Ecommerce Retailer of Own-Brand E-Cigarettes, Vapes and CBD Products

UK
Consumer, Food & Retail
Client Code: BN000038179

DTC E-commerce retailer of high margin, high frequency range of own-brand e-cigarettes, vapes and CBD products, the company serves a predominantly UK customer base. The company's products give consumers a healthier alternative to traditional cigarettes; with all products being approved by the MHRA and without the harmful chemicals and carcinogens of traditional cigarettes. The company uses Made in the UK e-liquids and fills the packages and products in the UK. Providing the company with a strong USP which gives it a strategic advantage over competitors relying on Chinese suppliers.

Key Aspects
  • Excellent reputation for producing high-quality, UK-made e-cigarettes and vape products, providing products with notable health benefits and substantially lower carbon footprint than rivals.
  • Operating solely D2C, the company has created a popular range of FMGC products, encouraging repeat custom through a diverse range of refill products (aka Gillette model) with many customers purchasing the company's products for over 10 years.
  • Strong UK foothold with an established export operation, (c5% of sales), primed for international growth.
  • Made in the UK e-liquids provides a strong USP that sets the brand apart. Most vapes rely on Chinese made ingredients and e-liquids. The Made in UK e-liquids used by the company support the the buy British and local movement that attracts a higher value customer base.
  • UK manufacturing, with the recent establishment of filling and packaging process in the UK, the business has dramatically reduced the risk exposure to China, shortened production lead times up to 80% and freed up capital requirements tied up in stock by at least 75%.
  • Dovetails into the UK and EU government's plans to further reduce adult smoking rates, vaping is now an integral part of the smoking reduction plans , securing the future market.
Opportunities
  • Unique opportunity to purchase a well positioned company in a growing market.
  • Significant opportunity to grow the company‘s EU operations (currently representing c5% of sales), with plans in place to establish a sales & production facility in one of the company’s target markets to facilitate this EU expansion.
  • The company has developed a 3-year growth plan, designed to rapidly grow its online customer base through various marketing strategies.
  • Flexible deal structure, with the shareholders willing to consider investments (£500K+) or outright sale.
  • Primed for further expansion through new sales and distribution channels with the additional networks and resources of an acquirer/ investor.
  • Recently introduced product lines such as CBD Oral Drops and CBD Gummies show promising signs of growth.
  • Opportunity for further recruitment of additional senior management positions, in order to free up shareholders time to focus on strategy. 
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