CannabisNewsWire
Editorial Coverage: The growth of vaping has led to the
emergence of a new sector.
- Vaping is tied to the tobacco and cannabis industries but has
become popular as a healthier delivery system for both
products.
- Investment and mergers are fueling the industry’s
expansion.
- Working smarter in the competitive market may be savvy
strategy.
Many companies are jockeying for position in this new space.
Interestingly, some of the more successful companies may not
necessarily be the big players but those that work smart with what
they have. Among these smaller smart companies is VPR
Brands LP (OTC: VPRB) (VPRB
Profile), which has used innovative products and
marketing tactics to expand its customer base. At the opposite end
of the spectrum is Altria Group Inc. (NYSE: MO), a
tobacco giant that has invested heavily in vaping.
Greenlane Holdings Inc. (NASDAQ: GNLN) works on
the distribution side and has impressive reach, supplying nearly
10,000 stores and two major online outlets. KushCo Holdings
Inc. (OTCQB: KSHB) has moved successfully from packaging
into cannabis. Thanks to cannabis-based medicines such as those
created by GW Pharmaceuticals plc (NASDAQ: GWPH),
vaping may even develop a place in medical care.
To view an infographic of this editorial, click here.
Vaping Takes Off
Vaping has taken off in a huge way over the past few years.
One in 20 American adults now vapes, and the
habit has gained global popularity as an alternative to smoking.
This trend has led to the rise of companies providing vaping
products, primarily the hardware and the fluids used to manufacture
those products. The industry, which didn’t even exist just over a
decade ago, was valued at more than $7 billion
in 2016 and has kept on growing, with observers predicting that
it will reach an estimated $47
billion by 2025.
The market is already being shaped by a number of larger and
seemingly more profitable vaping companies. But with the whole
industry still so young, the space seems full of flux and
uncertainty. Smaller companies are sometimes proving more
profitable in practice, and there’s potential for the balance of
influence to be transformed.
An Active Market
The vaping market is still going through the early stages of
development. Smaller companies such as VPR Brands LP
(OTC: VPRB) can compete with established big names
because even those names are relatively new in the sector. With
only a decade of development, none of these businesses can claim
the sort of extended heritage and track record provided by leading
tobacco and alcohol brands.
The vaping industry has found its moment through the arrival of
two important but conflicting trends: a shift away from smoking and
the rise of legal cannabis.
In western countries, millions of people are trying to give up
smoking because of its harmful health effects. Older substitutes
such as nicotine patches and gum don’t provide the sense of ritual
or social experience that smoking does, but vaping can fill that
niche. That option appears to be a popular choice among
ex-smokers.
At the same time, cannabis has been legalized across swathes of
North America and beyond. Whether used for medicine or recreation,
the plant is often at its most effective when inhaled, and as with
tobacco, this is part of the ritual surrounding it.
However, at a time when the public is becoming more health
conscious, straightforward smoking is unappealing to many, thus
leading to vaping appearing to be a more attractive alternative.
VPR Brands has seen success by providing a range of
vaping products that fits the needs of cannabis consumers. By
providing an alternative way to consume the active chemicals from
cannabis, vaping companies are saving cannabis consumers from a
return to smoking.
Mergers, Acquisitions and Investment
Investors have been quick to see the opportunity that this trend
has created. Money has flowed into vaping companies, allowing them
to continue research, development and marketing of new
products.
Business journalists and commentators have been following this
trend. A senior analyst at Cowen recently pointed out that vaping is underrated as a factor in the cannabis
sector, where much of the attention is on smoking and edibles.
VPR Brands has seen coverage in the press as ‘one to watch’, thanks in part to its high-quality
vaping products.
Even the big rivals to vaping are getting in on the act. The
company behind Marlboro cigarettes has made a substantial investment in an e-cigarette company.
While established companies may prefer their business models
continue as they are, savvy businesses recognize the need to adapt
with the times, and fear of missing out has many companies
scrambling to get in on the new market.
Vaping and CBD
Vaping plays a particularly prominent part in the CBD
market.
CBD is a chemical derived from cannabis but without the
psychotropic properties of THC. The plant is more widely legal for
sale than other cannabis products, and production has become easier
since December, when U.S. authorities legalized the cultivation of
hemp, a variant of cannabis rich in CBD but without THC. CBD has
become its own growing market within and around the cannabis
industry, and smart companies have moved to make the most of the
opportunity it offers.
VPR Brands has built a product line specifically for this
market, creating not only CBD oils but vaporizers designed to work
well with CBD. Its Goldline brand
consists of CBD products including vaping liquids and vaporizers.
VPR also aims to reach CBD consumers who don’t vape, through
edibles such as Honeysticks, made of
CBD-infused honey.
Marketing these products hasn’t always been straightforward.
Legal questions over the status of CBD meant that CBD products
weren’t allowed at the National Association of Convenience Stores
expo in 2018, despite their popularity in some stores. VPR Brands transcended this marketing obstacle through
hemp products that didn’t contain CBD but instead acted as
ambassadors for the Goldline brand. With recent legal changes, it’s
unlikely that even these obstacles will be in place for long.
David Versus Goliath
In this surging and shifting market, victory doesn’t always go
to the biggest companies. In fact, smaller brands are often able to
outperform larger ones in key areas, providing they work smart.
Large companies sometimes rely on soaking up losses to let them
ride to profit in the long term. Smaller companies, such as VPR
Brands that can’t afford those losses, have to work smarter, aiming
at obtaining better results. VPR’s seasoned management team,
including veterans of Vapor Corp., have developed a fiscally smart
strategy that minimizes outstanding shares and reduces operating
losses while increasing sales.
One of the strongest indicators of VPR Brands’ performance is
its debt-to-sales ratio. The company is currently selling five
times as much as it is borrowing, in contrast with competitor
ratios that in some cases average two to one. Who’s winning on
vaping depends upon how success is measured, and larger companies
inevitably have more cash coming in. But when those numbers are
balanced against losses, the smaller rivals, forced by necessity to
work smart, may evolve into more effective players and triumph in
the long term.
The State of Vaping
A variety of companies, both big and small, are operating in the
vaping space.
One of the biggest players is the Altria Group Inc.
(NYSE: MO). One of the world’s largest tobacco producers,
Altria is the corporation behind such famous cigarette brands as
Marlboro and Benson & Hedges. The company recently acquired a $12.8 billion stake in Juul Labs, the
biggest player in the vaping industry, in a move designed to
give it a piece of this fast-growing market.
With decades of experience grappling with government regulation,
Altria’s expertise is likely to shape the future of the vaping
market far beyond its own share of the pie.
Greenlane Holdings Inc. (NASDAQ: GNLN) is a
leading business in the distribution of vaping products. Its
customers in the United States and Canada cover nearly 10,000
retail locations. The company also operates two of the most visited
North American direct-to-consumer e-commerce websites for vaping.
The company went public on the
Nasdaq in April this year, making it one of the biggest
cannabis-related companies available for trade on a major U.S.
exchange.
KushCo Holdings Inc. (OTCQB: KSHB) entered the
sector from packaging solutions, an unglamorous but vital part of
the industry. The company has since moved heavily into the cannabis
sector, creating a one-stop shop for cannabis products that places
it squarely in competition with others in the CBD and vaporizing
markets. The move has resulted in the company posting its all-time high revenue in the latest quarter. KushCo
also recently secured long-term
supply arrangements with three large companies, which are
predicted to provide $75 million.
Unlike traditional smoking, vaping is finding a place in the medical sector. The use of CBD
and other active ingredients from cannabis to treat a range of
ailments means that vaping may provide a way to consume medicines.
GW Pharmaceuticals plc (NASDAQ: GWPH) is working
on cannabis-derived medicines, with a particular focus on tackling
forms of epilepsy, for which it is currently presenting data on successful trials.
Vaping has become an important part of the combined tobacco and
cannabis markets, and as its reach grows, so will the companies
providing it.
For more information on VPR Brands, visit VPR Brands LP
(OTC: VPRB)
About CannabisNewsWire
CannabisNewsWire (CNW) is an information service that provides
(1) access to our news aggregation and syndication servers, (2)
CannabisNewsBreaks that summarize
corporate news and information, (3) enhanced press release
services, (4) social media distribution and optimization services,
and (5) a full array of corporate communication solutions. As a
multifaceted financial news and content distribution company with
an extensive team of contributing journalists and writers, CNW is
uniquely positioned to best serve private and public companies that
desire to reach a wide audience of investors, consumers,
journalists and the general public. CNW has an ever-growing
distribution network of more than 5,000 key syndication outlets
across the country. By cutting through the overload of information
in today’s market, CNW brings its clients unparalleled visibility,
recognition and brand awareness. CNW is where news, content and
information converge.
Receive Text Alerts
from CannabisNewsWire: Text "Cannabis" to
21000
For more information please visit https://www.CannabisNewsWire.com and
or https://CannabisNewsWire.News
Please see full terms of use and disclaimers on the
CannabisNewsWire website applicable to all content provided by CNW,
wherever published or re-published: http://CNW.fm/Disclaimer
CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com
DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article
and content set forth above. References to any issuer other than
the profiled issuer are intended solely to identify industry
participants and do not constitute an endorsement of any issuer and
do not constitute a comparison to the profiled issuer. The
commentary, views and opinions expressed in this release by CNW are
solely those of CNW. Readers of this Article and content agree that
they cannot and will not seek to hold liable CNW for any investment
decisions by their readers or subscribers. CNW is a news
dissemination and financial marketing solutions provider and is NOT
registered broker-dealers/analysts/investment advisers, hold no
investment licenses and may NOT sell, offer to sell or offer to buy
any security.
The Article and content related to the profiled company
represent the personal and subjective views of the Author, and are
subject to change at any time without notice. The information
provided in the Article and the content has been obtained from
sources which the Author believes to be reliable. However, the
Author has not independently verified or otherwise investigated all
such information. None of the Author, CNW, or any of their
respective affiliates, guarantee the accuracy or completeness of
any such information. This Article and content are not, and should
not be regarded as investment advice or as a recommendation
regarding any particular security or course of action; readers are
strongly urged to speak with their own investment advisor and
review all of the profiled issuer’s filings made with the
Securities and Exchange Commission before making any investment
decisions and should understand the risks associated with an
investment in the profiled issuer’s securities, including, but not
limited to, the complete loss of your investment.
CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. “Forward-looking statements” describe future expectations,
plans, results, or strategies and are generally preceded by words
such as “may”, “future”, “plan” or “planned”, “will” or “should”,
“expected,” “anticipates”, “draft”, “eventually” or “projected”.
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a company’s annual report on Form 10-K or 10-KSB and
other filings made by such company with the Securities and Exchange
Commission. You should consider these factors in evaluating the
forward-looking statements included herein, and not place undue
reliance on such statements. The forward-looking statements in this
release are made as of the date hereof and CNW undertakes no
obligation to update such statements.
Source:
CannabisNewsWire
Contact:
CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.net
Altria (NYSE:MO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Altria (NYSE:MO)
Historical Stock Chart
From Sep 2023 to Sep 2024