$AHII- e-cig newcomer American Heritage International Inc. (OTCBB:AHII) has just added two states to the number where its premium product can be purchased. The young company promised it was going to expand after jumping into the game on a small scale in - and this isn't a misprint - January of this year. With today's addition of Nevada and Illinois, AHII is now giving MO and LO a run for their money in eleven states. Thirty-nine more to go.
Don't sweat it if you haven't heard of the company yet, as most investors haven't. It didn't exist in its present form until the fall of last year, and didn't start driving revenue until the beginning of this year. That's when it launched its version of an electronic cigarette... or e-cig, for short. Sure, the entire e-cig industry was only worth $1 billion last year, versus the tobacco-cigarette market worth close to $100 billion (estimated) annual. But, with the e-cig market projected to be worth $6 billion by 2015 - and projected to overtake the tobacco cigarette market by 2047 - a little company like American Heritage International really is positioned for stronger growth than the likes of Altria Group and Lorillard.
American Heritage, in fact, may be better positioned to capture a piece of that growth than any other e-cig manufacturer. Unlike the vast majority of e-cigs that have hit the market so far, AHII electronic cigarettes actually look like cigarettes rather than a min-flashlight or a ballpoint pen. In a recent comparison test of the American Heritage product to other e-cigs, nine out of ten smokers said they preferred the AHII product. That explains its strong initial acceptance so far where it's been available; the inaugural order was sold out in a matter of weeks.
Bottom line? AHII is very much a right time, right place prospect that truly could prove to be a disruptor for big tobacco icons like Altria Group and Lorillard. Both have a hand in the electronic cigarette market, via subsidiary brands. LO owns the company that owns Blu (of Jenny McCartyjy, and MO finally got into the game with its MarkTen brand. It feels like a begrudged entry into unfamiliar territory from the "bigs", however, which is how and why a smaller player like American Heritage could beat big tobacco at its own, changing game. With nearly 80% of the country left to tap into - and probably 95% of smokers left to educate and inform - AHII's best days are ahead of it.
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