The vape industry is booming, but nicotine vapes face increasing regulation and scrutiny. Flavored nicotine products are being pulled from shelves and losing favor with consumers. Endexx Corporation, a rapidly growing company making strides in the nutraceutical technology industry, is working to fill that void with non-addictive, plant-based vapes through its recent acquisition of Hyla.
Hyla is a first-of-its-kind plant-based, non-addictive, and nicotine-free vaporizer using natural ingredients like guarana and L-Dopa. These revolutionary products are poised to offset nicotine-based products as more consumers search for alternatives.
Today, Todd Davis, Founder, CEO and Chairman at Endexx, talks with us about Hyla’s astronomical success, the challenges and opportunities of this industry, and the future for vape products as a whole.
What inspired Endexx to acquire Hyla, and how do you see this acquisition helping your company achieve its goals?
The power of plants is built into all of Endexx’s consumer products. Hyla’s unique approach to the vape market harnesses that power, so it was a natural fit.
What made Hyla a compelling investment opportunity, and how did you evaluate its potential in the market?
Mounting pressure on nicotine-based vape companies has created a void of products that fit consumer demand. Shelf space is at a premium in the market; we have the products to fill that space.
What investment does Endexx plan to make in Hyla’s growth, and how will you measure success in this product line?
The primary target is introducing Hyla’s innovative products to international and domestic markets. Our overarching mission is to become the dominant player in plant-based vape products.
What are the key challenges you anticipate in growing Hyla, and how do you plan to address them?
There is a stigma against “flavored vape products” in the market. Ingredients like nicotine should be the target, but the only way regulators can push back on nicotine products is to target flavors. Hyla offers the absolute best alternative in the market to nicotine-based products.
How do you see Hyla contributing to Endexx’s overall growth strategy, and what impact do you anticipate it having on the company’s financials?
The impact has been immediate. In the first two quarters since we acquired Hyla, Hyla’s international revenues have far surpassed any previous year in gross sales of Endexx. International opportunities are opening tremendous cross-market channels as well.
What are Endexx’s plans for international expansion, and how does Hyla fit into this strategy?
Hyla has established distribution in 13 countries and counting. These markets add tremendous potential for expansion in all of our consumer products.
What message do you want to communicate to investors and customers about Endexx and Hyla?
Consolidating revenues from Hyla into Endexx exponentially expands top-line revenues by several hundred percentage points. These extraordinary numbers have put Endexx on a three-year projection in excess of 50 million in annual revenues.
How does Hyla differentiate itself from other nicotine-free disposable vape products?
Our high-quality ingredients and unique formulations set Hyla apart from the competition and bring new benefits and experiences to the consumer. Plant-based vapes deliver our natural, non-addictive ingredients in an effective manner.
What role do L-Dopa and Guarana play in Hyla’s formulation, and how do they contribute to the product’s effectiveness?
Guarana and L-Dopa have unique qualities that bring myriad benefits to the user without the addictive nature of nicotine. Both ingredients are commonly said to enhance focus, aid in relaxation, boost energy, and encourage calmness.
What is your vision for the future of the vaping market, and how do you see Hyla contributing?
Clinical tests of plant-derived molecules in the clinical setting indicate that vaping is a superior delivery system for low-dose and micro-serving portions of these powerful plant derivatives. A little goes a long way with plant power.
Who uses Hyla and who should use Hyla? What kinds of customers have you seen attracted to these products?
Our early customers primarily enjoy vaping but seek a different experience than tobacco or nicotine-based products. Plant-based alternatives offer a potentially healthier option for people who enjoy vaping.
What kind of feedback have you received from consumers and retailers about Hyla, and how have you used this feedback to improve the product?
Quoting user feedback can be viewed as making claims, so we must be prudent in this case. Many consumers say they experience a sense of calm and a reduction in stress. Some have indicated that there is a significant reduction in the need for nicotine after using Hyla products.
What has been the response to Hyla from retailers and distributors, and how do you plan to continue growing your distribution channels?
Our retailers are reporting rapid sell-through as the customers feel they are getting extreme value with 4500 puffs per device. Customers also love the form factor, flavor profiles, and ease of use.
How do you see the regulatory environment for CBD and nicotine-free vaping products evolving, and what impact will this have on Endexx’s business?
HYLA’s success is adding exponential growth and increasing revenue for Endexx. The regulatory environment will continue to be challenging as policymakers try to regulate flavor instead of addictive ingredients like nicotine. Our products are non-addictive, and the flavors are derived from plant-based natural sources, separating them from flavored nicotine vapes.
What kind of consumer education efforts will you be undertaking to promote Hyla and its benefits to the market?
Endexx will separate education from sales to maintain compliance with current regulations. Educating consumers on the potential benefits of individual ingredients will provide a stronger basis for informed decision-making for customers.
How does Endexx ensure the quality and safety of its products — including Hyla — regarding concerns about vape product safety?
HYLA manufactures its proprietary formulations in American laboratories. Each batch is tested for purity and safety in accordance with current regulatory and compliance standards in the USA.
How do you manage risk and uncertainty in the highly regulated and constantly evolving CBD and vaping markets?
Compliance and engagement with regulators help keep us at the forefront of regulation. Preparing and ensuring continuing compliance are the investments we make in our evolving markets.
How does Endexx ensure that its products, including Hyla, comply with applicable regulations and laws?
Endexx constantly monitors rules and regulations in the industry. We work with experienced legal and compliance partners before producing products for the consumer market.
How do you balance the need for innovation and growth with maintaining quality and safety standards for your products?
Since we launched our consumer product lines, science and compliance have been the cornerstones of Endexx’s development and production. Innovation comes from science, and quality comes through compliance with industry standards across established industry protocols.
What is your approach to product innovation, and how do you plan to continue improving Hyla?
The vaping device industry offerings have limited value propositions to the consumer. Hyla has designed high-output, long-lasting products that offer a price point and formulation that consumers can support and rebuy over time, creating strong brand loyalty for HYLA.
What lessons have you learned from your experience in the CBD space, and how do you apply them to approaching Hyla?
Consumers are getting more educated and more interested in high-quality products. CBD Unlimited built and sold the highest quality products on the market. Hyla reflects that exact same model: producing the highest quality products at affordable prices to meet the needs of our consumers.
How do you prioritize and balance the demands of your different product lines?
Not all products can survive in the market. We focus on the products adopted quickly and generate high rebuy rates. In the first six to 12 months, the consumer clearly indicates to us which products they like the most. Once we have that information, business decisions are much easier to make for long-term success.
What kind of partnerships or collaborations do you see as crucial for Endexx’s growth in the nicotine-free vaping and CBD spaces?
Hyla is targeting the largest and most efficient distributors in each country they pursue. There is a huge gap in the tobacco and vape industry now that nicotine products are being pulled from shelves. Endexx, through Hyla, is here to fill that void and provide an entirely new product that fills the needs of the current market and offers a “Better Product for a Better You.”