Japan Tobacco International (JTI) has announced it is to purchase Zandera, the manufacturing firm that produces the E-Lites brand of e-cigarettes in UK. The company did not disclose any financial terms surrounding the deal.
JTI produces cigarette brands Winston, Camel and Mild Seven.
The move will allow the tobacco company to gain entry into the lucrative electronic cigarettes market.
"Our investment in Zandera provides the JT Group with an excellent entry-point in to the fast-growing e-cigarette category," Masamichi Terabatake, Japan Tobacco International Executive Vice President and deputy CEO, said in a statement.
"With E-Lites' well-established brand and product portfolio, we are able to offer adult consumers another important extension to our growing range of emerging and innovative products such as tobacco vapor pods (Ploom)," Mr. Terabatake added.
JTI’s key competitors Philip Morris, BAT and Imperial Tobacco have been working hard to grow market share in the category of electronic cigarettes. However, it said it would fund the acquisition of Zandera, which was established in 2009, with existing cash and debt. Zandera reported revenues of about £16 million for its full year to March 2014. JTI’s key competitors Philip Morris, BAT and Imperial Tobacco have been working hard to grow market share in the category of electronic cigarettes.
The move by JT reflects a prevailing trend in the global market: big tobacco corporations are increasing their share in e-cigarettes.
© 2014 - European Supermarket Magazine
