Saturday, November 16, 2024
Home Money Meet the 21st Century entrepreneurs cashing in on vaping craze in Blackburn

Meet the 21st Century entrepreneurs cashing in on vaping craze in Blackburn

0 comments
Success Story: Vape Dinner Lady Founder Mohammed Patel Sells Dessert-Inspired Products in 115 Countries

It was once called “the knitting capital of the world.” But with the textile industry long gone, Blackburn has a new (and perhaps more dubious) claim to fame as Britain’s vaping hotspot.

The former Lancashire industrial town has the country’s highest concentration of shops selling controversial e-cigarettes. There are 22.56 registered vaping outlets per 100,000 residents, according to online vaping retailer Go Smoke Free.

The North West is the worst place in Britain for underage vaping.

Blackburn and the neighboring town of Darwen are also home to some of Britain’s richest vaping tycoons.

These entrepreneurs are profiting hugely from the vaping boom amid concerns about the effects on young people (despite a ban on sales to under-18s) and the environmental impact of discarded e-cigarettes.

Success Story: Vape Dinner Lady Founder Mohammed Patel Sells Dessert-Inspired Products in 115 Countries

Success Story: Vape Dinner Lady Founder Mohammed Patel Sells Dessert-Inspired Products in 115 Countries

Blackburn’s vaping magnates have carved out a lucrative niche in an industry dominated by brands such as Chinese-owned Elf Bar, which has 70 per cent of the market, and giants such as British American Tobacco.

The growing number of vapers has helped line their pockets. The number of people vaping grew by 9 per cent to 4.7 million in 2023, according to anti-smoking campaign group Ash. Some 230 specialist vaping shops opened last year, bringing the total across the UK to 3,573, according to Local Data Company.

Separately, market research company NIQ and trade magazine The Grocer found that vape sales were worth £897 million in 2023. The Government, which has promoted vaping as a way to help smokers cigarettes to quit smoking, has spotted a much-needed revenue-raising opportunity. Ministers are said to be considering a new tax on vaping, which could be introduced in next week’s budget.

There is no obvious reason why so many unrelated vaping companies, whose owners are not linked, have formed a group in a small area of ​​Lancashire.

However, Blackburn can boast being the home of other high-profile businessmen, including the Issa brothers, Zuber and Mohsin.

In the 1960s, his parents moved from India to Blackburn. The brothers, who grew up in a terraced house, now own the Asda supermarket chain.

Blackburn was named one of the UK’s most entrepreneurial towns in 2022, based on the number of new small businesses created.

Another Blackburn founder making waves is Mo Isap, a tech entrepreneur who recently secured a deal for his award-winning IN4 Group business with energy giant Saudi Aramco, one of the world’s largest companies.

Philip Boyle (pictured) and his business partner Nathan Walton founded Flavor Warehouse 12 years ago

Philip Boyle (pictured) and his business partner Nathan Walton founded Flavor Warehouse 12 years ago

Philip Boyle (pictured) and his business partner Nathan Walton founded Flavor Warehouse 12 years ago

Philip Boyle

Estimated value: £114 million

Company: Flavor Warehouse

Sales: £140 million

Profit: £22.2 million

Philip Boyle and his business partner Nathan Walton founded Flavor Warehouse 12 years ago.

It currently produces 30 million bottles of liquid per year and sells in more than 80 countries. As well as its base in Darwen, it has a factory in Guildford, Surrey. The company employs 300 people and aims to be “the most trusted vaping company in the world” by taking “full control of the entire production process.”

According to its most recent accounts, turnover rose 95 per cent to £140m in 2022, and profits almost tripled to £22.2m. Boyle earned the lion’s share of a £3m dividend, up from £42,253 the previous year.

Its flagship brand is Vampire Vapes and export sales reach as far as Eastern Europe and the United States.

It also acts as a wholesaler for brands such as Elf Bar and has expanded into retail, running its own Vapestore stores.

The company owns the Premier Retail convenience store brand. Boyle, 40, sits on the board of the British Independent Vape Trade Association. That organization “exists to give the independent vaping sector a voice before government bodies, regulators, law enforcement agencies and many other stakeholders,” while being “free from the control of any tobacco business.”

Former salesman Boyle now lives in a £1.2 million mansion in Clayton-le-Dale, a luxury village located in the Ribble Valley, near Blackburn.

Mohammed Patel

Company: Vape Dinner Lady

Sales: £24 million

Profit: £2.9 million

Another big Blackburn success story is Vape Dinner Lady, which boasts of selling its dessert-inspired liquids in 115 countries. Its unusual flavors include Berry Blast, Melon Twist and Kiwi Melon. Founded in 2005 by Mohammed Patel, 43, it was named Best Vaping Brand in 2022 at the ‘Vaporound’ industry awards and employs 200 people.

Turnover rose to £24 million in 2022, up from £15.3 million the previous year, while profits almost doubled to £2.9 million.

Total dividends of £8 million were paid in the last three years. The company is rebuilding its base in Blackburn after a devastating fire last September and has moved production to “multiple international centres”. Patel said he created it because he was “captivated” by the booming business of vaping as an alternative to smoking. “But the real motivator was my own experience with using e-liquids,” he said.

“Despite the wide variety of products and flavors available, in my opinion the offering was simply not great.”

Christopher Parker remained CFO

Christopher Parker remained CFO

Christopher Parker remained CFO

Matthew Moden, Christopher Parker and Abraham Spain

Estimated value: £14.5 million

Company: Freedom Flights

The three founders of vaping company Liberty Flights shared up to £14.5 million when they sold their Darwen-based business to retail group Supreme in 2022. Founded in 2009, the company had grown its annual sales to £9 million and profits to £1.5 million.

At the time of the sale, it had a thriving convenience store sales business. It also launched a rechargeable vaping device called Dot Pro. Liberty Flights has seven stores and a brand that sells dozens of varieties of liquids used in e-cigarettes.

Christopher Parker, 36, remained as chief financial officer after the liquidation, but Matthew Moden, 50, and Abraham Spain, 46, headed for pastures new with their fortunes.

Jason Cropper and his brother Fraser, pictured, founded Totally Wicked in 2008.

Jason Cropper and his brother Fraser, pictured, founded Totally Wicked in 2008.

Jason Cropper and his brother Fraser, pictured, founded Totally Wicked in 2008.

Jason and Fraser Cropper

Estimated value: £107 million

Company: Totally evil

Sales: £90 million

Profit: £1.6 million

Jason Cropper and his brother Fraser founded Totally Wicked in 2008 and are believed to have a similar fortune to Boyle. The Blackburn-based company, which employs more than 370 people, has seen a rise in sales, almost doubling to £90.4 million in 2023, up from £54.4 million in the year former. Profits increased from £360,000 to £1.6 million in 2023.

Ex-smoker Jason, 59, once even kept gold bars in his home. He resigned from the business in 2013 after refusing to retract comments about e-cigarette licensing in a controversial email to regulators.

Fraser, 57, remains at the helm as CEO. He lives with his wife in a £700,000 house in a Somerset village.

But the business brothers remain close to their East Lancashire roots and sponsor Blackburn Rovers Football Club.

Jason was the victim of a shocking robbery at his home in Samlesbury, Lancashire, in 2013. Four masked robbers armed with crowbars broke into his home, before tying him up, dousing him with bleach and covering his head with a towel.

They took his £60,000 Range Rover, two gold bars worth £50,000, plus £70,000 in cash and three expensive watches.

The tycoon suffered head injuries and was unable to walk properly for a week.

He said he believes the gang robbed him because they thought he had £4m worth of gold in his home.

After the raid he spent around £20,000 on advanced security for his £750,000 home, including 10 cameras, lights, 8ft fencing, a monitored alarm system and a guard dog.

The local vaping companies mentioned were contacted for comment.

Some links in this article may be affiliate links. If you click on them, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

You may also like