News Release 11/12/2013
News Release 11/12/2013
VICTORY EXPANDS INTERNATIONAL DISTRIBUTION WITH COMPREHENSIVE AGREEMENT FOR CENTRAL AMERICA
Expects to Develop Significant Competitive Advantages as
First Major Electronic Cigarette Brand to Enter Central America
SPRING LAKE, MICHIGAN, November 12, 2013 – Victory Electronic Cigarettes Corporation (OTCQB:ECIG) (“Victory” or “the Company”), an emerging leader in the electronic cigarette industry, today announced that it has signed a comprehensive distribution agreement spanning Central America with Quipo S.A. de C.V. (“Quipo”). The agreement covers numerous countries in Central America, including El Salvador, Guatemala, Honduras, Nicaragua, Panama and Costa Rica. The Company expects the agreement to quickly become material to its results.
Brent Willis, Chairman and Chief Executive Officer of Victory, commented, “We are extremely excited for this new partnership. While we continue to make excellent progress in expanding our US retail distribution, we are pleased to have made this important step forward into the international marketplace. International represents nearly 90% of the $720 Billion global market for tobacco products, and a significant opportunity for Electronic Cigarettes. As the first major brand to be distributed in Central America, we expect to establish a powerful and enduring competitive position throughout the region.”
Quipo has excellent distribution reach and has already begun initial shipments of Victory’s distinctive brand and assortment of rechargeable and disposable electronic cigarettes in a targeted roll-out to approximately 1,500 retail locations throughout Central America, expanding to major channels including supermarkets, gas stations, pharmacies, bars and restaurants. Quipo will be utilizing Victory’s newly established Latin America Distribution Center to serve country-specific distribution partners in each territory. Quipo believes that they will ultimately reach into over 10,000 major points of sale and key retail accounts include Super Selectos, On the Run Convenience Stores, Farmacia San Nicolas, Farmacias Uno, Supermercados La Torre, Farmacias Meykos, Almacenes Siman, Wal-Mart, La Colonia, Super 99, Almacenes Machetazo, and others.
Victory Electronic Cigarettes is dedicated to providing a cleaner and healthier alternative to smoking for all and intends to empower smokers to regain their freedom. Victory is one of the leading companies in this rapidly emerging and fast-growing market. The Company began online sales in 2012 and expanded to retail early in 2013. Victory offers consumers a full product portfolio that incorporates the highest quality and latest technology, and has been rated as superior in real tobacco taste amongst major brands. Recently public, Victory’s experienced, new management team is positioned to leverage its clearly differentiated and well-recognized brand, established online presence, and low-cost infrastructure to accelerate growth and drive significant value for its shareholders.
Safe Harbor Language
This press release contains forward-looking statements reflecting management's current expectations regarding future results of operations, economic performance, financial condition and achievements of Victory, including statements regarding Victory’s expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue to materialize consistent with recent trends. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include: Victory’s reliance on additional financing, as Victory has not achieve profitability; risks associated with Victory’s products, including that they may pose a health risk; governmental regulations may impact Victory’s business; the market or consumers may not accept Victory’s products; Victory relies on a single class of products; existing or pending patents may affect Victory’s business; and other factors disclosed in the Company's filings with the Securities and Exchange Commission. Unless required by applicable law, Victory undertakes no obligation to update or revise any forward-looking statements.