Recent reports have confirmed that the emerging industry of electronic cigarettes will continue to grow and become even more popular by leaps and bounds in the years to come. There have been quite a few companies and brands that have been able to stand out amongst their competitors when it comes to strategically making impressive moves and completing successful acquisitions that place them directly in the spotlight within this emerging market.
The Altria Group, one of the largest tobacco cigarette companies, has been able to feature themselves on that very short list of elite brands that have been successful in this regard, especially with the moves that they have made within the past several months.
The Green Smoke Acquisition
One of the most impressive moves that the Altria Group made successfully was the acquisition of Green Smoke, a popular company selling electronic cigarettes that has been able to develop and expand successful operations in the United States as well as throughout Israel. One report states that this $110 million deal is going to be finalized during the second quarter of 2014. With that kind of money being offered in the first place, it is clear that the Altria Group has shifted their focus and energy towards placing their own stake within the E-Cig industry.
The Value of This Acquisition
In addition to the money that is being made and exchanged throughout this acquisition overall, there is an additional value of this business deal that will be enjoyed and experienced in general. The Chairman and Chief Executive Officer of the Altria Group, Marty Barrington, was even reported as saying that the expertise and overall experience that Green Smoke has been able to accumulate over the years will prove to be a very valuable asset within their company’s portfolio.
In addition to being able to enjoy the profits that will be generated from the sales of Green Smoke products that have already been released, the Altria Group will also be able to benefit in the long-term by playing a significant role in the development and distribution of future products as well. According to Marty Barrington, the product lines, supply chain and top-notch customer service that Green Smoke has been able to provide to their customers and clients will play an instrumental role in the progressive growth and future success of this organization as a whole.
The Rise and Fall of MarkTen
Green Smoke will definitely not be the first venture finalized by the Altria Group to transition into the profitable market of electronic cigarettes in general. They actually released their first cigarette brand (MarkTen) back in August of last year. Studies show that it was actually the very last major tobacco company in the United States to place its stake within this market.
There were plenty of signs of consumers not receiving this particular brand or investing as much money into it as the upper management of the Altria Group expected, especially with the future rollouts of highly competitive models and devices that will be released in the near future which should blow MarkTen out of the water. By trusting in the acquisition of Green Smoke, a company that has been established and successful for several years, the Altria Group is positioning themselves in a way that will allow them to remain competitive.
What Does the Future Hold for Altria?
The Altria Group is clearly going to make some progressive moves and growth in this industry within the next year, especially if this acquisition goes through successfully. They will need to establish a major lead in this emerging market if they plan on getting their money’s worth from such a highly-anticipated yet questionable deal.