Two smaller startups, Victory Electronic Cigarettes and FIN Branding Group, announced a merger, which comes on the heels of Victory’s purchase of Vapestick, a relatively hot e-cig brand in Europe. All told, the merged companies expect to collect more than $100 million in sales this year while saving about $10 million in costs, mostly in production, distribution, and marketing.
FIN, founded in 2011, has a relatively well-known brand and decent distribution in the U.S. Victory, meanwhile, has been in business since 2010 and touts a smooth supply chain and toehold abroad. But here’s the key thing: None of these young companies knows much about the old-fashioned cigarette business. Given that, joining forces may be a savvy way to survive—or at least try to—as established tobacco companies turn their attention to products that don’t require matches