Smokefree Innotec Inc.
Executive Summary
Worldwide consumption of cigarettes per year stands at 5,500 billion.
The smokers market (regular tobacco products and substitutes
combined) totals a turnover of US $1.8 trillion p.a.
The WHO anticipates the number of smokers worldwide to increase
from currently 1.4 billion to 1.6 - 2.0 billion in the medium term,
depending on the development of the population. As a minor decline
is to be expected in the western world, due to increasing smoking bans,
major increase will occur in developing countries in Africa and the Far East.
Smoking bans and/or limitations are becoming effective on a daily basis in countries all around the world. The question as to how long it will take SFI
to penetrate all these market places is answered not only by the marketing strategy implemented but also by the amount of capital and production capacity available.
One of the corporation's founding
shareholders is Dr. Robert Wang,
a Swedish national living in Shanghai
with an impressive background in
innovative technology. He has been
spending the recent years developing microelectronic devices for smokeless
cigarettes that would satisfy even
the sophisticated smoker.
SFI is actively developing the existing patent applied for 'smokefree cigarette'
to a marketable product and schedules the launch of a commercial product
in the course of 2009.
Stock Quote
In order to achieve its goals, SFI has established
offices and teams in Shanghai, China, for R&D
and manufacturing; in Antwerp, Belgium, for
International Marketing and Distribution; and
the Main Office in Nashville, Tennessee, USA.
The company will need funding to complete R&D
(redesign, procedures for mass production); enable
its sales management to round off all European
Distribution Contracts; afford its marketing staff to
initiate in-depth Market Studies and Consumer Tests, create Publicity and Advertising by the beginning of 2009, start Mass Production of electronic parts in China and filters with aroma and nicotine in Europe and support the Launch Markets with adequate Marketing, Promotion and PR spending.
The SFI 'smokefree cigarette' is targeted for use by smokers in areas where smoking is restricted such as offices, airplanes, restaurants and other public places. SFI will facilitate those smokers, who do not want to quit and wish to continue smoking in an increasingly restrictive and sometimes hostile public environment.
Based on the percentage of smokers in each market, acceptance of the product by smokers is expected to be at 0.1%-0.5% of the smoking population, with participating smokers adapting to smoking an average of 2 to 3 SFI alternatives in the morning and 2 to 3 SFI filters in the afternoon. Assuming that all tranches of financing be completed as scheduled, SFI has developed a business model that will yield satisfactory sales revenues in the years to come.
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