Unlike sector peers such as Philip Morris, British American Tobacco has been at the forefront of the e-cigarette revolution. Indeed, its Vype brand has been on sale for over a year and the company has reported encouraging demand for its new product. Although sales numbers are likely to be considerably smaller than those of traditional tobacco products for some time to come, e-cigarettes remain a growing industry that is already worth $1 billion worldwide. While fragmented at present, British American Tobacco looks well placed to gain a foothold in the industry and to begin developing the same levels of customer loyalty and brand loyalty that are present with its tobacco brands.