Lorillard Inc. (LO), Reynolds American, Inc. (RAI): E-Cigarettes to Light Up Tobacco Stocks

Altria Group Inc (NYSE:MO) is the market leader in smokeless tobacco products, but neither company currently has an e-cigarette in the marketplace. That is about to change, as Altria Group announced in April that its Nu Mark subsidiary will roll out an electronic cigarette in the second half of this year. Altria’s entry into the market has the other players concerned.

Foolish assessment

The market for electronic cigarettes looks set to become the next growth area for the tobacco giants. Lorillard and Reynolds American, Inc. (NYSE:RAI) have a head start on Altria and Philip Morris, but the latter’s financial strength and marketing muscle can allow them to catch up quickly. As more smokers embrace the non-smoking trend, look for them to follow the example and embrace electronic cigarettes.

Mark Yagalla has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article E-Cigarettes to Light Up Tobacco Stocks originally appeared on Fool.com and is written by Mark Yagalla.

Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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