Talking Shop with...John J. Wiesehan, Jr.

John J. Wiesehan, Jr., CEO of Mistic Electronic Cigarettes, says a variety of flavor profiles and consumers’ ability to customize their own vaping systems is driving vaping sales.

There is a lot of information in the marketplace about vapor products. What do retailers really need to focus on?

John J. Wiesehan, Jr.: Until the FDA comes out with its final rule on the manufacturing and marketing of e-cigs and vapor products, misinformation about these alternative smoking products will likely continue to surface. A few companies like ours are already implementing steps that may be required under the deeming process, such as listing our ingredients and including warning labels about underage usage and the effects of nicotine. Given the lack of consumer education at the point-of-purchase, retailers need to think about carrying trusted quality brands with expert customer service departments to be able to respond to inquiries. We also believe that because all of our products are made and assembled in the U.S., including the bottling and filling of our HAUS e-liquids, we are more successful with both consumers and retailers. 

How has the category been performing and what do you expect in the near future?

The vapor category is still growing, but not at the same rate. While cig-alikes are experiencing decelerated growth, personal vaporizers (PVs), tanks and mods are growing three-times faster than the entire category, according to some industry reports. This is fueled by consumers wanting more choices with their vaping experiences, mostly driven by the availability of a wide variety of flavor profiles and the ability to customize their own vaping systems. We also continue to see growing demand for our HAUS Personal Vaporizer, which is now being sold in more than 68,000 retail stores. In fact, we were one of the first companies to roll out a PV at the national retailer level. Additionally, while consumer demand for our Mistic cig-alikes is still strong, we recently introduced our Mistic Bridge, a crossover between a cig-alike and personal vaporizer, which continues to excite new and existing customers.   

How can retailers maximize sales from the category in terms of placement?

Some retailers are moving e-cig counter displays to the back bar, which is creating missed opportunities among potential customers interested in vaping. Keep in mind that there are 42 million smokers in the U.S. alone and 70% want to stop smoking, so the market opportunity is huge. Having information about e-cigs and vapor products at the point-of-purchase is key to generating awareness and increasing sales among consumers. Our specially designed counter displays have been very effective showcasing our branded products, while giving store clerks quick, easy SKU access as inventory supplies are monitored in real-time.     

What merchandising and in-store marketing opportunities are there?

Retailers must improve consumer education at the point-of-purchase, whether it is educating store clerks about vapor products as smoking alternatives, or improving brand and category signage within each brick-and-mortar location. We provide retailers with links to our website, in-store signage, as well as instructional videos about our Mistic and HAUS products, including marketing best practices. Given the in-store locations where these products are being sold, some successful retailers have increased signage both in-store and out, alerting consumers to the availability of these products. Additionally, redemption coupons with manufacturers can provide increased store traffic and repeat customers.

What is Mistic doing in terms of new products and marketing?

We just introduced our Mistic Bridge with HAUS technology, the newest generation from our rechargeable line. It combines the flexibility of an open tank system with the convenience of a cigarette-like configuration. The Mistic Bridge will be sold as starter packs and individual refillable replacement tanks. We believe the Mistic Bridge fulfills a deep need among cig-alike users looking for more choices and flexibility in their vaping experiences that they do not necessarily get with existing closed cartridge systems. 

Additionally, this year we are continuing our motorsports sponsorships of the Verizon IndyCar Series and Red Bull Global Rallycross Series for our Mistic and HAUS brands, leveraging on-site activation at races to engage consumers about our products and the benefits of vaping. We continue to offer coupons, special discounts and product giveaways on our website and social media platforms that have been very successful at engaging new and existing consumers.