Big tobacco has hit upon a brilliant strategy. Reynolds American Inc, maker of Camel cigarettes, is planning to buy a company that's helping people stop smoking
The manufacturer of cancer sticks is apparently in talks to buy Swedish maker of nicotine gum Niconovum AB. Now what could that mean?
Niconovum says its products are designed to give people better control of their cravings. What's in it for the tobacco company. Cigarette sales around the world have
fallen 10%, and while the tobacco companies are still making profits off making people sick, it's a declining market. Buying Niconovum would give Reynolds access to the nicotine products market, like special chewing gum.
And because it will keep pushing cigarettes, it will be able to service its customers at both ends.