Like many a tobacco company the world over, BAT is setting its sights (in part) on the nascent and burgeoning e-cigarette market:
Having launched its Vype e-cigarette in the UK just last week..
But, that's not all:
BAT Industries (LON:BATS)is poised to seize the lead in NexGen nicotine products, according to US broker Citigroup.
Citigroup expects Vype to do well in the existing, unregulated e-cig market, but it is with the next range of products that it sees BAT really putting some distance between itself and rivals.
The broker expects BAT to launch two new products with medical licences over the next two years and these licences will be key in the future as Citigroup expects unlicensed products to be banned from 2016.
Interesting..I wonder if either of these products will be the end result of a new and cutting-edge nicotine delivery system that promises to provide the smoker (err...vaper) with a nicotine "fix" not unlike that of a combustible cigarette, all while purporting to be less harsh on the throat as compared to other cigarette substitutes. For those of us who find the e-cigarette to be either harsh on the throat or unsatisfying (or both), this new technology sounds promising.
..But BAT is not stopping there, for they seem to recognize that to truly be successful in the world of harm reduction, the tobacco industry is going to have to take a multifaceted approach that encapsulates realism and effectiveness together with consumer acceptability; it appears as if that's exactly what they are doing:
BAT is also upping its innovation on conventional cigarettes including capsules that convert light-tasting cigarettes to stronger flavours and hi-tech filters.
If they can manage this feat alone, I predict that millions of smokers would make the switch to a near-tar free cigarette without feeling like they have "given up" anything. In this scenario, the issue of over-compensation would become largely irrelevant, would it not?
I wonder what would happen if BAT were to use 22nd Century's patented MPO nicotine biosynthesis technology in conjunction with its next to no tar, but full-flavored cigarette..... The possibilities are endless. It's good to see innovation taking place, for the future appears a bit brighter from this vantage point.
Broker round-up: BATS to smoke e-cig rivals suggests Citigroup