An Overview Of The U.S. Tobacco Market
- Despite widely available data and research, media and investor continue to retain misconceptions about the tobacco business.
- Further consolidation through the Reynolds acquisition of Lorillard could provide a dynamic pricing environment, in which a Reynolds American and Altria duopoly could create above trend pricing increases.
- E-cigarettes remain a relatively unregulated industry whose growth threatens the current tobacco profit model.
- Valuations currently look stretched amongst the US manufacturers and are currently being driven by M&A activities.