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TOBACCO BUSINESS INTERNATIONAL
JANUARY/FEBRUARY 2015
H
eld byWells Fargo,November’s
vapor industry conference
drew dozens of executives and
investors.
From the FDA’s proposed deeming
regulations to the growth of vapor
product sales and a shift from cig-alikes
to vapor/tanks/mods (VTMs), the
topics of discussion at this year’s vapor
industry conference were many and
varied. Wells Fargo’s Bonnie Herzog led
off the meeting, noting that her research
estimates that the retail vapor industry
topped $2.5 billion in 2014, a jump of
about 40 percent from last year’s $1.8
billion.
Herzog also noted that while there has
beenmerger andacquisitionactivity in the
sector, the industry still boasts hundreds
of companies competing in the U.S. and
globally. “We expect consolidation to
continue as compliance costs increase
and as the category continues to be
embraced by entrepreneurs and Big
Tobacco,” she told attendees.
Ready, Set…Innovate
Representatives from both factions
who participated in the event noted that
innovation will play a big role in driving
the industry’s growth. Representatives
from pure-play vapor companies like
Logic and Mistic, which established
themselves as leading brands relatively
early on, discussed launching innovative
products to keep up with the evolving
category.
“With our new Logic Pro Advanced
Vapor Systems, we have really rounded
out our portfolio,” Miguel Martin,
president of Logic, told attendees.
“When we looked at the landscape of
open-system [vapor devices], it was
important to us that we give consumers
not what everyone else had, but where
we believe they are going.”
Making the Logic Pro system
compatible only with the company’s
pre-filled, vacuum-sealed, e-liquid,
disposable capsules enables the company
to ensure quality and consistency,
explained Martin. “As we progress in
this regulatory environment, we think
that having this type of composition and
construction versus loose liquid will be
very important.”
Mistic, which already offers the Mistic
and Haus lines, is also in the process of
introducing a new product, noted Todd
Millard, COO. After early success with
its electronic cigarette line, Mistic broke
into the personal vaporizer product
market with the launch of Haus in April
of 2014. Now the company has a new
debut.
“We placed a big bet on open systems
and now the next bet we are placing is
the Mistic Bridge, a transition from a full
vapor unit to a cig-alike unit,” explains
Millard. As the name suggests, Mistic
Bridge is meant to fall somewhere
between the company’s e-cigarette
(Mistic) and personal vaporizer product
(Haus) on the vaping device spectrum. It
is a refillable tank, similar to those used
in personal vaporizers, but which fits
onto cig-alike batteries like a cartridge.
“You can put whatever liquid you want
in there,” says Millard, who says the
device will retail for $14.99. “If you are
a Mistic consumer you can continue to
choose to buy Mistic e-liquid…or not.
This is a consumer need that is not being
met. The Mistic Bridge is compatible
with existing products like blu and
MarkTen.”
The product represents a departure
from the traditional “razor blade” model
that most e-cigarettes rely on—selling a
device at cost or near-cost with the hope
of capturing a repeat customer for blades,
or, in this case, cartridges.
Both Logic and Mistic are pure-play
Takeaways From the
2014 E-Cig Forum