The tobacco industry is declining sales but still provides employment climate. This is addressed in special to investors who are bereaving for efficiency. This was becoming by Marlboro maker Altria after it's increased of dividends till the end of August.
The tobacco industry is taxed and regulated. Tobacco companies appreciate strong pricing that allows them to make prices higher to compensate the damages. The case can be different for Lorillard Company. After the banning of flavored cigarette brands, the FDA is also looking into banning of menthol smokers also. The FDA recognize that a lot of the people start smoking with menthol cigarettes, especially women, the minty flavor leads to bigger dependence on nicotine.
The end results of the menthol war are decisive to Lorillard, because it gets nearly 90% from the sales from menthol cigs. Lorillard Murray Kessler affirmed that company will rule and fight in court. He also added that the FDA banning menthol is not welcome. Investors from the company should be anxious when such a big percentage of sales come from menthol flavor. Reynolds and Altria have fewer exhibitions to menthol cigarettes, which make a major part from the cigarettes sales.
A changing industry
Tobacco companies are looking for new production for to sell in the USA. Altria controlled nearly 55% of the market at the end of the year, with such brands as Skoal and Copenhagen being the main. Reynolds keeps 35% of smokeless tobacco market, and this fact has shown some declining of Pall Mall and Camel for cigarette sales. Lorillard elected to invest less in smokeless products and jumped into e-cigarettes marketing. This fact obtained a lot of e-cigarette player, Blu electronic cigarettes now account for 35% share of the market.
The possibility of the electronic cigarette
Reynolds traced Lorillard and passed also into the electronic cigarette manufacture. As Lorillard, it began to advertise its e-cigarettes on TV, sharing its new production. The company announced that there new production have made a big number of improvements to the existing cigarettes brands. Altria also passed the others company becoming already a leader at in the traditional cigarettes sphere and smokeless tobacco as well. This is unusual to consider that e-cigarettes is in jack stage and it will take a long time for develop it.