Imperial Tobacco started to develop E-Cigarettes
The fourth largest cigarette manufacturer in the world Imperial Tobacco created the factory to develop electronic cigarette. The reason – the difficult conditions which prevailing in the tobacco products market in Europe, reports Reuters.
The British company, known for such tobacco brands such as Davidoff and Gauloises, said that the unit Fontem Ventures will start production in the area of steam-generating electronic cigarettes.
Commenting on this decision, the head of the company’s Alison Cooper said: “We consider all the possibilities to actively developing in this area.” She also underlined that Imperial Tobacco is ready to consider the possibility of buying a finished business related with electronic cigarettes.
With the reduction of the number of smokers in developed countries and the development of a black market of tobacco products in countries such as Spain and France, Imperial Tobacco was forced to increase the prices for its products, cut costs and focus on emerging markets such as Turkey and Saudi Arabia.
Thus, based on the results of the quarterly financial report of the company for the last six months, ended in March 31, 2013., adjusted net sales fell by 3.1%, from 3.388 billion British pounds in the last year to 3.284 billion pounds (5.09 billion dollars.). Adjusted operating profit declined by 6.5% – up to 1.425 billion pounds ($ 2.2 billion.) and adjusted earnings per share decreased by 3.1%, amounting to 0,902 pounds per share.
Electronic cigarettes – are “metal tubes” that convert liquid with nicotine into a vapor. Now they are becoming increasingly popular among those who want to quit smoking. British American Tobacco, rival to Imperial Tobacco – created a company Nicoventures to develop this type of product as early as 2011.