Author: BO Team

After hitting a few road bumps during its launch in the U.S. market, MMS Distribution’s Bo is back in the nicotine salt category with a with a revised manufacturing process.

Designed to be smaller and easier to use than the “box-style” designs currently on the market, Bo Vaping’s closed-system device seemed like the perfect fit for the U.S. market, where vapers have found many of the available systems to be too cumbersome and complex. And it was—except that manufacturing issues caused the batch of products brought to the U.S. in 2016 to be plagued with problems, including leaky pods that appeared to be discolored or burned.

To remedy the problem, JWell, the company that makes the product, needed to reconfigure the manufacturing process to address those issues. “Our innovative pod is now leakproof and sure to wow former Bo users back into the fold,” says a company spokesperson, who notes that key features of the pod include a strong battery life, a 15-minute charge time, temperature control that promotes consistency, and a sleek and sophisticated design. Bo Vaping has always taken great pride in their superior devices.”

The company remains committed to pods, which it sees as the right option for convenience-minded American consumers seeking a portable, easy-to-use device. “We feel that our strong consumer base prefers not to fill their own pods,” says the spokesperson. “They are looking for something a little more user-friendly, so to speak.”

Bo pods, which are available in single-pod packs, come in four flavors, including Butterscotch Tobacco, Melon, Gold Tobacco and Icy Mint. “They will still be the same 1.6 mL size and compatible with our original device design, but now we offer consumers the option to try all flavors without having to buy multiple,” says the spokesperson, who added that the company currently offers only a 5 percent nicotine concentration. “But keep an eye out, as we have lower levels making their way back to market shortly.”

To make sure consumers recognize the new, improved Bo, JWell also redesigned the company’s packaging, choosing a white background and black lettering for a sleek and streamlined look. “It will be more eye-catching in stores, and the smaller display will take up one-fourth the space it used to,” says the spokesperson. With the single-pod pack, we had simplicity in mind.” In fact, the brand’s motto is: “Bo. Just Simple.”

The company is keeping an eye on the potential for competition from the type of heat-not-burn products that have been successful in overseas markets, but JWell doesn’t see that category as much of a threat to Bo. “We feel this is a different type of customer—one that doesn’t mind still smelling like cigarettes. We’re confident that the effects will be minimal, but we’ll keep an eye out, as those products are not available in the U.S. yet.”

U.S. Food and Drug Administration (FDA) regulation, however, could be an issue, says the spokesperson. “Regulation is good for a market. Over-regulation is bad. The question is, which is it going to be: healthy regulation to aid in maturing this market or
over-regulation to stifle it?

Whichever way the FDA goes, Bo Vaping is ready for the coming regulatory climate, the spokesperson notes. “Regulation is not new to us, and with the help of our legal and compliance team at Morgan Lewis and Arcus, we feel ready for whatever comes.”

This story first appeared in the November/December 2018 issue of Tobacco Business magazine. Members of the tobacco industry are eligible for a complimentary subscription to our magazine. Click here for details.

BO VAPING KNOWS

Learn the name before it’s too late: BO Vaping is a powerful e-cig device that has wowed industry vets and power players. Here’s why it appears to be ready for a big 2018.

If we’ve learned anything from the technological advances in computers, video games and cell phones over the years, it’s that every couple of years a new product comes out that changes the game. It’s the same in the world of vaporizers and e-cigarettes too — it’s a quickly changing marketplace where technological advancements and new functionalities are constantly giving consumers better options. Well, the team behind BO Vaping is confident it has a game-changer on its hands and is gearing up for an exciting 2018. Meet the BO One, an e-cig that is wowing experts and has
secured a distribution deal around the U.S. that could make it a household name in its market by the end of 2018. It’s a closed-end device that uses    e-liquid caps and packs enough power that major industry players are confident in its success.

“There’s a lot on the market,” says Chris Fiumara, the president and CEO of MMS Distribution, which is overseeing BO’s take-off this year. “But none that compare to BO. We think it’s the superior product, and not just from a marketing standpoint. It doesn’t just look great, it’s functionality is better
than anything else on the market.” Before we get to the functionality, let’s pause for a second to acknowledge that, yes, the BO is sexy. It’s sleek, aesthetically pleasing and well-designed. It’s also got some real power under all that e-cig sexiness. Now, a few particulars on what’s under the hood:

• BO’s battery measures at 380
MAH compared to the 200 MAH
offered on competing devices.

• It charges in 15 minutes, while
competitors take at least 25
minutes and sometimes up to 90
minutes.

• BO’s pods hold 1.6 ML compared
to the competition’s 0.7 or 1.0 ML.

• Another selling point is BO’s
lifetime warranty and its depend-
ability, as its defect ratio falls well
lower than industry norms.

BO’s closed-end system means that its flavor pods are nonrefillable and disposable, making it incredibly easy to use and customize. With that, BO sells six different flavored pods — from Fresh Cut Tobacco to Fresh Mango and Jelly Mixed Berries, plus a variety of skins, designs and a customizable charging station. “Those are the key factors that consumers care about,” Fiumara said, after listing off BO’s various specs and customization keys. “Those are some of the factors that led us to go after the product aggressively.” MMS is a major player in the distribution world — with the power to get items into 50,000 to 80,000 stores. While it carries 7,000 to 9,000 products at a time, it usually hones in one product each year that it thinks has a chance to grow in a huge way. This year, it picked BO to push alongside its everyday items such as lighters, rolling papers and energy drinks. “Our platform touches major convenience stores, major chains,” Fiumara said. “A little different than what the vape industry is used to. We’re dealing with national chains and national distribution.” In a way, it’s sort of like when a major record label discovers a talented artist and wants to give him or her a big national push. “We’ll make you a star,” they might say, and that’s the case with MMS and BO too. MMS saw something in BO’s product line that got it excited enough to give the product a huge push. But the original BO brain trust is still involved and working right alongside MMS.

“What we try to do is sift through muddy waters and go to shows that companies of our size wouldn’t go to,” Fiumara said. “And try to find diamonds in the rough. A lot of people have great products but they don’t have a way to get them out there. We find products that we feel have big potential.” Fiumara has been at this long enough to know when his company has found a product with potential and that’s what he thinks he has here. BO started in Europe, but also has parts that are made in the U.S. And the U.S., it appears, is now primed for BO to make an impact. “Just because we have scale,
doesn’t always mean a product is going to be successful,” Fiumara said. “But we’re confident that this product is that good and that a great percentage of people who try it will become users of it.” It’s an exciting time for both companies, but that’s how it is when you’re confident you have a hit on your hands. “Once every few years, we come across a diamond in the rough that we put a bunch of resources toward,” Fiumara says. “It’s rare that we’re putting as many resources as we’re putting into this.” So that should tell you all you need to know about BO.

FOR MORE INFO
• bovaping.co
• contact@bovaping.co
• (516) 373-2400
• @bovaping_us on Instagram

MMS Distribution is looking to bring a European success story to America— and to bring more smokers into the vape fold in the process.
BY JENNIFER GELFAND

IN THE VAPOR WORLD, delivering a better vaping experience has long been viewed as the only way the industry will succeed at convincing smokers of conventional cigarettes to make a switch. On the home front, innovation hasn’t been easy, especially with the uncertainty around U.S. Food and Drug Administration (FDA) regulation and the question of whether new devices will be able to stay on the market. So when MMS Distribution got the opportunity to sell Bo—a closed-system device winning rave reviews in Europe—stateside, CEO Chris Fiumara jumped at the chance. “In the last three years, we haven’t seen any thing of superior quality and design introduced,” he says. “A lot of closed-system devices have leaking issues or insufficient battery capabilities. Bo was developed to give vapers both convenience and quality.”

The Quest for Quality

Bo’s journey began in 2015 when JWell Group, a top e-cigarette manufacturer and retailer in Europe, decided to develop a vapor product that would be smaller and easier to use than the “box-style” designs currently on the market. Closed-system devices offered a better
vaping experience than e-cigarettes, but many customers found the devices too cumbersome and the need to change the coil and add e-liquid too complex. “The main issue in manufacturing a small-size product was to be able to provide a good vaping experience to the customer so they can have a decent amount of vape and some nice flavors to increase the chances of quitting smoking through an easy and enjoyable experience,” according to the research and development team at JWell. “Battery life was also an issue.” After nearly a year of R&D, JWell developed a pocket-sized device with a battery that could last the day and that offered a vaping experience comparable with larger devices on the market. It was an immediate hit. Featuring a 380 mAh battery with a 15-minute charge time, Bo is equipped with a 1.5 mL pod and comes with a lifetime warranty. Bo uses a salt-based e-juice that improves the vaping experience, adds Fiumara. “Nicotine salt allows the nicotine to metabolize faster so the person vaping gets more immediate satisfaction, similar to that of a real cigarette, without the unhealthy, unwanted effects of smoking,” he explains, noting that the juice is made in the U.S. and does not contain any diacetyl, ambrox or acetyl propionyl. The Bo One vaping kit includes the Bo One pod vape device, a magnet USB charger and two e-liquid caps at an MSRP of $39.99.

E-liquid caps are currently available in six flavors—iSee Mint Ice Menthol, Kiwiberries, Fresh Mango, Jelly Mixed Berries and Apple Juice—with nicotine contents ranging from 3.5 percent to 5.5 percent. Quickly embraced in Italy, the U.K., Germany, China and other markets overseas, Bo got a slower start when it was launched in the U.S. 19 months ago by a regional vape shop. However, MMS took over exclusive distribution of the product in August 2017 and has ambitious plans to build the Bo brand in 2018. “In the first quarter of 2018, we are prepared to spend $12 million on advertising and promoting the brand, including a mix of national television, radio and print campaigns, as well as social media and promotions and sampling at the retail level,” says Fiumara. He and team members from JWell recently shared their vapor market insights and plans for the product in the following interview with Tobacco Business.

Tobacco Business: Can you tell us about any new developments you have planned for Bo? Are there any new products or offerings in the works?

Chris Fiumara: Not exactly what we would call “new” products, as [the FDA’s deeming rules] state that products must have been on the market or registered before Aug. 6, 2016, which means we are really limited to the product lines that JWell had out in the States prior to that date. Fortunately for us they had some great products out in the States that were never marketed to scale [so] we can continue to pull from those from an expansion standpoint.

How does the vapor market in the U.S. differ from the market in Europe? From a retail channel or customer perspective, are there significant differences? What are you doing differently here with regard to marketing your product?

JWell: The European market and the U.S. market are very different for many reasons, one of which is legislation. For example, Europe does not permit the sale of any liquid with a nicotine level above 2 percent, or 20 mg, so in that market we offer juices with 0 mg, 8 mg and 16 mg of nicotine to meet that restriction. In the U.S., you can go higher with nicotine levels. Also, European legislation does not allow any advertising in “regular” channels, such as radio, TV [and] newspapers, so we can promote the product only through specialized magazines and at trade shows. However, our main advertising is through our loyal customers who recommend the device. We are very grateful for that.

What is your view of the growth prospects for the category as a whole in the U.S.?

Fiumara: Most experts see the global vaping market reaching $42 billion to $47 billion by 2025. We see more and more people each day quitting conventional, more harmful cigarettes and switching to vaping as their next step before quitting. We hope Bo is instrumental in helping those people.

What are your goals for the brand in the U.S.?

Fiumara: We want consumers to be so happy that they have absolute brand loyalty. Most companies these days pretend they care so much about their customers but do not properly convey that to the consumer. We want Bo to be the name you think of when you think of closed-end vaping devices. We know it is a hard goal to obtain, but we think it will happen.

What advice would you give to retailers to make the most of Bo’s potential?

Fiumara: Educate your customers, use the materials provided to inform customers that when they are buying Bo, they are buying the top-of-the-line system. It’s like any other product; educating the customer is key so they know why they are buying Bo over something else.

How price-conscious are closed-system vapor device consumers? Fiumara: I think customers are starting to see that, in the closed-system world, cheap becomes expensive. The first-time buyer might buy a less expensive pen, only to find that it leaks or doesn’t function properly—or ends up not working at all. But they enjoy using a vaping device and go on to buy a more reliable, warranted system like the Bo, where they spend the money once and never have to buy another device.

How do you ensure product quality and consistency?

Fiumara:I would say right off the bat that our factory setup in general separates Bo from most every device. Production of most competing devices is outsourced to a Chinese factory that does private labels. Our factory is dedicated just to our device, and production is overseen by a group of inspectors from MMS Distribution in the States, as well as JWell in France, who work directly with our manufacturing facility and are on-site day in and day out. We also have a vigorous quality-control process and a testing facility.

How concerned are you about FDA regulation? What changes have you made or do you plan to make to your business to prepare for the agency’s deeming regulations to take affect?

Fiumara: We, like any other compliant company, will continue to abide by any law or regulation the FDA has planned for the industry. Regulation isn’t always as bad as most think; we have a view that the FDA regulations might weed out some companies that perhaps are not following the proper guidelines. In the meantime, we have retained the most capable law firm that specializes in this arena and will rely on them to keep us ahead of the curve of any future regulations or changes that may come to the market. TB