Big Moves for Clearette

E-cig company acquires distributor, hires new CEO, launches new product

Electronic-cigarette company Clearette acquires distributor, hires new CEO, launches new product

GREAT RIVER, N.Y. -- The Clearette Electronic Cigarette Co. closed out 2013 with a flurry of announcements: the acquisition of national manufacturing and distribution company Blackstone Distribution LLC, the hiring of Edward Reilly as the company's new chief operating officer and the launch of the smaller and less-expensive Clearette Bullet.

News of the Blackstone acquisition came on Dec. 23, and the distributor of “impulse buy” novelty items and specialty products was immediately added to the Clearette lines of electronic cigarettes, e-hookahs, e-cigars and vaporizer products. Clearette senior vice president Daniel Gambino said the addition should increase the company’s bottom line.

“It will allow us to operate extremely competitively with smaller margins and relate cost savings back to the consumer,” he said. “Now, as our distributors build relationships with the Clearette brand, they will also have a multitude of other items to offer at the point of sale. We believe this action will enhance our distributor's revenue in excess of 50% annually, and increase each retailer's profits from our lines proportionately.

“This decision was made in part because of hundreds of requests from our retailers seeking to conduct more business with our distributors,” Gambino continued. “Customer service and responsiveness are ingrained in our local distributors; we know that is one of our strengths, and now we are simply building on it.”

The hiring of Edward Reilly—who brings a background in CSR and related software systems to the company’s growing sales team—was also announced on Dec. 23. Besides his tech know-how, the new CEO has ample experience with marketing, advertising and design. Clearette believes Reilly’s expertise, along with a new workflow process, will help reduce expenses and drive profits in an increasingly competitive electronic cigarette market.

Finally, the launch of the Clearette Bullet was announced on Dec. 26. Touted as being the “exact size of a traditional cigarette,” the Bullet is smaller than Clearette’s traditional electronic cigarette products and therefore has a shorter battery life. However, while the puff count is technically less, it offers the highest concentration of nicotine in Clearette’s portfolio, and a significantly lower price point, sold individually or in a five pack, according to the company.

“This product will be great for the casual user and will do very well in lower-income areas,” Gambino said. “In addition, we believe the low-cost benefits will also increase sales volume for individuals that are new to the market and are looking to try an electronic cigarette for the first time. The physical size is identical to a regular cigarette, which plays an integral role when smokers are initially changing from smoking to vaping. Simply stated, smokers will feel like they have a traditional tobacco cigarette in their hand, thus making the transition to quit smoking much easier for them.”