Must Have e-cigarette vendor to open 40 outlets in 12 months

A firm which sells its own brand of electronic cigarettes today unveiled a nationwide expansion of its retail concessions. Must Have currently operates 24 standalone concessions in shopping malls nationwide, including ones in Bury, Middleton and Stretford in Greater Manchester and, further afield, in locations such as Newcastle upon Tyne and Chelmsford. The Radcliffe-based firm has opened 12 of them in the past six months and today announced it would launch a further 40 over the next year, in a joint venture with an unnamed retail partner.

Must Have, founded by David Levin and Miguel Corral in 2004 as an online electrical goods retailer, developed its own brand of e-cigarettes called VIP in 2008 following a decline in demand at its core business. The VIP brand is sold online and through concessions, and the duo said it has seen huge growth in demand. Electronic cigarettes contain pharmaceutical nicotine, which is also used in nicotine patches, to help wean smokers off cigarettes, and they can be ‘smoked’ indoors. They produce a vapour, providing the physical sensation of tobacco smoking when inhaled. Must Have employs 10 staff at its headquarters and 72 people operate the concessions. It expects revenues from VIP to reach £4.3m for the year to the end of this month and £10m in the next financial year.

Mr Levin said: “When we launched into the market, the concept was still new, but it has gained momentum over the last 18 months, as people have become more aware of the products, which look more sophisticated than when they first entered the market. “We have spent three years developing the VIP brand with our customers in mind. We offer a range of e-cigarettes, including one with zero nicotine and flavoured ones. “Most of our clients choose e-cigarettes because they are cheaper to buy and do not contain some of the harmful substances found in real cigarettes.

“The demand for this product is growing at a very fast pace, and we want to expand our business throughout the UK to meet this demand.” The VIP range is also sold to around 300 pharmacies and newsagents in the UK, and there are plans to launch a franchise model to expand the business further. “We've had a number of people who have asked us about franchising opportunities and it is something we are looking into,” said Mr Levin.