A decade after going their separate ways, the two tobacco giants announced this week they are considering a merger.
Only problem: The two main sectors Altria is eyeing for growth — vaping and cannabis — are new fields beset by regulatory challenges. Electronic cigarettes, in particular, are already hamstrung by investigations, litigation and accusations of intentionally hooking underage kids on addictive nicotine pods.
But Moody's analyst Roberto Pozzi said the combined company could use its heft to invest in new products, generate more profit and better manage the risks that come with entering new markets.From 2013 to 2018, cigarette sales volume slid 9%, with 5.3 trillion cigarettes sold around the world last year, according to data from market research firm Euromonitor International. But thanks to price hikes, global cigarette sales revenue grew 15% in the period, totaling $713.66 billion in 2018.
Tobacco giants are taking notice of shifting consumer tastes. PMI has carefully overhauled its image with a new mission: "designing a smoke-free future." Since 2008, PMI has invested more than $6 billion on iQOS, its heated tobacco device and other next-generation products.Sebastian Kahnert | picture alliance | Getty Images
In the USA, in the 1920's they made alcohol illegal. That didn't work out so well, did it? I doubt this will.
That's why E-Cigs are the future.