# Makers of Marlboro Laying Off Workers to Invest in More Vaping



## Alex (28/1/16)

*Makers of Marlboro Laying Off Workers to Invest in More Vaping*



Matt Novak
Today 12:38pm
Filed to: vape 'em if you got 'em
3.7K
21







Altria Group, America’s biggest tobacco company and makers of the iconic Marlboro brand, is laying off workers to save $300 million per year. Where are they going to put all that money? Into a true growth market: Electronic cigarettes.

Today Altria, formerly known as Philip Morris, controls just over half of the traditional cigarette market in the US. But its sales volumes are down 2.6 percent since last quarter. As the _Wall Street Journal _reports, the company wouldn’t go into specifics about the layoffs, but said that it would definitely be putting more money into e-cigarettes:

When asked during the call what the company planned to do with the $300 million in savings, [Chief Executive Marty] Barrington declined to offer specifics but did say the company continues to invest in “reduced harm products” such as electronic cigarettes and in its brands.

With American smoking rates plummeting over the last half-century, tobacco companies have scrambled to find ways to increase profits. The most popular strategy as of a decade ago was to expand in developing countries (especially in Asia) with less stringent laws about workplace smoking and cigarette advertising. More recently, the largest tobacco firms have been both buying up and starting their own e-cigarette brands.


Altria, has been behind the curve when it comes to the vaping market. The company is currently developing its iQOS e-cigarette, but competing tobacco companies have snapped up firms with some of the best brand recognition. For example, Reynolds, the second largest which recently acquired Lorillard, has the VUSE brand of e-cig. Before Lorillard was acquired they had purchased and then spun off one of the most popular e-cigarette brands, Blu.

The electronic cigarette market is still the Wild West in a lot of ways, with regulators debating over how to control the relatively new technology and public health advocates unsure about whether to promote them as harm reduction products or condemn them as just another harmful nicotine-delivery device.

Private businesses and local municipalities have come down hard on vaping in public over the past few years, and if history is any guide, we’ll see more government regulation coming soon. But for now, businesses like Altria certainly see electronic cigarettes as a more palatable product than their old-fashioned cigarettes.

_(Photo by ChinaFotoPress/Getty Images)_

_source: http://gizmodo.com/makers-of-marlboro-laying-off-workers-to-invest-in-more-1755701131_

Reactions: Like 4 | Informative 3 | Useful 2


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## Kuhlkatz (28/1/16)

I SO want to dislike this post, but it's not your view @Alex ...

This is exactly why the top level schmucks are supporting all the restrictive suggested legislation around e-cigs, for both juices and devices. The only ones that will survive should they be pushed through, is Big Tobacco and Big Pharma - unfortunately all supporting the kakkest devices, but likely the simplest ones to get compliant.
If they save $300 Million a YEAR just by layoffs, that will easily cover their arses for compliancy on 300 juices, devices or any combo of the 2 they can think of for the foreseeable future, while they still make tons more money for bribes by selling stinkies to ex vapers that now cannot legally get their preferred fix any longer.


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## Neal (28/1/16)

Kuhlkatz said:


> I SO want to dislike this post, but it's not your view @Alex ...
> 
> This is exactly why the top level schmucks are supporting all the restrictive suggested legislation around e-cigs, for both juices and devices. The only ones that will survive should they be pushed through, is Big Tobacco and Big Pharma - unfortunately all supporting the kakkest devices, but likely the simplest ones to get compliant.
> If they save $300 Million a YEAR just by layoffs, that will easily cover their arses for compliancy on 300 juices, devices or any combo of the 2 they can think of for the foreseeable future, while they still make tons more money for bribes by selling stinkies to ex vapers that now cannot legally get their preferred fix any longer.



Thanks for points raised @Kuhlkatz, and good to see someone get passionate about the state of affairs. I read through this article a couple of times, my first response was to be happy that the big corps are shitting themselves about vaping, after reading it again I was feeling a sense of impending doom. Thanks to @Alex for his efforts, as you state the views posted are not his, but help to keep us all informed. Playing ostrich with our heads in the sand is not going to benefit any of us.

Reactions: Funny 1


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## Pixstar (28/1/16)

I too do not know if this is a good thing or a bad thing...

Reactions: Agree 1


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## Kuhlkatz (28/1/16)

Yep @Neal , that is unfortunately the reality. The small innovative supplier of juices and/or devices that has the vaper's interest at heart, is unfortunately also the one NOT making billions off of us suckers that's hooked on vaping for a safer and better lifestyle.
Big Tobacco and Big Pharma unfortunately has been riding the crest of 'regulated' (read over-inflated) sales since forever, which is why they have money to burn and buy opinions and support for their 'noble cause'. They are allowed to distribute virtually anything without having to jump through hoops.
Just think of generic medicines vs the trademarked ones. They cost a fraction of the original, and most likely includes a 'licensing cost' to the trademark owner.
Big Tobacco is taking everyone for a ride, right from the farmer to the user and the other tax payers ... The WHO, FDA and Government is already in their pockets anyway.

Governments all over the world are canning it on taxes on sales of stinkies, which they will surely lose if they get as hard-arsed on smoking legislation as they plan to get on e-juices and mods. You will be forced to buy a pack of 5 smokes, 4 times a day, just like you will be forced to purchase 10ml of e-juice at a time.. that surely sounds like it will help the industry stay 'honest'. And this is just to keep the kids safe ?

Never mind the estimated cost of ~ $1 million (think that is what was mentioned) ?? to get a device (mod), another cool million for a tank with a .5 ohm coil, and one more for the same tank with a .3 ohm coil to get these devices tested and certified. Now the juices, for each nic strength of the same juice, you as a mixologist would have to fork out the same money to get it tested, certified and approved to be able to sell it. Makes an awful lot of sense.

Time to move to the US, start my own weed farm and just get high on my own supply... At least that is legal over there, and I'll have no cares in the world or give a shit about any of the other problems. It is safe, right ?

Reactions: Like 2 | Agree 1 | Winner 1 | Optimistic 1


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## Alex (29/1/16)

This move was inevitable from big tobacco, the writing's been on the wall for quite some time already. 

The long term future of cigarettes consumption is no longer guaranteed, which is good news as far as vaping goes. And the argument put forward by vaping opponents about young people moving on to real cigarettes, is looking really weak as time goes by. So in that respect this is actually great news.

Reactions: Like 1 | Agree 4


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## CloudmanJHB (29/1/16)

Like Alex said , it was only a matter of time till they started investigating and investing in this. 
Let's see if others follow?


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## Pixstar (29/1/16)

CloudmanJHB said:


> Like Alex said , it was only a matter of time till they started investigating and investing in this.
> Let's see if others follow?


Thing is, will they put up a decent fight, as in will they make good gear (like the Kanger, Eleaf, Joyetech)? Not cig-alike crap some of them have already invested in...There's a place for those in the market but I have not seen many that get a thumbs up.


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## WARMACHINE (29/1/16)

Pixstar said:


> Thing is, will they put up a decent fight, as in will they make good gear (like the Kanger, Eleaf, Joyetech)? Not cig-alike crap some of them have already invested in...There's a place for those in the market but I have not seen many that get a thumbs up.


Don't think they would be interested in the mod business. They will probably look at the retail business, similar to Twisp, but on a massive scale. These businesses are about volumes, and massive volumes. The tobacco industry, at present, is worth about $300 billion annually.

Reactions: Agree 1


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## Pixstar (29/1/16)

WARMACHINE said:


> Don't think they would be interested in the mod business. They will probably look at the retail business, similar to Twisp, but on a massive scale. These businesses are about volumes, and massive volumes. The tobacco industry, at present, is worth about $300 billion annually.


But there are some decent Twisp type ecigs out there, I'm hoping they make them as good. Would be a positive move for the industry as a whole.

Reactions: Agree 1


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## WARMACHINE (29/1/16)

Pixstar said:


> But there are some decent Twisp type ecigs out there, I'm hoping they make them as good. Would be a positive move for the industry as a whole.


Agree, making them good, don't think it will happen. It's all about volumes and driving the price point down to a level for the masses.

I wonder if they would use the anti-tobacco / health benefits marketing angle. Bit of a catch 22.


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## Darryn Du Plessis (29/1/16)

Go


Kuhlkatz said:


> Yep @Neal , that is unfortunately the reality. The small innovative supplier of juices and/or devices that has the vaper's interest at heart, is unfortunately also the one NOT making billions off of us suckers that's hooked on vaping for a safer and better lifestyle.
> Big Tobacco and Big Pharma unfortunately has been riding the crest of 'regulated' (read over-inflated) sales since forever, which is why they have money to burn and buy opinions and support for their 'noble cause'. They are allowed to distribute virtually anything without having to jump through hoops.
> Just think of generic medicines vs the trademarked ones. They cost a fraction of the original, and most likely includes a 'licensing cost' to the trademark owner.
> Big Tobacco is taking everyone for a ride, right from the farmer to the user and the other tax payers ... The WHO, FDA and Government is already in their pockets anyway.
> ...


 Good farmm worker looking for a job  Please hire me in your state  and preferably near Canada; D for they have 85 cnadian dollars to 100 rand


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