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If you have ever wondered why all vape cartridges look the same, then the answer is more mysterious than some kind of industry standardization miracle. The fact is that the ubiquitous black tip glass cylinders are almost all from the same place.
E-cigarette company established in Shenzhen, China
, The company produces patented ceramic filter cartridges for evaporators. Now, CCell has the vast majority of market share.
Most of the vape cartridges you see are from its popular TH2 series, also with white or wooden nibs, and come in three different sizes. Even with only four distributors in the United States, CCell still supplies the entire country with vape cartridges used by cannabis dispensaries and their oil production auxiliary companies.
Two of the CCell distributors, Jupiter Research and 3 Win Corp, are located in Phoenix and Tempe.
"3 Win Corp president Chris Sinacori said: "I don't think they are so close to each other when they give us a contract. "
The license to sell CCell products (which also includes vape batteries) contains a clause that requires the company to only distribute CCell products. That won't bother Sinacori.
He said: "We don't want to have a whole set of really good products and another inferior product." "We only want to sell first-line quality products."
One thing is obvious: the public chose the design of CCell as its favorite. Before the advent of CCell, most ink cartridges used wicks to heat oil (mostly used for e-cigarettes at the time). The innovation of CCell lies in the use of ceramic heating elements, which reduces the possibility of fuel combustion.
From there, CCell took over.
Jupiter Research sold $25 million worth of products in 2017. In 2018, this figure soared to 100 million U.S. dollars, showing no signs of slowing down.
The January 3 press release detailed Tilt’s acquisition of Jupiter Research for US$210 million, a move that attracted the attention of Tilt Holdings Inc., a “vertically integrated infrastructure and technology” company.
"These are crazy years," said Mark Scatterday, president of Jupiter Research. "The mission remains the same, but we will have more resources."
He said that as the company expands into new product areas, this still feels like the "first game."
Tilt paid for two-thirds of the cost of acquiring Tilt’s shares, so Scatterday said he is still very focused on expanding the company, especially in research.
Scatterday said Jupiter Research is more than just a distributor of CCell. The company is also working closely with CCell to improve e-cigarette technology in all industries and other forms of e-cigarettes (such as dried flowers). Five of the company's 35 employees work in China.
Scatterday said that Jupiter Research has a majority of the country's market share. He said that the company imports about 5 million ink cartridges every month, which is a conservative estimate.
He said that nationwide, CCell distributors import approximately 12-15 million ink cartridges per month. Sinakoli is estimated to have 20 million.
Sinakoli said that despite the close distance, 3 Win Corp and Jupiter Research have a good working relationship. Even across the country, if sales representatives find that potential customers already have CCell distributors, they will not try to poach them.
"We are very friendly competitors," Scatterday agreed. "I respect those guys very much."
He even expressed interest in integrating with 3 Win Corp to establish a closer and more profitable relationship.
Distribution companies usually do not sell directly to pharmacies, but grant licenses to a small number of people who produce concentrates, which in turn sell their products to other pharmacies. Sinakori said 3 Win Corp sells CCell cartridges to approximately 50 pharmacies in Arizona.
However, Scatterday says Jupiter Research accounts for about 80% of the toner cartridges in Arizona. He said that Jupiter's customers may occupy more of the overall patient market.
Scatterday said that with CCell's patented technology, customers have almost no choice where to buy ink cartridges, but they are always looking for different options. They can't change the hardware, but they can customize the braces on the ink cartridges or design printing.
Nevertheless, no matter how you dress up, it is still a CCell cartridge, and may have to wait until the next best thing appears.
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