It took a few years to go from working in a Netto store to leading an award-winning company in the e-cigarette and harm reduction industry. But Michael Fredén has managed to combine a burning passion for entrepreneurship with his interest in vejpning - and now he's hit a home run.
Michael Fredén is by no means alone in running Vapes.se, one of Sweden's larger vejp companies. He has two partners with him in the form of a cousin and an old friend - Rasmus Björk and Daniel Leis. But he is still the one who laid the foundation for the company and has become the face of it in the form of CEO.
In a way, it all started at my grandfather's bakery back home in Lidköping.
- I've always been interested in entrepreneurship because my grandfather had a home bakery in the city that sold bread to various shops. I was there and practiced in the summers and other things and thought it seemed cool to run something of my own, says Michael on a visit to Vapes store in Gothenburg.
Wanted to find alternatives to cigars
Michael made the relatively common journey from cigarette smoker to vejp user quite early on. He was also into flavored hookahs, so when he came across e-cigarettes, it was a perfect substitute. But it didn't happen right away.
- I wanted to find a healthier alternative and ordered e-cigarettes online. I can't quite remember what year it was - but it was before you could find pod systems and bigger machines. But back then I didn't think they worked very well or satisfied the need," says Michael.
This is where his friend and one of the other partners in Vapes, Rasmus, comes in.
- He came to my house and showed me an e-device and e-juice that he had and I just felt: wow!
The entrepreneurial spirit took over
The story could have ended there. No more cigarette smoke and a healthier alternative found. But Michael, with his entrepreneurial spirit, saw bigger opportunities than that.
- It felt like something new, and if it can work for me, it can work for others. So I asked Rasmus if he wanted to be involved in starting a business and we also called my cousin Daniel Leis who just said "hell yes!", Michael laughs.
The trio has stayed together ever since, and according to Michael, the specific mix of people is a strong contributing factor to why it has done as well as it has.
- We sync so incredibly well. We have different ways of thinking, but together it is so damn good. I am probably the one who is leading in running projects and looking at the development ahead. Rasmus keeps track of finances and staff, and Daniel is a fantastic programmer and designer and is the brain behind the website," he says.
Early adopters of e-cigarettes
Vapes was registered as a company in 2014 and launched in 2015 when Michael was 24 years old.
- We did what you do when you start a business. Checked the market and tested ourselves until we found a range that was appealing to both ourselves and our customers.
There were some other players in Sweden, but not so many compared to today. Vapes was early on the scene and could sow in new soil.
- We didn't know how big it would be, but we wanted to do it our way and as best we could. We still felt that we could be one of the front companies and that it would work to run it," says Michael.
Good working environment is important
Vapes does not produce its own materials such as juicers or machines, like some other players in the industry, but has focused entirely on distribution and sales. Instead, Michael says the recipe for success is to put customers first.
- Having the best customer support in the world and listening and caring about customers, being there if they have questions. In the company in general, we are very concerned about each other, the staff and having a good working environment. And that also spreads out to the customers.
From e-commerce to physical store
Vapes started with e-commerce, but today has a physical store at home in Lidköping and one in central Gothenburg.
- It was classic to start at home in the closet of an apartment. Then we got our first small premises in a basement when we were still operating entirely online," says Michael Fredén.
The reason they took the extra step to open the first physical store is because customers seemed to expect it.
- People started to find us there in our basement and came to shop. "Oh ... we only have an e-commerce" we had to answer, but yes - then we got a premises in Lidköping and opened our first store.
"Scary to leave the small town"
Gradually everything rolled on. Stock and the number of customers grew and in 2019 it was time to open the store in Gothenburg.
- It was cool but also a little scary to leave the small town and go towards the big city. But it turned out well and feels great.
In addition to its two stores and e-commerce, Vapes also wholesales and sells to other stores.
Award by Dagens Industri
"DI Gazelle" is an annual award given by the magazine Industry Today to Sweden's fastest growing companies that meet certain criteria. Among them, a net turnover exceeding SEK 10 million and at least ten employees are required, according to the latest annual report. The company must have at least doubled its turnover over a four-year period and increased its turnover every year for the last three years. Vapes met all these requirements and became one of the 2023 winners.
From high school straight to work
For Michael Fredén himself, all this means that he has gone from being an ordinary wage earner to a successful business leader.
- I went to high school and then I started working straight away, as I'm a more practical person. But it has been cleaning, newspaper delivery and the first permanent job then was to work at Netto. I really enjoyed that - dealing with customers and providing service.
Dual jobs as an entrepreneur
Later, he ended up in industry, as a press brake operator in sheet metal followed by the insulation industry.
- But in the end I only worked weekends, and Monday to Thursday I worked on building up Vapes. In the beginning, it was a side project for all the partners, then it became a double job. But it worked in those days," laughs Michael.
- Then came the big day when you had to leave the security of employment and throw yourself out. It was really scary at first, but at the same time incredibly big," he continues.
"Feels natural"
To outsiders, going from a rather ordinary "kid" to an acclaimed CEO may seem like a big step, but Michael himself feels comfortable with the development.
- It feels quite natural. But you learn things all the time and are never fully educated. For example, I had quite a hard time in school, but when I take an interest in something, I learn quite easily.
More order without a taste ban
What lies around the next corner for both Vapes and the industry is not easy to predict.
- It is not an easy industry in that way. When there was a vote in Parliament on a possible taste ban, it was probably tough for everyone. You don't know what the future will look like. I talked to a colleague in Denmark, where they have introduced a taste ban, and the problem that arises then is that you open up a black market. So I think it's very positive that we allow flavors in Sweden, at least for the time being. It will be more orderly that way.
Make the best of the situation
However, Michael and the others at Vapes don't go around worrying about what the future might look like.
- No, you don't know anything. It's fun while it lasts and you have to make the best of the situation that arises. There will probably be changes, but there always are.
Facts: Michael Fredén and Vapes
Michael Fredén
- Born: 1990
- Family: One son
- Lives: In Lidköping
- Does: CEO of Vapes
- Unexpected info about Michael: "I helped Coca Cola report bugs in their flash games as a 10 year old, on the web. Or I was probably 13, now that I think about it..."
Vapes(.se) - Vapes International
- Vapes is run by three friends, Michael Fredén, Rasmus Björk and Daniel Leis.
- Has Sweden's largest range of e-cigarettes, e-juice and accessories.
- Registered as a company in 2014 and launched in 2015, initially as an e-commerce only
- Today has two physical stores. One in my hometown Lidköping and one in Gothenburg.
- Awarded the DI Gazelle prize in 2023 by Dagens Industri magazine
