See TPB’s diversified growth through cooperation with VPR Brands

See TPB’s diversified growth through cooperation with VPR Brands

TPB is a company that primarily manufactures, markets and distributes adult products in the tobacco accessories industry through its Zigzag and Stoker's brands, with a focus on the United States and Canada.

Due to the legalization of cannabis in the United States and Canada and the positive development of North American consumers' awareness and acceptance of it, TPB has provided a broad market for alternative smoking accessories.

Currently, TPB business is divided into three product brand organizations. Zigzag product section, Stoker's product section and NewGen product section.

According to data from MSAi:

ZigZag occupies about 35% of the high-end cigarette paper market in the United States. Stoker's products partially distribute wet tobacco and chewing tobacco, accounting for nearly 30% of the U.S. market share. The supplier of Stoker's chewing tobacco is Philip Morris (PM). The NewGen Products segment includes the distribution of different types of nebulizers and sells them directly to its consumers.

In addition to selling these products, TPB has made investments through this segment in a number of cannabis production companies, such as Wild Hempettes, Docklight Brands, Inc. and Old Pal Holding Company LLC.

At present, TPB's main customers are Flamagas (exclusive distribution of CLIPPER® lighters in the United States and Canada), Philip Morris (PM) (TPB chewing tobacco supplier) and recent cooperative customers VPR Brands (selling HoneyStick products in Canada).

TPB ships to approximately 800 distributors in its North American retail network, in addition to 200 secondary and indirect wholesalers in the United States. It sells in more than 85,000 national chain stores, 95,000 independent convenience stores, and approximately 197,000 retail stores in the United States. Available at points of sale, it serves approximately 25,000 traditional retail stores and new cannabis dispensaries in Canada and more than 217,000 total retail locations in North America, as well as direct-to-consumer sales on select e-commerce sites such as Amazon and eBay.

According to Mikail Fancy, Chief Operating Officer of TPB Canada, “We are excited to partner with VPR Brands to bring HoneyStick to a wider audience in Canada. Our expertise in marketing, sales, distribution and logistics, coupled with the popularity of HoneyStick products Quality and innovation are a perfect match, and we are committed to providing excellent service and support to retailers and consumers."

Judging from the company's financial report released on September 30, 2023, TPB has a stable balance sheet and a high leverage ratio.

From the asset side:

TPB has approximately $96 million in cash, approximately $10 million in accounts receivable, and $116 million in inventory. Total current assets reached US$246 million, with a current ratio greater than 1 times. The company has ample liquidity, with properties, plants and equipment worth US$24 million, goodwill worth US$136 million, and total assets reaching US$553 million. The asset-liability ratio exceeds 1 times, and the balance sheet is solid.

See TPB’s diversified growth through cooperation with VPR Brands

From the liability side:

TPB has $10 million in accounts payable, $30 million in accrued liabilities, and $379 million in notes payable and long-term debt, for a total liability of approximately $430 million.

See TPB’s diversified growth through cooperation with VPR Brands

Due to notes payable, the total leverage level is not small, and the financial leverage ratio is close to 2.9 times.

See TPB’s diversified growth through cooperation with VPR Brands

At present, TPB is actively using its international distribution network to accelerate growth. By concentrating ordering, logistics and warehousing in one place, it simplifies the retailer's process, ensures stable supply of products, reduces delivery time, and reduces delivery time within its own distribution scope. Deliver products faster within range.

TPB has strengthened its presence in the U.S. and Canadian markets through strategic partnerships with companies such as VPR Brands and CLIPPER.

In the face of fierce competition in the tobacco accessories industry, TPB is constantly expanding its business boundaries and accelerating growth.
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