National Tobacco Forms Strategic Partnership With V2 Cigs

MIAMI -- National Tobacco Co. (NTC) joined with V2 Cigs to develop a new line of electronic cigarettes for the retail market, including the convenience channel. The new products are making their debut at the 2013 NATO Show in Las Vegas this week.

V2 Cigs is the flagship brand of Miami-based VMR Products LLC. Louisville, Ky.-based NTC is the distributor of Zig-Zag and Beech-Nut brands.

The new line features a redesigned V2 Cigs Disposable model that will be sold alongside V2's new rechargeable Express Kits and refill cartomizer products. Products will be showcased in a variety of multi-product display units designed to stand out on the counters of convenience stores and tobacco retailers.

"The new disposable electronic cigarette models in this line offer a major step forward in the consumer experience provided by its vapor and battery performance," said Dan Recio, president of business development at V2 Cigs. "Additionally, they feature a soft and pliable form factor to more closely mimic the traditional smoking experience."

The new partnership will bring the V2 Cigs line of electronic cigarette products to an expanded list of U.S. retailers. NTC will become the exclusive marketer and distributor of V2 Cigs products in domestic c-stores and other retail outlets.

"NTC products are currently sold in over 150,000 retail locations in the United States," said Graham Purdy, vice president of sales and trade marketing for NTC. "We are very excited to add the V2 Cigs brand to our product arsenal. The manufacturing and online marketing power of V2 Cigs complements NTC's extensive field sales organization and account management teams. This strategic partnership will allow retailers to tap into a significant portion of adult electronic cigarette consumers who can only find their brand today in the online environment. This represents a perfect synergy."

V2 Cigs will soon add a store locator to its website, www.v2cigs.com, and a downloadable mobile app to help existing V2 Cigs customers find their favorite products at local retail stores.

V2 Cigs products are already sold in a variety of national retailers, such as Hess gas stations and Pilot truck stops. However, NTC and V2 Cigs expect to expand distribution to approximately 30,000 additional retail locations this year alone.

V2 Cigs will support its retail expansion with a marketing program that includes TV and radio advertising; local promotional couponing; on-site demo teams and product demonstrations; free samples; ZIP-code targeted direct mailings; Sunday newspaper inserts and coupons; and web, mobile and event promotion.

V2 Cigs will also provide retailers with a wide array merchandising options, including small-footprint countertop displays.

"Over the past few years, traditional retail brands have been transitioning online. Today, we are seeing a new trend with the most successful online brands moving into retail," said Andries Verleur, CEO of V2 Cigs. "2013 was already on track to be our best year but post-NTC, it's likely we could exceed our own best projections by up to 30 percent."