Are Tobacco and E-Cigarette Companies Making Money?

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Oct 23, 2014

Over the years, the world has had to put up with tobacco, even though many people know that cigarette smoking can be harmful to one’s health. Some leading tobacco companies residing in the US have had an influence on smokers over the years. Apart from selling traditional cigarettes to the public, they spent millions in advertising their products in the hope of making big bucks.

Japan Tobacco Company

Japan Tobacco Company (OTCPK:JAPAF) is the top tobacco company in the country. This company carries out operations by functioning as a public company where the government of Japan owns about 33% of the company’s shares. Before Japanese tobacco companies can raise prices, the government has to give its approval.

Japan Tobacco has a very strong presence in the Japanese cigarette industry and controls about 60% of the market. So far, the company is reaching new frontiers in the cigarette market by stretching its business internationally. It sets up operations in Russia and so far owns about 35% of the market share. Apart from Russia, Japan Tobacco is a leading cigarette seller in Ireland, Sweden, Austria, Tanzania, Sudan, Taiwan, Gambia, Jordan, Guinea, Iceland, Georgia, the Maldives, Mongolia and Kyrgyzstan. In addition, Japan Tobacco is operating in the UK, Italy, Nigeria, Turkey, South Africa, Latvia, Malaysia, Lebanon, Mozambique, Lithuania, Greece, Latvia, Ukraine, Romania, Kazakhstan and Azerbaijan. So far, Japan Tobacco is moving ahead on the international market while defending and holding its hard-earned market position at home.

Sales for Japan Tobacco grew by 13.18% and operating profits went up to 21.8% since 2014 FY. The international market that the company is in grew by 25.7% in sales, which reflects how well the company is performing overall at home and internationally.

E-cigarettes

As the tobacco industry grows, so does the e-cigarettes market as well. Some larger e-cigarette companies are taking over smaller ones in an effort to own a bigger market share. Although e-cigs are into strong competition with tobacco, still they are doing exceptionally well on the market and many tobacco smokers are switching to e-cigs because of the lower risk of getting life-threatening sicknesses. Some great electronic cigarette reviews can be found at Smoke Tastic.

Altria Group Inc. (NYSE:MO) remains bullish on the New York Stock Exchange because of challenges facing the e-cigs industry as well as competition from other tobacco products. For some time now, the company has been placing a higher price on its products in an attempt to keep profits growing steadily. Altria’s dividend yield is 4.60% with stocks climbing to over $40, which is a reflection of how well the company is performing.

Altria’s sales in 2013 increased by 1.1% and carried a volume growth of -4.1%. Since 2014, Altria’s revenue increased by 0.8%; this figure is expected to continue climbing throughout the rest of the year. The latest dividend payment was $0.52, which is an upward climb of 8.30%.

Lorillard Inc. (NYSE:LO) at the close of trading was standing at $59.65, which signifies a drop in the bucket of -0.52% with volume shares of over 1.93 million and the company’s 2.07 million shares is a reflection of the average share volume. In the past, Lorillard’s market capitalization went down to $21.59 billion; and shares price dropped to 11.36%. However, since Lorillard began selling its main brand known as Newport as well as introducing several new products to the market, the company portfolio climbed to a dominant position in the e-cigarette market.

Liv Electronic Cigarettes

An announcement was made recently that Liv Electronic Cigarettes was in partnership with Mr. Checkout. This partnership came about in an attempt for Liv to meet demand and supply that pressures the cigarette industry from time to time.

Liv has a reputation of having one of the best e-cig products on the market mainly because of three reasons:

Flavoring: Liv makes sure to provide e-cigarette smokers with some the best flavors in the business. They strive to make each puff a memorable one by each user of the product. The company is successful in finding a balance whereby it discourages its cigarette flavors from possessing an overpowering effect on smokers, especially if someone is using the product for the first time. The company reasons that an overpowering effect can cause more harm than good to the e-cig user. Therefore, it found a balance where the e-cig brand is made just right so that a smoker can feel the taste of the flavor without having that overpowering effect.

A flavor that Liv delivers to the public is the 24K Tobacco, which cost in the region of $9.99 to $26.97. This e-cig comes with no battery so that a user does not have to worry about recharging it.

Another great flavor that is doing well on the market is the Liv Sampler. This packet holds five e-cigs in it and cost about $39.95.

The Berry Breeze Liv e-cigarette cost from $9.99 to $26.97. This e-cig consists of a mixture of flavors made from mixed berries, hibiscus and a tinge of lemonade to go with it.

The Blue Berry Buzz is made from freshly picked wild berries. It carries a taste of sweetness that makes each puff feels like having a feeling of exuberance internally.

Vapor: The e-cig products that Liv Electronic Cigarettes produce are geared to give e-smokers the experience of smoking a real cigarette. According to reliable sources, the Liv Company offers top e-cigs in the disposable market today.

Throat hit: Some companies make their electronic cigarettes with the feeling that the person using them will not experience any feeling whatsoever. However, this is not the case with Liv. Liv’s e-cigarettes are of some of the highest standard in the business, which makes each user of their products experience a difference in their throat and lungs. This feeling is often called a throat hit.

So far, Liv is selling its product at competitive prices when compared with other e-cig companies in the market that are not delivering reliable products to consumers. In addition, the price disposable brand of e-cigarettes that Liv offers to the smoking public is just right for buyers of the product, according to some public opinions gathered by experts in the business.

Tobacco and e-cigarettes companies are reaping great rewards in the market place. So far, they are reaching more consumers whom are interest in their products. In the future, investors will have their hands full because of the financial benefits these tobacco and e-cigs companies have to offer.