62
TOBACCO BUSINESS
JANUARY/FEBRUARY 2014
A top seller
at Walmart, this
e-cigarette brand
couples a savvy
market strategy with
value pricing for a
winning combination.
By Jennifer Gelfand
A
mid the chaos of players
crowding into the e-cigarette
category, Ballantyne Brand’s
Mistic e-cigarette is emerging as one
of the more serious contenders. In
November, Mistic scored the No. 1
spot in its category at Walmart, the
world’s largest retailer, according to data
from Nielsen’s Brand Rank Report.
While such rankings continually shift,
particularly in the musical chairs game
of e-cigarette brand market share,
Mistic consistently ranks among the
top three in many large chains.
So what makes Mistic stand out?
As one might expect from a lead seller
at Walmart, value pricing is a big part
of the product’s appeal. Our last issue
inadvertently misquoted Ballantyne
Brands CEO John Wiesehan, Jr.
on an impossibly low price for the
company’s disposable e-cigarette that
we won’t repeat here (
TB
apologizes
for the error), but the actual price
is nearly as impressive: $4.99. That
sticker price is a full $3 less than that
of several competing brands. Mistic’s
rechargeable products are an equally
economical option, starting at $14.99,
with refill cartridges priced at $14.95
for five or $19.99 for 10.
Mistic has also won kudos for
eschewing typical tobacco marketing
tactics in favor of a more consumer-
products approach. “We like to think
we are the retailers’ e-cigarette,”
explains Wiesehan, who says his
company offers margins of 40 to 50
percent on its products and prides itself
on Mistic’s taste and value equation.
“We have a great taste profile, promote
to consumers at very attractive price
Mistic:
Market Maven
