Next Big Futures article e cigarette companies have raised about $5 billion over the past five years to support its efforts to create a range of products.
But a recent report from the tobacco industry group Tobacco Manufacturers Association (TMA) suggests that the industry’s biggest competitor, Philip Morris International, may have the biggest shot at competing with e cigarette makers.
According to the TMA’s annual report, Philip Morris has raised $5.9 billion for its tobacco operations since 2010, which it used to buy up the assets of other cigarette companies.
Philip Morris’ biggest acquisitions since 2010 included the Cigarette and Cigarette Equipment Manufacturers, Tobacco Equipment Manufacturer, Tobacco Supplier and Tobacco Equipment Distributors, the TFA reports.
TFA says it is “unaware” of any potential threat Philip Morris might pose to the cigarette market.TFA said that Philip Morris would be the largest tobacco player in the US if it could successfully create its own line of e cigarette products.
But according to the TMA’s report, the company’s market share could shrink by 20% if it can’t secure more cigarette patents, and it would be unable to build up a stable market position.TMA also cited recent declines in tobacco product prices as a key factor for Philip Morris, which have hurt its bottom line.
In fact, Philip has already taken steps to cut costs, including shifting to electronic cigarettes and selling e cigarettes online, TFA said.
It also said that Philip Morris could face a regulatory challenge in the United States if it attempts to enter the market.
“There is a risk that a successful competitor could disrupt our business,” TFA president, Michael L. D. Smith, said in a statement.
“The company’s focus should be on creating the best products and products that are both affordable and that are innovative, while maintaining the ability to sell products in the most convenient way.”
The TMA report is an assessment of the impact of e cigarettes on the industry.
As e cigarettes gain popularity in the wake of the Paris attacks and the deaths of three people in Florida, there are growing concerns about the potential for increased use of e-cigarettes in the future.
According to TTA, a recent survey by the American Lung Association found that more than half of American smokers have tried e-cigarette liquids.
The TFA says e-cigarette products are a “gateway to nicotine.”
It is not clear if Philip Morris is one of the companies that has been targeted by the TTA, but recently, Philip announced plans to open a brand new store in the Philadelphia suburb of West Philadelphia, a suburb that also has been plagued by the deadly wildfires that have ravaged much of Pennsylvania.
The TBA has also said the organization would be filing a lawsuit against Philips and other tobacco companies that it says have created or continue to promote harmful products.
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