by Buddy BakerMay 4, 2012
With a venture capital investment of 20 million dollars in NJOY and the sale of Blu for 135 Million, big tobacco may be seeing the vapor.
One of the oldest and most trusted American electronic cigarette firms is getting a number of calls from big tobacco asking if their firm is for sale. Ed Balder, founder of the several name brand e-cigs available in the USA, is glad to get the calls. After almost 6 years of risk taking on a product that has gone through such insecurity in the way the FDA and retail outlets look at e-cigs, Balder feels a bit of satisfaction.
Investments 6 years ago for e-cigs was not even on the map but a new Wall Street report show that e-cigs may be the best dollar for dollar investment for any venture capital group. Weeks ago 20 million dollars was invested by venture capitalists in the Njoy brand and the Blu brand was bought out by big tobacco for $135 million only days ago.
Balder wonders what the buyers got for their money. As far as he can tell, both Njoy and Blu only import products made by firms in China. Balder feels that these USA firms just slap their name on China made e-cigs and have a brand that anyone with a few bucks could make.
All of Balder’s e-cigs are like no other in the world. They are made in durable light weight rubber tubes that offer a soft rubber tip so smokers can relate to Balder's brands of e-cigs so much better because they are similar to the feel of a normal tobacco cigarette. Balder also points out that all his brands of e-cig have been voted the best tobacco flavors and best menthol flavors in the industry. “If our product didn’t taste better than any tobacco cigarette...why would people buy them?”
What also makes Balder’s brands the best value are his price points that are up to 50% less than any other brands. Njoy disposable sells at retail for $6.99 and Balder's e-cigs sell at retail for about $3.99. One disposable e-cig brand he developed lasts longer than 2 packs of smokes and retails for the same price as its brand name “The $3.99” premièred at last months ASD show. The $3.99’s are now becoming the number one brand with independent C-stores almost overnight because independents can buy direct from Balder for $1.99 and get free shipping, so a counter display with twenty $3.99 e-cigs costs a store under $40 to get started, far less than any other product.
“We love the independents” says Balder “from C-stores to tobacco stores, the independents never get a great deal on anything. Because we can sell them an e-cig for just $1.99 that lasts over 2 packs of smokes and we provide free shipping, the independents get even a greater price advantage that Njoy or Blu could ever offer. He wonders what will happen to the investments in Njoy and Blu when his new Ciggee Short comes out in July that retails for only $1.99. One big tobacco firm he talked to wants to put the Ciggee Short in every pack of its tobacco cigarettes so when people want to smoke inside they can because their tobacco cigarette pack came with an electronic cigarette...a great idea you will see soon at C-stores if things go right for Balder and a big tobacco firm.
“It won’t be long before we get an offer we can’t refuse” says Balder “We are the only firm out there with our own proprietary systems for manufacture. We are the only firm that uses our exclusive e-cig designs that make every brand we manufacture as close to a real cigarette as possible. So when you make a better product and offer it at wholesale for less than any other brand, I’m sure we’ll find a big tobacco partner to work with.
With the massive sales explosion of the $3.99’s and the Ciggee after appearing at the Las Vegas ASD show last March, Balder knows that a large cash windfall would establish his brands as the top e-cig sellers in the world far faster then his firm can move right now.
“We are so glad to dominate the independent sales in the USA. These are the people who believed in us years ago and we want to always be able to offer them the best product at the best price. Big tobacco money would allow us to get to the more mainstream retail outlets and offer them the same market advantage”
Balder does not sit by the phone waiting for the next call from big tobacco. He is happy with the massive growth his firm has demonstrated every year. He is enjoying the satisfaction of knowing that all the work he and his teams have done in the last six years has peaked the attention of big tobacco, something years ago he thought would never happen.
News Source: http://www.free-press-release.com/news-big-tobacco-buying-more-e-cig-firms-1336167267.html
Official Website: http://www.ciggee.com
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