whose feedback has been vital to not only the LOGIC PRO Advanced Vapor Systems ideation and development process, but to LOGIC Technology’s continued success in the industry overall.”
LOGIC PRO Advanced Vaporizing Systems will be ready to hit retail shelves by winter 2014, accompanied by strong retail support programs. Following the launch, LOGIC Technology expects to deliver additional new products and breakthrough innovation to its adult consumers in the coming year, while maintaining its responsible industry approach.
Retailers can view the new vaping system at the NACS Show in Las Vegas by visiting LOGIC at booth 2963.
President Obama has released his proposed Fiscal Year 2015 federal budget that includes a $.94 per pack increase in the federal cigarette tax rate and a proportionate 93% increase in all other tobacco tax rates. Each of these tax rates would be annually adjusted upward by an inflation index. The additional cigarette and OTP tax revenue would fund pre-school education programs for four years olds in low income families.
Recent rumors of consolidation now appear accurate with the recent news Tabesa has acquired cigarette manufacturers Veneto Tabacos and Monte Carlo.
All factories are located close to Ciudad del Este.
It remains to be seen if the factory operations will be consolidated too.
Tabesa is by far the largest cigarette producer in Paraguay with a large diverse export market. The business is owned by the recently elected President.
There are further rumors that Tabesa’s recent acquisistion frenzy is not over – so watch this space.
Will consolidation continue and where is this headed??
Who will be next?
The UK Financial Times published an article today that Reynolds American (RAI,) the US holding company for RJR Reynolds Tobacco Company – is considering acquiring Lorillard Tobacco – effectivley merging the #2 and #3 tobacco companies in the USA.
This is not new – but the timing is. Rumors of RAI acquiring Lorillard have been around for several years. Is this wishful thinking?
From one perspective it makes sense. RAI could easily merge Lorillard’s manufacturing into existing facilities – for a huge cost saving. The Lorillard business is hugely profitable. And there are further easily realizable cost-savings from consolidation.
On the other hand acquiring Lorillard now, prior to the FDA ruling on Menthol cigarettes (Newport is the US’ leading menthol brand) and e-cigarettes (Blu is the leading US e-cigarette,) looks premature.
Besides this the FTC may not like (or agree) a merger. RAI would own Newport, Kool and Salem - the number 1, 2 and 3 menthol brands in the US.
Would a combined operation compete more effectivley with Altria?
What do you think??
Who stands to benefit the most?