Glimpse
Oct 23, 2019 • 5 min read

Nicotine Pouches, Hydro Flask, Jeuveau...

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Vaping was once hailed as a magic bullet for cigarette smokers, but as new health concerns pile up, many people are looking for alternate products to help quit the habit.

One fast-growing category is nicotine pouches, which deliver a hit of the stimulant through small, tea-like bags that users place between their cheeks and gums — kind of like chewing tobacco without the tobacco.

Many consumers report that quitting vapes is even more difficult than cigarettes. One reason behind this may be because of the behavioral economics. With cigarettes, there are practically no sunk costs as lighters are cheap and matches are free. With vaping, this model is very different, where the base device is far more expensive than the consumables. Given the sunk cost, consumers feel more locked into using the product. Of all the options, nicotine pouches are lowest-commitment, priced at around $5 for a tin of 15, which could make them a more effective method of quitting — something than nearly 7 in 10 smokers say they want to do.

The biggest name in the tobacco-free snus space, Zyn, has already captured about 10% of the oral tobacco market in the Western U.S. (where it launched in 2016 before rolling out nationwide this year), and the brand has seen a rise in interest since news of vaping-related deaths emerged in late September.

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For the first time in nearly a decade, Botox has a new rival — a wrinkle-relaxing injectable that sets itself apart from competitors with a different cost structure and a new kind of marketing strategy.

Unlike Botox, which is approved for medical uses such a migraine treatment, Jeuveau is strictly a cosmetic product — an intentional cost-cutting move on the part of its parent company, Evolus. It is passing some of the associated savings onto consumers, pricing the product about 20-30% lower than the competition and encouraging them to seek out the product by name through the “Find a Specialist” tool on its website.

The positioning is part of a larger approach to go after younger consumers with millennial-friendly branding and a strong social media presence. (Its preferred hashtag, #newtox, has been used almost 25,000 times.) Patients under 30 are a small but growing segment for Botox-style injectables who are usually seeking preventative treatment to avoid wrinkles before they set in. Selfie culture is one of the forces that’s helping propel this demand, and drug makers are cashing in.

While it has already seen early success, there’s still plenty of room for Jeuveau to grow. Botox and other botulinum toxin type A injectables were by far the most popular minimally-invasive procedure in 2018, according to the American Society of Plastic Surgeons, with 7.4 million procedures performed in the U.S. alone. Botox on its own generated nearly $3.6 billion in global sales last year.

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How do you sell century-old technology to a new generation of consumers? If you’re Hydro Flask, you flip the marketing around to focus on keeping liquids cold rather than hot — a growing need as outdoor activities like camping become more popular.

The brand uses the same double-wall vacuum insulation developed by Stanley thermos in the early 20th century, but it markets it to a population of aesthetically-minded outdoor enthusiasts. In fact, when the company’s reps were first selling the product, they filled the stainless steel bottles with ice and sent them to prospective accounts in hot climates, demonstrating how long they kept their contents cold.

Hydro Flask itself has been around for a decade, but it’s now tapping into an increasingly environmentally-conscious consumer base. Along with metal straws and reusable tote bags at the grocery store, they’ve become a low-lift way for consumers to publicly signal their values, even as less visible actions — such as avoiding air travel, buying clean energy, or lobbying politicians and corporations for systemic change — are generally far more impactful.

A water bottle is not just a water bottle in today’s world. It’s an environmental statement and a key part of many consumers’ identities, especially for those who carry them to school. Staying hydrated is almost an added bonus.

Post by: Glimpse