April 22, 2014
bancity counselclientelectronic cigarettesindustry disruptionvapevape communityvaping
2013 was a huge year for the electronic cigarette industry, but 2014 is shaping up to be the year this category disrupts nicotine consumption.
There is a lot of misinformation out there these days on the category. A huge divide has risen up as members of the anti-smoking communities come head to head with vigilant members of the vaping community.
The truth is… we are breaking new ground so regulations are unclear.
While there is a ton of ambiguity within this industry, one thing is for certain. Not all electronic cigarettes (e-cigs) are created equal. Some of them are even considered flaming fireballs!
The reason for this is the lack of regulation in the category. Chinese manufactures can sell their unregulated products to any white-label company with little red tape. Therefore, many faulty units get into the system.
City counsels across the country have been tasked with deciding the fate of electronic cigarettes in their communities.
However, venture capitalists continue to fund companies, like our client NJOY, who closed an additional round of funding for $70 million last month. According to TechCrunch, NJOY is available in over 90,000 retail locations in the US.
Factory 360 Founder & Principal, Michael Fernandez said it best in an interview with MediaPost earlier this year, “First will be efforts to combat the misinformation by revealing the ‘true facts’ of e-cigarettes, primarily that they do not come with second-hand smoke or danger to non-smokers.”
We are excited to see how the category shapes up over time. NJOY’s disruption in the market has quickly made them one of our favorite clients to work with.