Philip Morris Eying Electronic-Cigarette Market? Reports suggest talks with Ruyan
- ADVERTISEMENT -
RICHMOND, Va. -- Philip Morris, the biggest maker of tobacco cigarettes in the United States, is reportedly in talks to purchase or reach a marketing agreement with Ruyan Group, the manufacturer of the original electronic cigarette.
"Ruyan Group said that an agreement between the company and Philip Morris International Management S.A. could not be reached on matters relating to the co-operation between them on its electronic cigarettes by the end of the first and exclusive phase of negotiations," stated an article on Quamnet.com.
As the FDA has been given authority recently over the tobacco industry, the move by Philip Morris could be a carefully calculated move to gain controlling interest over the products inside the United States and abroad, according to a subsequent article from OfficialWire. The motives of the manufacturer are not clear at this point, the report says, but many speculate everything from shutting the industry down by acquiring the rights to it, all the way to quite possibly launching its own electronic cigarette product and taking it mainstream.
A spokesperson for Philip Morris USA parent company, Richmond, Va.-based Altria Group, told CSP Daily News he could not comment on a rumor or speculation.
This isn't the first time talk of the two companies negotiating has arisen. Back in June, Hong Kong-based Ruyan Group's stock rose more than 35% after the announcement that the manufacturer was negotiating with an "independent third party." That third party allegedly was determined to be Philip Morris.
An October Kraft/CSP Daily News Poll shows about 16% of the 121 respondents sell e-cigarettes in their stores.
Click Here
A spokesperson for Philip Morris USA parent company, Richmond, Va.-based Altria Group, told CSP Daily News he could not comment on a rumor or speculation.