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Re: newmedman post# 1088

Tuesday, 08/27/2013 5:04:10 PM

Tuesday, August 27, 2013 5:04:10 PM

Post# of 62131
Nice post, glad to see people doing actual research, and site sources.

I think VPCO has a very strong future ahead. As you stated they have a large product line, I believe the largest int he market ( at least the U.S. Market) According to a statement by the CEO during an interview. I believe it is this video

Having this large product line has the benefit that the various products are all marketed in different ways, to different demographics, like you were saying about Vapor X; this similar to the way Honda and Acura are both Hondas, but appeal to different people etc. So essentially they have diversified and thus protected themselves in a way. it is also my understanding that they have a fairly large % or Market share, however the data I saw on this was old and I don't know how it has changed since then.

I disagree however about the buyout potential going away. My reasoning is that, if they do indeed hold a large Market share, a big company will always want to claim that share, and would be willing to buyout with he promise of larger margins for years and possibly decades to come. There could also be a lot of interest in buying out Vapors I.P. as they have pioneered a lot of tech in the Ecig market.

I think Vapor has been in long enough and has established enough market share that they will not just be drowned out by over saturation. My opinion on this matter comes from he fact that I am a Graphic designer and work in Convenient store advertising, as well as my personal observations; as people are well aware, Cigarettes are a huge source of C-Store revenue, so trends involving C-stores are good indicators of the overall market.

Out of all the brands I make Ads for, I have made the most for Krave brand and Blu Brand. I live in NC, which is where Lorilard (i.e. Blu) is based, so it makes sense to advertise them a lot, however VPCO is Florida based, and I would not expect to make tons of local advertising, unless they are selling well. My personal observations have been that many E-cig displays that I have seen are 1/3-1/2 filled by Krave brand.

Also I have stated before that the company I work for recently shipped out a large order of advertising materials, to the WilcoHess Stores, which is over 300 or 350 stores. This Advertising was for both NJOY (the largest distributor i.e. Market Share) and Krave King. Not to mention, it is possibly going to be made an inventory item, and uses a decal pricing system, indicating that they plan on running the ads for an extended period of time. I imagine the revenues from this large distribution deal will shine nicely on Q3. Anybody who has a Wilco or Hess gas station near them can confirm that I am indeed telling the truth.

I would say that my biggest concern would be shady business practices on the behalf of the big boys. Possibly forcing distributors to refuse selling VPCO brand, with the threat of refusing to allow those distributors to sell their Cig brands. Other than that I think they have a pretty secure future.
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