There’s no doubt that smoking is hazardous to a person’s health. According to the American Lung Association, cigarette smoking related diseases claim an estimated 443,000 American lives each year costing $4,260 per adult smoker. These statistics make cigarette smoking the single largest source of preventable morbidity (disease and illness) and premature mortality (death) worldwide.
While big tobacco companies like Phillip Morris International Inc. and Reynolds American Inc. have profited handsomely from selling cigarettes, companies like Electronic Cigarettes Intl Group Ltd (OTC: ECIG) and Avalanche International Corp. (OTC: AVLP) are focused on so-called e-vapor technologies that provide a smokeless alternative. Studies have shown that these alternatives could be very effective in combatting the problem.
In this article, we’ll take a closer look at Avalanche International and its unique product line-up that could help smokers switch to a less harmful habit.
Reducing the Risk
Recently, the products only available in the U.S. from Avalanche International’s subsidiary Smith and Ramsay Brands, where selected to be exclusively used in a clinical study by the San Giovanni Bosco Hospital Smoking Center ASL TO2 of Turin. In the 4-month study, 34 volunteers with a history of smoking 20+ cigarettes per day used the company’s Avatar vape pen and e-Liquid in lieu of cigarettes. The study shows some remarkable results confirming that e-vapor may hold promise.
After the four months, half of the participants quit smoking and relied completely on the vape pen and e-liquids, while 92% reduced their cigarette use. The data from the study also suggested that the Avatar vape pen has lower toxicity than normal cigarettes, which was measured by looking at CO levels in the blood that serves as a proxy of sorts for harmful substances.
“This study shows in particular the importance of using the electronic cigarette as a cessation tool in health care,” said Walter Ricciardi, Special Commissioner of the National Institute of Health in Italy. “Its effectiveness, in fact, is linked to its correct use allowing, in heavy smokers, to absorb the right amount of nicotine to prevent the patient from excess toxicity or withdrawal symptoms.”
Avalanche International’s story is just as compelling for investors as it is for public health experts. By providing both a revolutionary vape pen and the premium vape liquid that’s consumed by them, the company’s razor-razorblade model could generate attractive recurring revenue over time for shareholders, driven by a growing end market for vape pens that consistently need refilling.
According to Vaping News, the vape market has grown to over $1.5 billion per year, featuring various flavors, nicotine levels, and other attributes to produce a unique and customized experience. Management believes that there will be a natural rising demand for high quality products and varying flavors to attract a diverse customer base, which it plans to capitalize on with its Smith & Ramsay signature brand.
Management plans to launch the signature brand and aggressively expand with additional brand lines for different markets. The signature line of premium vape liquid will focus on the vape store and traditional smoke shop markets, while other branded product lines will focus on convenience stores, gas stations, and yet others for ethnic-specific markets. Products like its vape pen and disposables will be tied to these lines over time.
Avalanche International’s Avatar vape pen represents a step forward in the world of electronic cigarettes. With an elegant shape that embraces an innovative spirit, the vape pen features a new chip that significantly reduces charging time compared to other electronic cigarettes. Meanwhile, the ceramic paint guarantees a long lasting color and makes it much easier to clean than conventional brands.
In November, the company signed an agreement with Smart Evolution Trading SRL to become the exclusive U.S. distributor of the Avatar and Puff branded vape pens, e-liquids, and other accessories. The same product lines are already carried in over 1,000 stores throughout Europe, Africa, and Asia with 2013 gross revenue of over $33 Million USD ($27 million Euro), according to the company’s press release.
Management hopes to ink similar agreements in the future to expand its product lines to include a variety of accessories to complement its core business of providing premium vape liquids.
Avalanche International appears well positioned within the rapidly growing vape marketplace, with a signature brand of premium vape liquids and a growing line-up of accessories. With plans to scale into the market over the coming quarters, investors interested in the tobacco and marijuana industries may want to keep a close eye on the stock given the many potential catalysts.
For more information, visit the company’s website at www.avalancheinternationalcorp.com.