E-cigarette maker extends European distribution
A growing e-cigarette maker is expanding in Croatia and southeast Europe to deepen its reach on the continent.
Electronic Cigarette International Group in Grand Rapids, or ECIG, said this week that it has signed a memorandum of understanding with TDR, which is part of the Adris group, a holding company with annual revenue of $1 billion.
The MOU, which includes a 60 percent market share in Croatia, defines the terms for exclusive distribution of ECIG’s brands across TDR’s territories, with a definitive agreement and product launch expected in the first quarter of 2015.
“TDR is a great strategic partner with an outstanding leadership team,” said Brent Willis, chairman and CEO, ECIG. “We are extremely impressed by their tremendous success and experience in the tobacco industry throughout southeast Europe and other markets. We are very excited about building the electronic cigarette business with them in a very attractive and high-growth region.”
ECIG owns the trademarks VAPESTICK, FIN, Victory, GreenStix, VIP and others.
The company owns multiple subsidiaries and has operations in North America and western Europe.
"Very significant business"
“We are very excited about our partnership with ECIG,” said Mato Zadro, CEO, TDR. “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.”
Zadro said TDR is “convinced that electronic cigarettes will be a very significant business.”
He believes the agreement will provide both companies with the significant benefit of being able to leverage their combined product and distribution strengths.
TDR markets its leading brands of Ronhill, Walter Wolf and York across Europe and the Middle East.
TDR consists of five companies: Hrvatski Duhani, a buyer, packer and dealer of Virginia and Burley tobacco in Croatia; iNovine, a network of more than 590 retail stores in Croatia and Bosnia and Herzegovina; Istragrafika, a producer and exporter of commercial packaging in Croatia; and Adista, TDR’s tobacco distribution companies in Croatia and Bosnia and Herzegovina.
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.