Devin LaSarre, Founder and Editor of the Invariant Newsletter on Substack, joins the podcast to discuss his write-up and thesis on Haypp Group (HAYPP.ST).

Quick description on Haypp Group (according to their website): The Haypp Group is spearheading the global transformation from smoking to healthier product alternatives. With origins in Scandinavia our extensive experience from pioneering markets in smoke free alternatives, as well as being a leader in the e-commerce sector, we now fully take our vision to a global scale. With eleven e-commerce brands, the Haypp group is present in seven countries where we served more than 950 000 active customers in 2023.

Haypp Group write-up: https://invariant.substack.com/p/haypp-group-nicotine-pouch-trend

For more information and to subscribe to Devin LaSarre's newsletter, Invariant, please visit: https://invariant.substack.com/

You can Follow Devin LaSarre on Twitter/X @DevinLaSarre: https://twitter.com/DevinLaSarre

Chapters:

[1:36] What is the Haypp Group and why it's interesting to Devin and overview of the smoking alternatives industry

[6:52] Demand for nicotine and oral products (pouches, snus, dips)

[13:44] Haypp Group - investing thesis, why attractive idea to Devin

[17:44] What is differentiated about Haypp Group; why is this not the most competitive, lowest margin business

[23:21] What's a "Zyn-fluencer" and marketing challenges

[26:24] Customer acquisition costs / focus on SEO

[33:06] Haypp Group's pricing and cost structure

[41:01] Alternative smoking product consumer trends, switching up brands

[48:30] Addressing risk factors / Haypp's moat

[57:07] Insights business

[59:47] Regulation risk with selling alternative smoking products online

[1:07:23] Valuation

[1:12:32] Where alpha potentially comes from since Haypp stock's double in last 6 months

[1:18:06] Low capex

[1:21:30] Switching costs from cigarettes to alternative smoking products

Today's episode is sponsored by: Santangel's Review

Finding the right hedge fund cap intro event isn't just about the size; it’s about the value it brings to your time. This month's sponsor, Santangel's Review, offers something unique for fund managers and allocators.

Founded in 2010, Santangel’s hosts three Cap Intro Roundtables each year - two in New York City and one at Fenway Park in Boston. These events stand out for their focus on quality over quantity, attracting some of the most prestigious endowments, foundations, and family offices worldwide.

The secret sauce: Santangel’s spotlights undiscovered talent. Managers you don't necessarily see at other industry conferences.

Attendees take part in eight one-on-one meetings, intermixed with ample networking opportunities. In an industry built on relationships, Santangel's fosters some of the most valuable connections.

Just go to Santangels.com— S-A-N-T-A-N-G-E-L-S dot com to learn more and request an invitation.

If you’re a manager or allocator who is serious about maximizing your time, you'll want to be a part of the Santangel's Roundtable. Click here: https://santangelsreview.com/