The products remain foreign to many consumers and, at the moment, their distribution is limited to a handful of test markets. However, those on both sides of the tobacco debate are watching their introduction closely. Critics question the motives behind the products, saying they may be a way for the tobacco industry to recruit new tobacco users or keep current smokers from quitting.
The tobacco companies counter that the products are simply a way to diversify within their industry and give adults who enjoy tobacco more choices, especially as smokers face increased restrictions on where they can light up. To be sure, there are good business reasons for the tobacco companies to consider diversification.
The number of cigarettes sold in the U. Herzog expects the snus products will help fuel the future growth of the smokeless category, which is already benefiting from increasingly tighter smoking restrictions and a more favorable tax status. She does not own shares of the stocks she covers. UST has long pursued a strategy focused on getting smokers to put down their cigarettes and make a permanent switch to smokeless or use these products in places such as the office, a hotel room, or a restaurant where smoking is forbidden.
UST has had a Swedish-style product known as Revel in test markets for several years, but has yet to broaden its distribution nationally. Its launch was partly born out of frustration over the difficulties associated with creating brand awareness for a product given the restrictions on marketing tobacco products. Smokeless Tobacco unit. Butler said he welcomes the competition from Marlboro Snus and Camel Snus because it will help to raise awareness.
All three companies have been trying to spread the word about the new products through Web sites dedicated to the products and direct mail campaigns targeted to their extensive databases of smokers. Although both Marlboro and Camel are well-known brands, Philip Morris clearly has the numbers on its side. After , snus investments slowed down and tobacco companies focused on e-cigarettes and heated tobacco products HTPs instead. Since , TTCs have shown renewed interest in snus-type products, in particular tobacco-free nicotine pouches.
From , the company sold snus in Sweden and Norway only. For more information see Nicotine Pouches. In their strategy review, Imperial announced they would stop expanding their oral nicotine market, while continuing to invest in their existing markets in Europe. However, in February , PMI said it was planning develop a nicotine pouch product.
However, Swedish Match continues to hold the largest share of the Western European snus market. Although the other transnational tobacco companies had invested in snus-type products, including nicotine pouches , it was not until late that PMI expressed an interest. They are also sold under cigarette brands Marlboro and Parliament in some countries. PMI periodically launches new and updated versions of its products which it tests in various markets, including the Dominican Republic.
As with snus, PMI was the last of the international tobacco companies to move into the e-cigarette market. In November , PMI announced that it was going to produce its own e-cigarette. CEO Calantzopoulos informed investors in December that Mesh was ready for further commercialisation, but that a global roll-out had been postponed due to the backlash against e-cigarettes following the sudden deaths of a number of vapers in the US.
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