Cigarette industry – grim prospects?

For a number of years this blog has reported, as irreverently as possible, cigarette advertising in Germany. Germany is one of the few places in Europe where it is still possible to advertise cigarettes. The contrasting campaigns are a source of endless fascination as the brands pit themselves against one another.

However, cigarette advertising is one thing, the continuation of the industry more generally is now in some doubt. I say this after reading an article in the Economist magazine (link below). Apparently, it is fifty years since the US Surgeon General declared smoking to be a ‘health hazard’ requiring appropriate ‘remedial action’. This remedial action led to a decrease in cigarette consumption from 43 to 18 per cent in the American adult population. Still, 20 million Americans have died from smoking-related diseases since then. The current Surgeon General has declared smoking deadlier than previously thought and has promised ‘end game strategies’.

e-cigarette-brands-300x300What does this mean for the tobacco companies? Traditionally, they have found new markets, particularly in Asia. But here, also, the regulatory environment is becoming hostile. Arguably, too, the firms have not seen the e-Cigarette phenomenon coming – dominated at the moment by new firms, a selection of which are represented on the panel (left). Perhaps they have failed to understand fully what is their business? The customer craves nicotine, not tar: e-cigarettes seem to be efficient deliverers of nicotine, and less riskily. Though this may well be scrutinised closer in coming months and years.

Another approach seems to be cigarettes that do not actually burn the tobacco. Rather they heat it to deliver their nicotine payload.



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