About Us

Tobacco Insider is the leading authority in delivering Tobacco Industry insights, analysis and projections from the people in the know. We provide bespoke advisory services to institutional investors, industry analysts and consulting firms. You can click here to request a consultation session with one of our experts.

Research reports and lounge membership offer access to our proprietary assessments, analyses and projections. We also collaborate with the leading expert networks including GLG and Guidepoint.

We recommend every Tobacco Industry stakeholder and enthusiast to follow our Twitter feed and visit our Insights section to stay informed about the Industry.

Tobacco Insider: Our Mission

Transformation of the Tobacco Industry puts large sums at stake. Who will win, who will lose? Analysing market developments and projecting the Industry’s future necessitate in-depth industry knowledge and expertise more than ever. We know how to separate the facts from the fantasies preached by the tobacco executives and uninformed market observers. We know what consumers are looking for. We know which technologies and products are better positioned to satisfy the omni-present and ever-growing consumer demand. As a team, we bring an unmatched level of Tobacco Industry expertise, gained through more than 40 years in global leadership roles at leading tobacco companies, as well as significant experience in management consulting and investment management. And our mission is to help our clients make substantial improvements in their decision-making and performance.
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We know what we are talking about and our only interest is helping our clients.

As a team, we bring more an unmatched level of Tobacco Industry expertise, gained through more than 40 years of tenure in global leadership roles in leading tobacco companies, as well as significant experience in top-management consulting and investment management. And our mission is to to help our clients make substantial improvements in their decision-making and performance.

Interested to learn more about the Transformation of the Tobacco Industry? The rest of our Home Page provides a preview of the scope and challenges of this complex transformation.

Tobacco Industry Today

Interested to learn more about the Transformation of the Tobacco Industry? Here is a preview.

The Tobacco Industry is in a broad transformation driven by the replacement of traditional cigarettes by Next Generation Products and Beyond Nicotine Products.

Development, assessment and commercialization of these products are reshaping tobacco into an industry at the intersection of packaged goods, consumer electronics and pharmaceuticals. This product shift, coupled with technological advances and changing consumer expectations, demand a complete operational and organizational transformation. In today’s technological world, every consumer industry is undergoing a similar transformation. However, what the tobacco industry is experiencing is a perfect storm of multi-dimensional and concurrent transformation – probably, the biggest transformation in the history of consumer goods.

Transformation is challenging for the tobacco industry which has been focused on perfecting its practices (i.e. efficiency in delivery) due to the decades-long stability in its business environment. However, the industry’s traditional assets and traditional business practices are quickly losing relevance.

Dozens of pain points exist in this transformation, which can be categorized into eight groups:

R&D focus and innovation-driven business model (long product development cycles and patent protected products)

Customer acquisition and conversion: educating the 1.1B smokers in the world and helping them adopt to a new generation of products (“moving the consumer base forward”)

Manufacturing transformation – from packaged consumer goods to pharmaceuticals & electronics

Process and infrastructure development specifically, in the area of engaging with each smoker on a one-to-one basis (including the digital transformation of consumer-facing infrastructure)

Organizational skills – talent acquisition in new business areas, transforming the existing talent, counselling out the workforce not fit for transformation

Exiting the traditional assets – maximizing the terminal value of the former “industry jewels” (e.g. cigarette brands, manufacturing sites, supply chain networks, etc.)

Regulatory/fiscal optimization – striving for an operating environment that facilitates the transformation while preserving and improving industry’s profitability

Adjacent businesses – expanding into wellness/well-being and healthcare segements with an immediate focus on cannabis

A Huge Potential to be Unleashed

It is a treacherous path, but we know what it takes to unleash the next growth potential and which business are better positioned to get there

If you take a step back from the daily market moves and adopt a long-term view, you will quickly realize that tobacco companies are among the all-time best performers – outpacing the S&P500 by a significant margin.

But, past performance is no guarantee of future results. Can the tobacco companies deliver superior investment returns for the patient investors? By when? By how much? More importantly, how? What could create value appreciation for a business whose core market is shrinking by 3-4% annually?

The answer is simple: The underlying demand for recreational/functional substances still exists and continues to grow.

Tobacco companies need to re-invent themselves to satisfy the consumer demand by selling products other than cigarettes. The risk: another player (one that is invisible even to the most trained eye) may get there faster than the incumbents.

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Disclaimer: The content in our Market Pulse section is/shall not be construed as investment advice. It is for informative purposes only and does not take into account the individual needs, investment objectives and specific financial circumstances. Any action taken upon the information in our Market Pulse section is strictly at the reader’s own risk. We assume no responsibility or liability for the actions taken. Moreover, we also assume no responsibility or liability for any errors or omissions in our content – which is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness or timeliness even if we only depend on the infromation sources that are believed to be accurate.

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