Electronic Cigarettes International Group Signs Memorandum of Understanding with European Tobacco Leader TDR

Source from:  Business Wire 12/11/2014

Electronic Cigarettes International Group, Ltd. (ECIG), today announced that it has signed a memorandum of understanding with TDR, the leading independent tobacco company in South East Europe, including a 60% market share in Croatia. The memorandum of understanding defines the terms for exclusive distribution of ECIG's brands across TDR's territories, with a definitive agreement and product launch expected in thefirst quarter of 2015.

TDR, part of Adris group, a holding company with annual revenue of $1 billion, is one of the largest tobacco companies in South East Europe. TDR markets its leading brands of Ronhill®, Walter Wolf® and York® across Eastern, Central and Western Europe and the Middle East. TDR is a vertically integrated organization consisting of five companies including Hrvatski Duhani, the leading buyer, packer and dealer of Virginia and Burley tobacco in Croatia; iNovine, a network of over 590 retail stores in Croatia and Bosnia and Herzegovina; Istragrafika, the leading producer and exporter of commercial packaging in Croatia; and Adista, TDR's tobacco distribution companies in Croatia and Bosnia and Herzegovina. TDR also operates branch offices in Croatia, Bosnia and Herzegovina, Germany, Kosovo, Macedonia, Montenegro, Serbia, and Slovenia. Each company has a distinct role in the TDR's value chain, from tobacco growing and processing to production, distribution and retail support for tobacco products.

Mato Zadro, Chief Executive Officer of TDR, said, "We are very excited about our partnership with ECIG. We have the strongest tobacco business in the region, and partnering with the leader in the e-cig category will enable us to accelerate growth and provide our customers the leading products in this new market segment. We are convinced that electronic cigarettes will be a very significant business, and believe that both companies will benefit greatly by leveraging our combined product and distribution strengths."

Brent Willis, Chairman and Chief Executive Officer of ECIG stated, "TDR is a great strategic partner with an outstanding leadership team. We are extremely impressed by their tremendous success and experience in the tobacco industry throughout South East Europe and other markets. We are very excited about building the electronic cigarette business with them in a very attractive and high growth region." Enditem