A1 Vapors Announces Engagement Agreement With FSC Company

Source from:  Marketwired 01/23/2015

A1 Vapors (A1 Group, Inc.) (AWON) announced today that it has entered into an engagement agreement with FSC Company, a specialty consulting firm that develops marketing strategies for emerging markets -- such as the technologically centric Vaping business. The Vaping Retail Market is frequently referred to as the e-cigarette business, which according to Wells Fargo Equity Research in March of 2014, has grown to $4-billion, or 5% of the tobacco market. Wells Fargo Securities analyst, Bonnie Herzog, states, "… in 10 years, vapers will outnumber smokers."

Although the competing tobacco cigarette industry is estimated to be over $80-billion, volume sales reached their lowest level since 2004 last year with just 47.5 billion units sold. Comparatively, the e-cigarette market has grown at a double digit rate over the last five years, and according to Wells Fargo, sales are expected to increase five-fold by 2017. This is a market with increasingly widespread appeal.

As Los Angeles Times reporter, Robin Abcarian, wrote in her article on December 5, 2014, "Last month, Oxford Dictionaries lexicographers announced they'd chosen 'vape' as 2014's word of the year." She continued, "Despite the fact that the vaping industry is esti­mated to be a $4-billion business in the U.S., it has the feel of a slightly under­ground, countercultural enterprise. Advocates say this is because vaping is a grass-roots, consumer-driven phenomenon that has not been co-opted (yet) by major tobacco companies."

A1 Vapors, a Vapor retailer with locations in Florida, recognizes that the Vaping industry's success will bring increased competition, not only from emerging entrepreneurs, but from the other five cigarette manufacturers who have not yet committed to an e-cigarette marketing position, specifically, Brown & Williamson, Commonwealth Brands, Liggett, Philip Morris, and R.J. Reynolds. In April of 2012, Lorillard, the nation's oldest continuously operating tobacco business, acquired an electronic cigarette company called "blu eCigs®" for $135-million.

Bruce Storrs, A1 Vapors' CEO, said, "We see the vaping business beginning to reach new maturity levels in product offerings and marketing positions. We need the help of an innovative consulting firm like FSC Company to help us look at all of our marketing and branding options as we prepare for market shifts that occur when everyone is enjoying sales success. We don't want to lose sight of the greater perspectives as we work to scale operations. FSC will ensure that we stay on the path of executing our business model and growth strategy."

FSC Company Senior Advisor, Gil Figueroa, points out, "Differentiation of products and services in this industry has become difficult. Since the market is driven by technology, health psychologies and social pressures -- like restaurants, corporations and local communities reacting to anti-smoking advocates -- new strategic views are necessary to navigate successful profit routes. Our job", he added, "is to guide and support A1 Vapors, through their endeavors in this nascent industry that many people don't quite understand yet. We will provide a roadmap and a library of options that enable and equip them to arrive successfully at their goals." Enditem