Tuesday, October 22, 2013

Lorillard Hedge Fund #2 Buys Sky e-cigs

Stop Smoking Greenbsboro - Lorillard Tobacco has closed on a deal to buy Skycig, a British e-cigarette
maker, for $49 million according to the Los Angeles Times.  The North Carolina-based tobacco giant has expanded more aggressively into the newest nicotine delivery trend than its larger rivals. Last year Lorillard paid $135 million to buy Blu eCigs.

“It has been Lorillard's mission to be first and best in the electronic cigarette category,” Chief Executive Murray Kessler said in a news release. “Our mission is now a global one.”

While from a pure business perspective, this makes total since.  Tower Records wasn't creative enough to solve their mp3 problem.  Big Tobacco has a viable hedge fund in the e-cigarette market.  Unfortunately, when you consider who is now in charge of manufacturing, advertising and marketing and stack that on the fact that Big Tobacco has functioned without any real ethics since the beginning, all that's really happened here is the music changed, but we're still dancing with the Devil.