BIS Research - Emerging Technology Market Intelligence

Japan Tobacco Bets Big With Logic

May 1, 2015 10:25:27 AM / by yash posted in Acquistion, Electronic Cigarette, electronic cigarette market report, Japan Tobacco, jti, Logic Technology, Market Research Report, U.S. Electronic Cigarette Market Share

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global tobacco giants were relatively slow to enter the electronic cigarette industry, but have made up for the lag, securing their positions in the market through mergers, acquisitions and/or rolling out new brands. Evidently, it comes as no surprise that the global electronic cigarette market has been growing exponentially since 2012 and has reached $4.8 billion as of 2014. In a recent development, one of the leading tobacco company Japan Tobacco, Inc. (JTI) acquired an established e cigarette brand Logic Technologies to increase its footprint in the North American market which is expected to grow at a CAGR of over 22% through 2015 to 2025.

Since its inception in 2010, Logic Technologies has been able to gain a significant market position in terms of revenue generation, competing with some of the giants from the tobacco industry such as Philip Morris, British American Tobacco, and Imperial Tobacco among others.

The acquisition presents a win-win situation for the both the acquiree and the acquired company. JTI currently holds a share of 55% of the total Japanese tobacco market, and has significant brand presence across the globe. Logic Technology accounted for over 20% of market share in the U.S. electronic cigarette industry. With the merger, JTI will be able to leverage on  Logic’s existing customer base and distribution channel, thereby, positioning itself in the league of the big tobacco both in the U.S. and  further consolidate its market position in the global electronic cigarette market.. The transaction value remains undisclosed.

JTI has been pretty active in the M&As sector of the market entropy, targeting to get hold of the major chunk of the revenue generation. For instance, in February 2015, JTI acquired the patents and trademarks from Ploom Inc and in mid June 2014, it acquired the U.K. e-cigarette brand E-lites from previous owner Zandera.

The year 2014, saw a flurry of events in the form of product launch, mergers and acquisitions, and partnership in the e-cigarette industry; Reynolds acquired Lorillard for an estimated $27.4 billion in July 2014, PMI acquired NicoCigs in June 2014, Lorrilard announced that Skycig would become Blu ecigs from May 2014, and Imperial Tobacco launched ‘Puritane’ in the U.K. Market in Feb 2014, and the list is never ending.

Our comprehensive coverage of the electronic cigarette industry includes a host of reports including Global Electronic Cigarette and Vaporizer market, U.S. E cigarette market, Europe E-cigarette market , U.S. and Europe E-liquid( Juice) market and Global Legal and regulatory report on E-cigarette Industry. To get a free sample of the reports please fill this form  with report title in the comment,or write to us at sales@bisresearch.com

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From smoking to vaping: The Evolution of Electronic Cigarette and Vaporizer

Dec 23, 2014 11:24:03 PM / by yash posted in E cig, e-cigarette, electronic cigarette, electronic cigarette market report, Vaporizer market report, Market Research Report, vape, Vaporizer

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The tobacco free electronic version of the conventional cigarette was the first of its kind e-cigarette. These looked like the conventional cigarette but instead contained a battery, coil and cartridge filled with e-juice. As time went by this version was upgraded to one which had a rechargeable battery and a replaceable cartridge. Users could vary the amount of nicotine intake depending on the cartomizer, e-juice and battery being put to use. This primarily was how the first generation of electronic cigarettes was.

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