On July 30, the China well-known e-cigarette brand AMMO officially announced the acquisition of the e-cigarette business of the international pipe brand SAVINELLI. This is also the second large-scale acquisition of AMMO in July after acquiring NOS e-cigarettes on July 6.
SAVINELLI is a well-known Italian pipe brand, founded in 1876, more than 140 years ago, is a veritable century-old brand.
In 2017, SAVINELLI launched disposable e-cigarette products for the high-end market. With ingenuity and high-quality experience, SAVINELLI harvested the first batch of adult e-cigarette consumers in China.
After acquiring SAVINELLI’s e-cigarette business, what new products will AMMO launch? What exactly is this series of acquisitions trying to do? Why does AMMO acquire two e-cigarette brands in a row in one month? This wave of operation and layout of AMMO has caused heated discussions in the electronic cigarette circle, but after careful consideration, it is not difficult to find that AMMO is making a big game.
As an e-cigarette brand under Boton Group, AMMO launched the first-generation refill e-cigarette AMMO in April 2019. With stable and reliable quality and excellent flavoring technology, it has launched more than 30 flavored cartridges within one year. According to data, the monthly sales of AMMO cartridges in May this year have risen to the second place in the industry.
After completing two rounds of major brand acquisitions, AMMO now has three independent subdivided e-cigarette brands, AMMO, SAVINELLI, and NOS, for the mainstream market and the high-end market. After this layout, the consumer group of AMMO products has expanded, and its market share is expected to increase substantially in the short term.
As we all know, offline stores have now become a battleground for major e-cigarette brands. Whether they can open up enough offline stores is crucial to the sustainable development of e-cigarette brands in the future, and multi-brand operation is the strategic layout of stores, which is a new strategy.
It is understood that within a week after the acquisition of NOS, AMMO has recruited 19 agents across the country. Whether the new product SAVINELLI can continue to attract investment can be predicted from its brand positioning and strategy. The AMMO SAVINELLI brand focuses on the mid-to-high-end consumer market. While meeting the diverse needs of consumers, it can also effectively solve the profitability problem of offline stores. Therefore, it is foreseeable that in the second half of 2020, after acquiring SAVINELLI and NOS, AMMO’s competitive advantages will gradually become prominent.
AMMO is an early offline brand, and it has also made great efforts to prevent minors from smoking. According to the employees of AMMO offline stores, AMMO will launch the “Light Up the Guardian” program across the country in August. We call on practitioners, consumers and people from all walks of life to supervise and guard minors and protect their health rights.
The relevant person in charge of AMMO revealed that after acquiring the SAVINELLI e-cigarette business, AMMO will launch a new product with a completely different appearance from AMMO’s previous series of products, and the atomization experience will be significantly improved. The new product is expected to be unveiled at the Shenzhen e-cigarette exhibition in August. In the near future, it will also open investment promotion for the whole country.
2020 is the year when the e-cigarette industry has entered a period of deep cultivation. From the beginning of July, the first e-cigarette stock, Smol International, was listed on the Hong Kong Stock Exchange with a market value of 1.7 billion, to AMMO’s acquisition of two e-cigarette brands in one month. It gave the e-cigarette industry a boost.
With the gradual improvement of relevant policies and the continuous strengthening of industry supervision, the e-cigarette industry will also enter the era of standardized operations. For regular brands that are fully prepared, the future is still promising.
