Tobacco Companies Stepping into Vaping Industry

dallas electronic cigarette store One of the biggest tobacco companies nationwide, Altria Group, has started to lay off personnel in an effort to save $300 million a year. In an article for Gizmodo Matt Novak explains the corporation’s purpose is to invest the money in electronic cigarettes. The conclusion to capitalize in on the vaping industry is related to the deficit in financial gains in the tobacco industry.

 

Altria Group was formerly known as the Philip Morris Co. Their most acclaimed product was their Marlboro cigarettes. Today even as the industry weakens, Altria Group controls more than half the cigarette market. The tobacco industry has seen a major loss of profits due to the serious decline in the number of tobacco cigarette users, and the escalating popularity of electronic cigarettes. Worker lay-offs are Atria Groups proactive response to the major profit losses in the tobacco industry.

 

The industries downward fall began with the harrowing results from medical research regarding major health issues due to tobacco, nicotine and other chemicals in traditional cigarettes.

 

The next problem began with limitations on public smoking. Smokers were no longer able to enjoy a cigarette in public. With these problems and the outrageously high cost of cigarettes, many tobacco smokers chose other ways to smoke or quit. Vaping became the reasonable answer.

 

In the article Mr. Novak explains, as smokers began walking away from tobacco cigarettes, tobacco companies started to feel an uncompromising drop down in their profits. To counteract the loss, they searched for other ways to gain profits. Many companies found their best investment opportunity was taking their business over-seas to developing countries such as Asia. The regulations in these countries regarding cigarettes were much more lenient. Without the tobacco industry getting in their way, and the industry not be regulated as of yet, the vaping industry was able to grow. Watching the vaping industry diligently the tobacco industry was impressed by what they saw and wanted in. Using the new deeming regulations that had begun to strangle the vaping industry, tobacco companies began buying out their competitors and manufacturing better products.

 

The tobacco industry appears to have found its new profit maker in electronic cigarettes. Due to heavy-handed regulations and rising taxes smaller companies in the vaping industry are being forced out of business. The FDA’s newest regulations are choking the entire industry. The only types of businesses that will be financially able to work through the new rules in the vaping industry are Mega corporations, and large tobacco conglomerates.

 

The tobacco industry appears to be working on reestablishing its position in selling to smokers. This time it will be both tobacco cigarettes and e-cigarettes. Financially they are able to withstand the new regulations and taxes being forced on the vaping industry. If the vaping industry happens fade away due to the heavy-handed regulations and taxes, many believe smokers will make their way back to tobacco cigarettes. This would be great for tobacco companies. As for the general public, especially smokers, this would be a major setback in working to eradicate the health risks associated with smoking traditional tobacco cigarettes.

 

Do you want to learn more about how much safer electronic cigarettes are than tobacco cigarettes? Click the link below:

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References:

  1. “Makers of Marlboro Laying Off Workers to Invest in More Vaping”

20 June 2016

http://gizmodo.com/makers-of-marlboro-laying-off-workers-to-invest-in-more-1755701131