2014-04-02 06:41:54 - Patrick V. Butson talks about his reasoning behind the two bold predictions he made in a previous press release.
(Fort Worth) April 1st, 2014 - VAPOR DIGEST, The Official Trade Publication Of The Electronic Cigarette Industry, released the following Statement Today Concerning the recent Predictions made by Patrick V*Butson Concerning the near term future of the E-Cig Industry
In a Press Release dated March 17, 2014, VAPOR DIGEST published an analysis of the merger between Victory E-Cig and Fin Branding Group. In that analysis, the Founder of VAPOR DIGEST, Patrick V* Butson, presented his opinion on how the Victory/Fin merger might affect the E-Cig Industry, and additionally made 2 very detailed predictions about what might happen next in the E-Cig Industry as a result of Victory/Fin merger.
The First Prediction Patrick V* made (Prediction #1) was very specific:
#1) Within 60
Days: either NJOY or LOGIC or VICTORY will either START or BUY a US-Based e-Liquid Company.
The Second Prediction Patrick V* made (Prediction #2) was “Stupidly Specific” (using a term from one of the many critical emails VAPOR DIGEST has received):
#2) Within 60 Days: VICTORY E-CIG will announce plans to BUY Ohio-based E-Liquid Company NICQUID.
Since the release of these predictions, Patrick’ V* has been overwhelmed with requests for interviews about these predictions. While most of those who have responded were the very professional and were just seeking of further clarification, more than just a few of the responders have accused Patrick V* of blindly throwing random darts in hopes of lucking into a bull’s eye that would drum up publicity for the Premier Issue of the Magazine.
In response, and in order to maintain the credibility that we at VAPOR DIGEST believe is our only true asset, we would like to release the following explanation of these Predictions directly from the person that made them - Founder, Patrick V* Butson.
“In my estimation, THERE are only 5 US E-Cig Brands large enough to quickly purchase another company: BLU, MISTIC LOGIC, NJOY and VICTORY/FIN
I obviously eliminated BLU because of the Johnson Creek connection. I eliminated MISTIC because they worked closely with Tobacco Technology, Inc on their just released Haus PV Bottled e-Liquids. I don’t believe that MISTIC would jeopardize that relationship. NJOY has a ton of money, but they seem to be content to keep their powder dry. I think something much bigger than the purchase of an e-Liquid Co is on the horizon for NJOY. LOGIC, it seems to me, is focused on solidifying their current market position and improving their efficiencies with a goal of becoming the low cost solution.. This is a perfectly fine goal, but not one that is in sync with the purchase of an e-Liquid maker.
That left me with, VICTORY who seems to me to be the most obvious company to make a play into the e-Liquid market. VICTORY has clearly announced that they will be aggressive in building their portfolio of brands. They have put their money where their mouth is with the recent agreements with VapeStick and Fin). With CEO Brent Willis at the helm, they have a leader with a history of aggressively building brands through acquisition. Victory has also partnered with Fields Texas, LLC. Mr. Field’s also has a history of being fearless when it comes to consolidating brands within an Industry. I don’t think I am going out on a limb at all predicting that VICTORY will continue to be aggressive.
After I identified the most likely buyer, I then needed to identify the most likely target. In my analysis of the current marketplace, only three US Based e-Liquid Manufacturers would be viable candidates to be purchased. A) DuraSmoke, B) Mount Baker Vapor C) NicQuid,
DuraSmoke makes a very high quality e-Liquid.. Most importantly to a Large E-Cig Brand, DuraSmoke has already taken the forward-looking step of becoming ISO 9001:2008 Certified. Jumping through all of the ISO hoops is no small accomplishment, and a large E-Cig Brand would find the ISO Certification appealing. Unfortunately, the DuraSmoke brand is not particularly well known in the vaping community. DuraSmoke has not been an exhibitor at any of the half dozen tradeshows that VAPOR DIGEST has covered over the past 6 months. I believe that if a large U.S E-Cig Brand purchased DuraSmoke, the news would be greeted with a “collective yawn” from the E-Cig industry. Big brands don’t like yawns when they make a play, so I eliminated DuraSmoke.
Mount Baker Vapor also makes a fantastic e-Liquid product. In addition, they are, by far, the best Business to Consumer marketers of e-Liquids. Mount Baker Vapor understands social media better than any other e-Liquid company, and they build their brand the most enduring way - one individual at a time. They exhibit at every Vape Event, with a traveling army of wonderful employees. The owner of the company, James Thompson, is quite brilliant and also very confident of his company’s future. . Because of that, Thompson just doesn’t seem the type who would agree with any outside valuation of his company. All bids would be too low. That’s part of why I like him so much, and it is also why I don’t believe Mount Baker Vapor will be bought anytime soon
That left me with NicQuid.. Their line-of e-Liquids are impressive and very well regarded in the E-Cig Industry. At every Vape Event I have attended, Niquid is there with the biggest, best and most professional booth. Their representatives are always professional, knowledgeable and customer service oriented. They are also, by far, the most “Corporate” of the e-Liquid companies. And I mean “Corporate in the good way - Organized, Focused, Professional and oozing with an “Air of Legitimacy”.
Therefore, NicQuid would make perfect sense as an e-Liquid partner for Victory. For every industry, history has shown that Mergers and Acquisitions that would make perfect sense should they happen - usually end up happening. Why would the E-Cig Industry be any different?
I hope that this explanation helps clarify my opinions and give at least a reasonable validity to my predictions “. – Sincerely, Patrick V*
ABOUT VAPOR DIGEST - VAPOR DIGEST is the First and Only Trade Publication Dedicated Solely to the Electronic Cigarette Industry. It is an INDEPENDENT and UNBIASED Publication that is DRIVEN by DATA and FACTS. To find out more about VAPOR DIGEST and the Vapor Digest Electronic Cigarette Brand Influence Index please visit: www.vapordigest.com call: 1-844-88-VAPOR or email: firstname.lastname@example.org