BAT May Beat its Electronic Cigarette Rivals According to Citigroup

Vype electronic cigarette has only been launched recently by the British American Tobacco or BAT.  Although focusing now within the UK market, BAT stated that it has plans to move quite quickly along with electronic cigarettes that are swiftly dominating the world.  BAT intends to be at the top of this emerging industry.

Citigroup Believes So

Citigroup, a multi-national financial services company based in Manhattan, believes that BAT is primed to actually seize the leading position in the market of next generation nicotine products.

Right now, BAT might still be known for its popular cigarette brands, Lucky Strike and Dunhill, but according to Citigroup, this tobacco firm will be immensely and significantly driven by innovation to pursue its electronic cigarette goals.

Vype To Do Well

In a present market that remains unregulated,  Vype electronic cigarette brand is foreseen by Citigroup to be able to obtain excellent market performance. Nonetheless, the American corporation says that it is not in this present range of products that BAT will excel more. Instead, Citigroup sees that BAT will really beat and put a distance from its rivals in terms of the products it will innovate in the future.

Vype is currently available in disposable versions e-cigs, but the performance, experience and look it offers are definitely close to those of electronic cigarettes.  It is compact and light and with futuristic design that is more modern compared to the design of other available products.

Vype also contains ECOpure e-liquid that is made with the fewest possible ingredients in order to maintain purity and simplicity.  ECOpure ingredients are supplied by suppliers that are carefully selected in order to meet pharmaceutical standards in Europe.  Vype is available in Regular, in Bold and in Menthol flavors.

MHRA Medicinal Licensing For Electronic Cigarette Products

Considering UK’s MHRA announcement regarding the classification and licensing of these devices and products as medicines, Citigroup also said that it expects the tobacco giant to also launch two new additional products licensed as medicines within the next two years.  Britain’s health agency seems to be firm in its decisions and plans that electronic cigarette market players would really need to abide by and follow. BAT, being a big company, can certainly afford the high costs of licensing, unlike other smaller companies. Due to this, many products would be unlicensed come 2016, but BAT will remain and even prove that it stands firmer in the industry with the new licensed products it will offer.  Due to the situation that Citigroup is expecting to happen with regard to product licensing, it sees BAT to gain first move advantage over its rivals in the industry.

Citigroup also recommended that one of these two new products that BAT will release will be a stick that is shaped like a real cigarette and will contain nicotine aerosol spray that will have an approximate sale of £100m-£150m based on initial capex.

BAT’s Improving Innovations

Apart from the release of Vype, BAT has also made it in the news about upping and improving its innovations on conventional cigarettes.  It announced about adding and using capsules so that light-tasting cigarettes will have stronger tastes and high tech filters.

The 10% share of the electronic cigarette market in UK will add 1% to the total sales from Western Europe, but Citigroup says that BAT intends to go beyond this. BAT eyes a £40 price target.

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