E-Cigarettes Just Passed The $1 Billion Sales Mark

E-Cigarettes Just Passed The $1 Billion Sales Mark

ROB WILE AUG. 28, 2013, 1:31 PM 1,369 1

A shop owner, who gave his name as Yohan, uses an electronic cigarette near a poster which reads “electronic cigarette, free trial” in his shop in Nice June 7, 2013. France intends to ban electronic cigarette smoking in public places by imposing the same curbs enforced since 2007 to combat tobacco smoking. E-cigarettes is officially a $1 billion per year business. This is according to Wells Fargo data cited by V2 Cigarettes, a major online electronic cigarette retailer. Sales in brick and mortar stores are now at $700 million annualized, while online transactions are expected to tick at least $500 million.  “When combined with online sales, the industry has now exceeded $1 billion for the first-time ever, with the consumption of e-cigs likely surpassing that of traditional cigarettes in the next decade,” Wells Fargo’s Bonnie Herzog said. Here’s V2’s full release:

Miami, FL – V2 Cigs (www.v2cigs.com), the worldwide online leader in electronic cigarettes with over 1 million customers, today announced that, for the first-time, the electronic cigarette category has surpassed $1 billion in annual sales across both traditional and digital retail channels. Wells Fargo Securities also projects total 2013 retail sales to reach a record $1.7 billion by the end of the year—an increase of at least 240 percent, respectively, over the previous year’s estimated $500 million mark.

“Conservative data indicates that traditional electronic cigarette retail sales on an annualized basis is $700M,” said Bonnie Herzog, Managing Director and Senior Beverage and Tobacco Analyst at Wells Fargo Securities. “When combined with online sales, the industry has now exceeded $1 billion for the first-time ever, with the consumption of e-cigs likely surpassing that of traditional cigarettes in the next decade.”

E-cig retail sales through online channels will total an estimated $500 to $625 million in 2013. As America’s largest volume online retailer of electronic cigarettes and the third-largest overall electronic cigarette company in the world, whether on or offline, V2 will own at least 20 percent of the total online market with year-over-year sales doubling in 2013 to well north of nine figures.

Established in 2009 as an online-first retail brand, V2 announced a partnership with National Tobacco Company (NTC) in April of this year to distribute their world famous e-cig products to traditional retail outlets across the nation.

With more than one million customers spread evenly across the country, V2 is perfectly positioned to drive online buyers into traditional retail locations. Through the partnership with NTC, V2 products are now sold in over 10,000 outlets nationally, including HESS gas stations, with the company fully deployed in no less than 35,000 retail locations by December 2013.

“Over the past few years, traditional retail brands have been transitioning online—but today we’re seeing a new trend with the most successful online brands moving into retail,” said Andries Verleur, CEO of V2 Cigs. “2013 was already on track to be our best year, in excess of nine figures in net sales, but post-NTC, our long-term growth will be unparalleled. Our strategy demonstrates the competitive power of developing high-demand brands online first and making them available to a wider audience at retail.”

After debuting in traditional retail outlets only several months ago, offline sales already account for more than 20% of V2’s total net sales, with offline retail expected to outpace online sales in 2014.

V2 Cigs is the flagship brand of VMR Products. V2Cigs.com receives over 6 million unique monthly visitors. For more information about V2 Cigs, please visithttp://www.v2cigs.com.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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