Vapor Corp. designs, markets, and distributes electronic cigarettes, vaporizers, e-liquids, and accessories under the Krave, Fifty-One (also known as Smoke 51), VaporX, Hookah Stix, Alternacig, EZ Smoker, Green Puffer, Americig, Fumaré, and Smoke Star brands. The company also designs and develops private label brands for its distribution customers. Third party manufacturers manufacture the company’s products to meet its design specifications. It markets its electronic cigarettes as an alternative to traditional tobacco cigarettes. Electronic Cigarettes The company offers disposable electronic cigarettes in multiple sizes, puff counts, styles, flavors and nicotine strengths; rechargeable electronic cigarettes that use replaceable cartridges (also known as ‘atomizers or cartomizers’); and rechargeable vaporizers for use with either electronic cigarette solution (e-liquid) or dry herbs or leaf. Disposable Electronic Cigarettes: It features a one-piece construction that houses all the components and is utilized until the nicotine or nicotine free solution is depleted. Rechargeable Electronic Cigarettes: It features a rechargeable battery and replaceable cartridge (also known as an ‘atomizer or cartomizer’). The atomizers or cartomizers are changed when the solution is depleted from use. Vaporizers: It features a tank or chamber, a heating element and a battery. The vaporizer user fills the tank with e-liquid or the chamber with dry herb or leaf. The vaporizer battery could be recharged and the tank and chamber could be refilled. Kits and Accessories The company’s electronic cigarettes are available in kits that contain everything a user needs to begin enjoying their ‘vaping’ experience. In addition to kits that the company sells replacement parts, including batteries, refill cartridges, or cartomizers that contain the liquid solution, atomizers, tanks, and e-liquids. Its refill cartridges and e-liquids are available in various assorted flavors and nicotine levels (including cartridges without nicotine). In addition to its electronic cigarette and vaporizer products, the company sells an assortment of accessories, including various types of chargers, including USB, car, and home, such as carrying cases and lanyards. Distribution and Sales The company offers its electronic cigarettes and vaporizers and related products through its online stores, to retail channels through its direct sales force, and through third party wholesalers, retailers, and value-added resellers. Retailers of the company’s products include small-box discount retailers, big-box retailers, gas stations, drug stores, convenience stores, tobacco shops, and kiosk locations in shopping malls throughout the United States. It also offers its electronic cigarettes and related products through its direct response television marketing efforts. Tobacco products, primarily cigarettes are sold in approximately 400,000 retail locations. Business Strategy The company’s business strategy utilizes its ability to design market and develop multiple e-cigarette brands and to bring those brands to market through its multiple distribution channels. Through its multi-brand strategy, the company develops products, packaging, accessories, and electronic cigarette models that appeal to multiple demographic segments. The company’s strategy consists of various major elements, such as developing new brands and engineer product offerings; investing in and utilizing its new and existing brands through marketing and advertising; increasing its presence in national and regional retailers; expanding its brand awareness through its Web presence; introducing its products to the consumer through increased infomercial broadcasts; developing continuity programs for its end user customers; scaling its distribution through strategic resale partnerships; and aligning its product offerings and cost with market demand. Intellectual Property The company has a patent pending for a soft-tip electronic cigarette filter, which resembles the tactile experience of a conventional tobacco cigarette in a user’s mouth. It has a patent pending for a universal fit mouthpiece that could be used in conjunction with the battery section of various other electronic cigarette brands, allowing users of competing electronic cigarette products a way to try and transition to its cartridges. The company also has a patent pending on a new configuration for the air flow sensors used in electronic cigarettes. In addition, the company has a patent pending for a biometric fingerprint lock sensor that could be used in vaporizers. The company owns trademarks on certain of its brands, including Fifty-One, Krave, VaporX, Alternacig, EZ Smoker, Green Puffer, Americig, Hookah Stix, and Smoke Star brands. Government Regulation The company’s electronic cigarettes are subject to being classified as ‘tobacco products’ under the Family Smoking Prevention and Tobacco Control Act of 2009. Competition The company competes with Lorillard, Inc.; Altria Group, Inc.; and Reynolds American, Inc.
vapor corp (VPCO:NASDAQ CM)
3001 Griffin Road
Dania Beach, FL 33312
|Altria Group Inc||$50.66 USD||+0.61|
|Electronic Cigarettes International Group Ltd||$0.52 USD||-0.043|
|Lorillard Inc||$70.23 USD||+0.37|
|Reynolds American Inc||$74.11 USD||+0.81|
|View Industry Companies|
|Price/Cash Flow||NM||Not Meaningful|
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