Think the electronic cigarette is the next great innovation of the tobacco companies? You'd be wrong.
Big tobacco has hit upon a brilliant strategy with reports that Reynolds American Inc, maker of Camel cigarettes, is planning to buy a company that's stopping people from smoking.
The manufacturer of cancer sticks is apparently in talks to buy Swedish maker of nicotine gum Niconovum AB. Now what could that mean?
On its website, Niconovum says its products are designed to give people better control of their cravings. And what's in it for the tobacco company. The answer is pretty obvious. Cigarette sales around the world have fallen 10%, and while the tobacco companies are still making profits off making people sick, it's a declining market. Buying Niconovum would give Reynolds access to the nicotine products market, like special chewing gum.
And because it will keep pushing cigarettes, it will be able to service its customers at both ends.
big tobacco is just playing both sides sell consumers tobacco to get them hooked then products to help them quit, smart marketing.