Vaporin, Inc. Continues to See Increased Sales Growth as the Vaporizer Segment Surpasses E-Cig Sales October 27 2014
October 23, 2014: 08:38 AM ET www.money.cnn.com
Vaporin, Inc. (OTCQB: VAPO), a distributor and marketer of vaporizers, tanks, mods (VTM's) and e-liquids products, today announced the Company continues to see a strong increase in sales and revenue as VTM's and the e-liquids industry exceeded electronic cigarette sales for the first time by half a billion dollars.
According to Wells Fargo Securities, VTM's now contribute more than $1.5 billion to the overall electronic vaporizer market in the U.S., with electronic cigarettes accounting for only $1 billion. Domestically, the combined electronic vaporizer market is now estimated at $2.5 billion -- and growing. The Company saw this trend and has focused on VTM's and e-liquids rather than e-cigarettes. This foresight has resulted in strong revenue growth as Vaporin sales coincide with the overall vapor industry trend.
Industry retail vape store sales have grown to $900 million. The Company has aggressive plans to expand on their existing model by continuing to acquire already established retail vape stores in addition to opening brand new locations. The Company recently acquired "The Vape Store," a chain of retail vape shops in Florida, adding $2.6 million in revenue and is opening the Company's fifth vape shop in the coming weeks.
"VTM's are quickly gaining in consumer confidence, with electronic cigarette users moving towards these more powerful, tank-style devices," said Bonnie Herzog, Managing Director and Senior Beverage and Tobacco Analyst at Wells Fargo Securities. "In addition to the experience provided through them, open system vaporizers are also a lower-cost vaping option over the long-term. We have found, for instance, that the weekly spend for an open system user is about 30% less than that of an e-cigarette user."
Vaporin, Inc. is experiencing increased orders from new convenience stores along with repeat business from existing shops. Wells Fargo reported a 21% increase in convenience store vapor sales and a 57% increase in repeat vapor purchases in Q3 2014. Bonnie Herzog also reported that convenience stores are beginning to increase shelf space for vapor products by removing e-cigarettes.
Vaporin has also been experiencing a significant increase in online sales. This has been due to a very well received continuity program and new customer orders, which coincides with the overall online vapor sales growth. In addition, the Company attributes some online sales growth to the introduction of their new Cannabis vaporizer line to be used for dry herbs, oil, and wax.
Scott Frohman continued, "As the overall vapor industry continues to grow, we, too, are experiencing significant growth to coincide with the trend. We have made certain strategic moves over the past few months to capitalize on the vapor market. Our team is confident in our business model and believes Vaporin, Inc. is well positioned to capture our share of this rapidly growing market."
About Vaporin, Inc. Vaporin is a distributor and marketer of vaporizers and e-liquids products. The Company focuses on a multi-pronged revenue model comprised of convenience store sales, online retail continuity programs, vending machines, and the acquisition and opening of brick and mortar retail stores. Vaporin's innovative technology offers the look, feel and taste of traditional cigarettes without any tar, tobacco, smoke and odor. As an alternative to traditional cigarettes and e-cigarettes, Vaporin is offered in a variety of kits ranging from those for beginner vapor users up to high-level experienced users. The unique Vaping Pens product line and Made-In-USA E-Liquid is what makes Vaporin one of the emerging brands in the market. Vaporin is not just an alternative to traditional smoking, but a lifestyle