Poda Lifestyle and Wellness Ltd. (CSE: PODA) has something to prepare for the Chinese market of 400 million smokers
Keith Schaefer, investment whisperer | June 9, 2021 | SmallCap Power: Poda Lifestyle and Wellness Ltd. (CSE: PODA) owns a very valuable patentââ THE ONLY patent protected Heat-not-burn system that does not need cleaning.
(The following article was originally posted on investwhisperer.com)
The future of the tobacco industry is smokeless products â and in particular Heat-Not-Burn. ESG is here to stay, and the appeal of smokeless products is that they remove harmful chemicals and byproducts that smokers absorb into their bodies.
This is the fastest growing industry that no one has heard of here in North America. In Europe and Asia, it’s huge â and it’s about to get really big, really fast, here, now.
JUUL came out of nowhere with vapers to become a multi-billion business in 36 months.
TAAT-CSE released a nicotine-free stick and went from 75 cents to $ 5 in three months. Smokers want a healthier product and the stock market knows how big it can be.
PODA is that same kind of business. The size of this Heat-not-burn the opportunity is magnificent.
Philip Morris (NYSE: PM) plans to be 50% of its income smoke-free by 2025 â¦â¦. And 100% of its income smoke-free in just ten years.
We are talking about a US $ 135 billion market capitalization company that wants to change ALL its customers into Heat-not-burn. Wow! Talk about going all-in!
And PODA has
- their Heat-not-burnfinal product
- aligned manufacturing and
- their issued patents.
It is the cleanest and most convenient product for this multi-billion dollar market.
This market will grow from zero to $ 50 billion in North America in just a few years.
I thought automakers were taking the transition to electric cars seriously, but what Philip Morris plans to do with the speed of their transition is a shame.
Since Philip Morris believes smoke-free will be the future, that means a tobacco market that accounts for $ 800 billion in revenue each year is on the verge of a complete transformation.
There is no company with more weight for this massive transformation than PODA.
PODA has built its pilot production plant to manufacture the cigarettes that go into their Heat-not-burn device. It can now produce 400,000 units per month and can quickly reach even higher levels.
If you’re a smoker who smokes 10 cigarettes a day – or 3,650 a year – with the PODA device, you’ll get the same experience with everyone. The flavor is always fresh. With all the other options, even with all the cleaning, this is not the case.
It is an EXCELLENT product for consumers, it is cleaner and much less harmful than traditional smokes. I think the PODA device will play a big role in the great transition of this massive market.
PODA’s Different Approach Makes It A Winner
Unlike Philip Morris and the rest of THE INDUSTRY ââ PODA has taken a different approach to Heat-not-burn and developed a fully closed capsule.
The PODA device has an airflow channel where air is drawn in from the side, drawn down into the capsule, and then out to the center of the capsule.
This completely isolates the airflow inside the stick and there is no contamination of the contents of the stick.
That’s the KEY: Every time the smoker uses it, the experience is EXACTLY THE SAME, unlike IQOS and any other device that steadily decreases in performance without constant cleaning.
Can you imagine someone who smokes 20 cigarettes a day, 365 days a year, 7300 times a year, stuck in an endless cleaning loop?
Some people are clearly willing to do this because Heat-not-burn already has a 25% market share in Japan, but there’s NO CHANCE that they would choose to do all of that cleaning if they could just use a PODA device instead.
INDUSTRY looked into the problem by trying to adapt a cigarette to a heater, while the PODA team instead focused on building the best Heat-not-burn system with unconventional thinking.
Their new take was the only one that resulted in a closed loop and a Heat-Not-Burn product that didn’t require cleaning or develop an unpleasant odor.
As a result, PODA was able to apply for and obtain an incredibly broad full patent to protect its technology from the competitionââA HUGE WIN because they’re the only company that can now have a closed cigarette.
CHINA IS A HUGE MARKET FOR PODAâ¦â¦ AND THEY ARE AHEAD OF THE LEAD
But â MY ABSOLUTE FAVORITE PART of this story â this is what PODA has prepared for the Chinese market of 400 million smokers. The company has partnered with Daniel Chen who already owns the best-selling brand of alternative cigarettes, a Heat-not-burn branded with herbal ingredients derived from tea.
I spoke with Chen â and he loves the PODA product offering and is preparing to roll it out in China as the first real Heat-not-burn product that the country has seen.
This puts PODA (and Chen) in the position of having:
1 – The only non-cleaning Heat-not-burn device
2 – In first position
3 – In the biggest tobacco market in the world
With PODA manufacturing in China and Japan showing how quickly smokers board the Heat-not-burn train I look forward to seeing what PODA can accomplish in China over the next 24 months.
PODA = Clean, Convenient
Heat-not-burn is about to go from 0 to 100 miles an hour here in North America and around the world, as Philip Morris shows.
The reasoning is very simple:
1 – It is the most profitable product to sell for INDUSTRY. So that’s what they want to push.
2 – It is the smoke-free product that comes closest to the real cigarette that we can get, so it is also the preferred choice of the consumer.
Heat-not-burn has been off the radar for us in North America because the FDA just approved Heat-not-burn for sale. And we can turn to Japan, where Heat-not-burn has gone from no market share to 25% of the entire tobacco market in 5 years, thereafter.
Clearly, the consumer is ready to embrace it.
PATENT PROTECTED AND READY TO RIDE
PODA is fully patent protected and ready to roll.
They have what I think is clearly the best fit for one of the fast growing multibillion dollar markets you’ve never heard of.
You can see how important the smoke-free market is to Philip Morris from the start of their Analyst Day presentation for this year:Heat-not-burn, Slide TwoâHeat-not-burn, Slide 3 – the sameâ¦ and so on.
They accepted that this is the future.
Philip Morris has bet on smoke-free, and they are the most optimistic about Heat-not-burn More precisely. They do have this nagging IQOS weakness thoughâ¦ you can see it by the constant hammering of the cleansing message they do.
PODA has the only offering that does not require cleaning, has no odor and has the best performance.
PODA has the Heat-not-burn solution â ZERO CLEANING â that everyone needs; both customers and INDUSTRY.
DISCLOSURE: Keith Schaefer owns over one million shares of PODA.
PODA TECHNOLOGIES reviewed and sponsored this article. The information in this bulletin does not constitute an offer to sell or a solicitation of an offer to buy any securities of any company or entity, including securities traded in the United States or securities listed in the United States. United States, United States or United States persons. Securities may not be offered or sold in the United States except in accordance with the registration requirements of the Securities Act and applicable US state securities laws or in accordance with an exemption therefrom. Any public offering of securities in the United States may only be made by means of a prospectus containing detailed information about the company or entity and its management as well as financial statements. No securities regulator in the United States has approved or disapproved of the content of a newsletter.
Keith Schaefer is not registered with the United States Securities and Exchange Commission (the âSECâ): as a âbroker-dealerâ under the Exchange Act, as an âinvestment advisorâ in under the Investment Advisers Act of 1940, or in any other capacity. He is also not registered with any state securities commission or authority as an investment broker or advisor or in any other capacity.
To read our full disclosure, please click the button below:
The content of this page (including any facts, views, opinions, recommendations, descriptions or references to products or titles) made available by SmallCapPower / Ubika Research is for informational purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated with it and should not be used or construed as an offer to sell, solicitation of an offer to buy, or approval, a recommendation or sponsorship of any entity or security by SmallCapPower / Ubika Research. Readers should apply their own judgment when using any content, including, without limitation, using any information contained therein as the basis for any conclusion. Readers are responsible for their own research and investment decisions. Before making any investment decision, it is strongly recommended that you seek advice from a qualified investment advisor. SmallCapPower / Ubika Research does not provide or guarantee any advice or financial, legal, tax or accounting advice regarding the suitability, profitability or potential value of any particular investment, security or source of information. . Ubika and / or its affiliates and / or their respective officers, directors or employees may from time to time acquire, hold or sell securities and / or commodity and / or commodity futures contracts in certain sub-companies. mentioned in this site and who may also be customers of Ubika subsidiaries. In such cases, Ubika and / or its affiliates and / or their respective officers, directors or employees will use all reasonable efforts to avoid engaging in activities that would result in conflicts of interest and Ubika and / or its companies Affiliates will make all reasonable efforts to comply with disclosures and conflict of interest regulations to minimize conflicts.