NJOY Electronic Cigarettes Receives $20M Investment

SCOTTSDALE, Ariz. – Electronic cigarette brand NJOY has received a $20-million investment from Catterton Partners, a consumer-focused private equity firm with a portfolio that includes Kettle Foods, Odwalla and Sweet Leaf Tea.

The investment, which is being made by Catterton Growth Partners L.P., will be used to accelerate NJOY’s brand awareness, growth and other business development opportunities, according to the company’s announcement.

“NJOY and Catterton are a terrific fit, as both companies are the ‘Gold Standard’ in their respective businesses,” said Craig Weiss, president and CEO of NJOY. “We welcome Catterton not just as an investor, but as a strategic partner that can help take NJOY to the next level.”

Catterton Partners is banking on its investment to continue the momentum of NJOY’s market leadership in the category.

“NJOY is a market leader with outstanding products that have significant consumer appeal and are poised for broader acceptance in the marketplace,” said Michael Farello, a partner with Catterton Partners. “With its wide network of distribution partners, deep new product pipeline and a strong executive team, NJOY is positioned for significant growth. We look forward to working with NJOY and utilizing our financial and operational resources, as well as our expertise in consumer products, to support the company’s long-term business plans and success.”

Roy Anise, executive vice president of NJOY, said Catterton chooses only the best companies in which to invest, as evidenced by the firm’s outstanding track record. “With Catterton’s help, their portfolio companies have significantly increased their brand strength, distribution and market share, and these are the same goals that we have for NJOY,” he said.

Scottsdale, Ariz.-based NJOY is available in more than 20,000 retail locations nationwide, including more than half of the nation’s top 20 convenience store chains. The brand offers a variety of rechargeable and non-rechargeable electronic cigarette products made for adult smokers. According to NJOY, these products provide nicotine and rich tobacco and menthol flavor without smoke or odor, and cost less than traditional cigarettes.

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23 comments ↓

#1 egic on 04.10.12 at 9:28 AM

This is a wake up call to tobacco that has ignored this category — e-cigs may well be the safer cigarette that is chosen by the consumer (as opposed to developed for them by the industry).

#2 Candy Girl on 04.12.12 at 11:08 AM

This is a serious investment from a reputable investment group. Sends a strong message that Wall Street private equity believes in the company and, more importantly, the future of the product and the industry.

#3 Miami Heat on 04.15.12 at 6:47 PM

Imagine what is going through the minds of senior management in Richmond Va. What do we do now? This came out of nowhere! Can we rally our team of the FDA, Big Pharma and TFKs??? I love my e-cig!

#4 Parker Madeira on 04.16.12 at 6:21 PM

Let’s hope that NJOY uses some of this cash to come up with a higher quality product that has a chance against the FDA…instead of just revving up the marketing of their current mediocre one.

#5 Vapor Vixen on 04.17.12 at 12:40 AM

It will be very interesting to see what this does as I agree with Parker. Sooner or later the NJOY product will be surpassed by other products that are just clearly much better. It looks like several of the other companies are also experiencing financial issues. Vapor Corp has a pretty sad looking balance sheet especially with so much risk! Mistic has a situation financially also. NJOY has a product issue! I just hope sooner or later one of the better products begins to emerge!

#6 Candy Girl on 04.17.12 at 1:34 PM

It’s profoundly naive to think that success in this business or any other, for that matter, is just about product quality. It’s about that, but it’s equally about capital and connections- wholesale distribution and retail placement. NJOY now has the capital and in the past year has salted its sales team with Altria vets. Most of the better e-cigs I have tried over the years have now disappeared because of lack of management and lack of capital. It’s a three legged stool and NJOY has two of them- that puts them ahead of just about everybody else. I too wish their product was better- but it won’t stop their march toward retail domination.

#7 popgoesweasal on 04.20.12 at 5:06 AM

The FDA has orders from Richmond to ban all characterizing flavors from e-cigs, which will kill entire industry. Wait a few months and see!

#8 Copenhagen Charley on 04.21.12 at 5:28 PM

you must be referring to the FDA’s bed partners?

#9 Electronic Cigarette Ireland « EcigLiveNews on 04.23.12 at 12:45 AM

[...] NJOY Electronic Cigarettes Receives $20M Investment …Electronic cigarette brand NJOY has received a $20-million investment from Catterton Partners, a consumer-focused private equity firm with a portfolio that …www.tobaccotoday.info/…/njoy-electronic-cigarettes-receives-… [...]

#10 tobaccoMan on 04.23.12 at 12:45 PM

If we cannot use flavors in cigarettes, why should the e guys get a better deal? You all can whine to your hearts content but fair is fair.

#11 Copenhagen Charley on 04.23.12 at 3:02 PM

yes but mst and cigars have flavors

#12 E-Cig Master on 05.05.12 at 8:31 PM

Yea especially the cheap and nasties like Backwards cigars.

#13 TooFunny on 05.06.12 at 12:25 AM

Tobacco and menthol flavors are more then enough. Have you tasted the variations of e cig tobacco flavors!? They can be amazing! No one actually wants the taste of true tobacco… It’s gross. A well tailored Ry4 is a beautiful thing.

#14 Candy Girl on 05.06.12 at 4:17 PM

There is real concern about certain of the flavored e-cig cartridges imported from China- like most of them; although some flavored cartridges are made in the US under quality conditions, i.e. Johnson Creek. Some of the low end imports are flavored with non-food grade scents, instead of food grade flavorings. They can be nasty- albeit aromatic!! My experience has been that some of the Chinese manufacturers do not know the difference between a flavor and a scent!!

#15 Copenhagen Charley on 05.06.12 at 7:17 PM

I just tried a Njoy menthol onejoy – one word – awful -ugh

#16 Candy Girl on 05.06.12 at 7:55 PM

NJOY has capital, distribution and great retail placement. But- their ONE JOY disposable product is not a quality product. It’s over priced, weakly flavored and produces a thin, inconsistent vapor. NJOY’s NPRO rechargeable, replaceable unit is a really good product. Clearly NJOY’s heart is not in disposables. The dirty little secret is that the most successful US e-cig companies hate the disposables- no margins (the replaceable cartridges are where the real money is!), quality issues and looming battery safety issues. Lorillard paid $135 million for Blu Cig, a company that specializes in rechargeable/replaceable kits.

#17 Smokers Emporium on 05.17.12 at 3:14 PM

We sell several different disposable e-cigs at our smokeshop including Krave, Lava, Nova, Viper, NLA and a couple others. By far we sell more viper than anything because they have the most puff count (800) and actually taste good. We use to sell mostly Krave 500 puff but it was only because they were heavily marketed and one of the firsts around. Their flavors are horrible in my opinion. Try a viper disposable if you come across them in your state. The ones we sell are pre-priced $6.99 for 800 puff but I don’t know if the pre-price is just a promo in Michigan or not. The label has a website viperecig.com… Maybe they can tell you where to get the cheaper pre-priced ones. I quit smoking but I will admit i do cheat with e-cigs! They calm my nerves but don’t make me feel nasty like real cigarettes. I do agree though that some of the most popular brands are nasty… People will buy anything it seems! With some of the crazy anti smoking commercials that come on tv I’m shocked people still smoke real cigarettes as much as they do! Some of those commercials are a straight to the point wake up call!

Chris / Smokers Emporium Michigan

#18 technosmoker on 03.05.13 at 1:36 AM

I’m a smokeshop owner in St. Louis and recently started carrying Viper E-cigs (http://www.viperecig.com). To be honest, my customers like them better than blu e-cigs but the customers who enjoy rechargeable kits and liquids are a strong customer base.

#19 sdf@sdg.com on 03.05.13 at 9:45 AM

Congratulations on your new OTP product — the link is really helpful. Generous that you promote Viper more eagerly than your own business location!

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thinking i should delete the two commercials
what you think?

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