Every cigarette company from Altria Group Inc. (NYSE:MO) to Victory Electronic Cigarettes Corp. (OTCMKTS:ECIG) will want to take notice of this morning's news from American Heritage International Inc. (OTCBB:AHII) - the young startup's electronic cigarettes now have something else great going for them. As such, it just got a little easier for smokers to justify dumping traditional tobacco cigarettes like those made by Altria (like Marlboro) in favor of e-cigs....
...not that it wasn't already pretty easy to do so. The fact that electric cigarettes don't leave tar and other burning carcinogens in smokers' lungs is pretty well documented. That's why sales of e-cigs are expected to explode from last year's $1 billion to $3 billion this year, and that's why sales of electronic cigarettes are expected to surpass tobacco cigarette sales by 2047.But, that's not where the upside of AHII stops.
Even within the electronic cigarette industry alone, American Heritage International is a stand-out. The company has known for weeks now (per consumer testing) that its electronic cigarettes were preferred among its competitors like Victory Electronic Cigarettes, MarkTen (owned by Altria), and NJOY, just to name a few. Well, per this morning's press release, AHII e-cigs now last longer, becoming more and more like a tobacco-based cigarette without all the health hazards and social frustrations.
The upgrade adds to an already-compelling product. Of all the electronic cigarettes out there, American Heritage International's are the only ones that actually look and feel like a real cigarette, as opposed to a ballpoint pen or a mini-flashlight that most e-cigs appear to be at first glance. Consumers love the traditional look and feel too.
With all of that being said, what investors need to know about AHII more than anything else at this point is that the company has only been around for a few weeks, and its high growth phase is just beginning. As of the beginning of April, American Heritage International is still only available in eleven states. However, that's eleven more than its product was available in December. Yes, AHII is still very much a ground-floor opportunity, and though it may be a few years before it causes significant problems for a "big tobacco" name like Altria or Philip Morris, it's not too soon for it to start making problems for a smaller e-cig newcomer like Victory Electronic Cigarettes. Moreover, given how well-received the company's products have been in locales where they've already been launched, today's announced improvement is yet another reason AHII shareholders could be rewarded soon.
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For more on American Heritage, its investor presentation PDF offers the most insight. The corporate website can be found here.
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