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| 8-K - CURRENT REPORT - Electronic Cigarettes International Group, Ltd. | ecig_8k.htm |
VICTORY ELECTRONIC
CIGARETTES
EMPOWERING PEOPLE
TO REGAIN THEIR FREEDOM
TO REGAIN THEIR FREEDOM
FORWARD LOOKING STATEMENTS/SAFE HARBOR
This presentation contains forward-looking statements. Forward-looking statements are
statements that relate to future events or future financial performance and include statements
regarding the future size of the market for electronic cigarettes, the future health benefits of
electronic cigarettes, future generations of Victory’s products, and Victory is well positioned to
capture the opportunity. These statements speak only as of the date of this presentation. These
risks include but are not limited to: our ability to obtain any necessary financing on acceptable
terms, the timing and amount of capital expenditures, timely receipt of regulatory and exchange
approvals, our management team’s ability to implement its business plan, the consumer’s willing to
switch to electronic cigarettes, the effects of government regulation, and general economic and
financial market conditions. These risks, as well as other risks or events that we cannot currently
anticipate, could cause Victory’s or its industry’s actual results, levels of activity or performance to
be materially different from any future results, levels of activity or performance expressed or
implied by these forward-looking statements.
statements that relate to future events or future financial performance and include statements
regarding the future size of the market for electronic cigarettes, the future health benefits of
electronic cigarettes, future generations of Victory’s products, and Victory is well positioned to
capture the opportunity. These statements speak only as of the date of this presentation. These
risks include but are not limited to: our ability to obtain any necessary financing on acceptable
terms, the timing and amount of capital expenditures, timely receipt of regulatory and exchange
approvals, our management team’s ability to implement its business plan, the consumer’s willing to
switch to electronic cigarettes, the effects of government regulation, and general economic and
financial market conditions. These risks, as well as other risks or events that we cannot currently
anticipate, could cause Victory’s or its industry’s actual results, levels of activity or performance to
be materially different from any future results, levels of activity or performance expressed or
implied by these forward-looking statements.
Although Victory believes that the expectations reflected in the forward-looking statements are
reasonable, it cannot guarantee future results, levels of activity or performance. Except as required
by applicable law, including applicable securities laws, Victory undertakes no obligation to update
any forward-looking statements.
reasonable, it cannot guarantee future results, levels of activity or performance. Except as required
by applicable law, including applicable securities laws, Victory undertakes no obligation to update
any forward-looking statements.
Investors should read the risk factors disclosure in our annual report on Form 10-K, our quarterly
reports on Form 10-Q, and other periodic reports filed from time-to-time with the Securities and
Exchange Commission at www.sec.gov.
reports on Form 10-Q, and other periodic reports filed from time-to-time with the Securities and
Exchange Commission at www.sec.gov.
2
THE OPPORTUNITY
Introduced in 2009, first truly new CPG category in over a decade
A clearly healthier alternative to tobacco cigarettes
Over 90% of smokers have yet to experience the product
At inception, segment predicted to exceed $300 billion in 10 years1
Worldwide retail expansion opportunity, highly attractive for retailers
Rapid development of next generation products imminent
Victory (ECIG:OTC) is one of only two public pure-play investment
3
Source: 1 Bonnie Herzog, Wells Fargo
VICTORY AT A GLANCE
1. Top 5 brand in national awareness
2. Preferred product on “real tobacco” taste attribute
3. Excellent brand imagery and support - especially at POS
4. Highest landed margins for retailers
5. Exclusive partnership with 2nd largest broker/distributor in US
6. Leading internet presence
7. Excellent/efficient production, quality and supply chain
systems
systems
8. Strong pipeline of intellectual property
9. Seasoned CPG leadership team
10. Public company traded under the symbol ECIG on the OTC
4
VICTORY PORTFOLIO
Micro-Kit
Rechargeables
Flavored
Refill
Cartridges
Disposables
Victory. Empowering People. Regaining Freedom. Victory…for life.
VICTORY POSITIONING
|
Target
|
For all smokers
|
|
Insight
|
Looking for a healthier and more flexible alternative
|
|
Brand
|
Victory is the brand
|
|
Category
|
of Electronic Cigarettes
|
|
Benefit
|
That empowers smokers
|
|
Reason Why
|
Because it has the most real tobacco taste… with no compromises
|
Attractive category - $720 billion global runway
Global opportunity, untapped in most markets & with most consumers
Highly fragmented competition creates opportunity
Victory is well positioned to capture share of the opportunity
A distinctive, well-recognized brand
A full product portfolio and strong IP pipeline
Leading online distribution, now expanding into retail
Capable, low-cost infrastructure supports strong margins
Motivated, experienced, and disciplined executive management team
Opportunity to be influenced by regulatory unknowns
KEY INVESTMENT CONSIDERATION
7
Source: 1 MarketLine, Euromonitor 2012
The Category
CATEGORY AT INCEPTION
Traditional Cigarettes smoked by over 1.3 Billion people, $720 Billion
60 Million smokers in US, $91 Billion Category
Over 30% of smokers claim they are trying to quit every year
>6 million people die each year from tobacco related diseases
Regulatory environment unknown, worldwide
Source: Industry Reports, Competitive reports, TVECA
9
Global ECIG Segment now exceeds $1Billion, doubling every year
Source of volume 99% from existing smokers . . . “trying to quit”
Trail at inception with <10% “ever try”
Recent studies show Ecigs to be the most effective cessation device
- Up to 20% quitting completely
- >50% reducing cigarette consumption
REGULATORY ENVIRONMENT UNKNOWN
26 US states smoking ban
US smoke-free - by 20201
TVECA Ecig industry association highly active
US FDA regulations in progress/discuss for 2+years
- Potential online commerce restrictions
- Potential flavor restrictions
- Potential age restrictions
- Potential communication restrictions
- Potential safety/health certifications
Other countries evaluating regulatory stance
Source: 1 Reuters April 21, 2011
10
DRIVEN BY MICRO-TECHNOLOGY, GEN 2
nicotine cartridge
atomization chamber
lithuim battery
4 ingredients vs. the more than 4,000 chemicals in Cigarettes
Mirrors ingrained smoking behavior, experience
Full potential to be realized when Gen 3 & 4 arrive
11
THE INDUSTRY BUZZ
Source: Linarch Reports and Citi Research
13
CITI: These 10 Technologies Are
Completely Changing The World
Completely Changing The World
Disruption 1: 3D Printing
Disruption 2: E-Cigarettes
Disruption 3: Genomics
THE INDUSTRY BUZZ
Judy Hong
Goldman Sachs
Equity Research Analyst
Michael Siegel MD
Professor, Boston University
Bonnie Herzog
Wells Fargo
Managing Director
Beverage, Tobacco, Consumer
Carly Weeks
The Globe and Mail
Equity Research Analyst
Ann McNeill
Professor, King’s College London
Institute of Psychiatry
“…electronic cigarettes may not only be here to stay, but could surpass
traditional cigarettes to become a leading tobacco product…” “The long
-term growth trajectory of the category will be robust.”
traditional cigarettes to become a leading tobacco product…” “The long
-term growth trajectory of the category will be robust.”
"Imagine a product that is possibly >99% less harmful than cigarettes,
delivers a similar user experience and offers a better economic
bargain—this is the proposition of electronic cigarettes (e-cigs).” “Hong
estimates they could hit $10bn in sales over the next several years…”
delivers a similar user experience and offers a better economic
bargain—this is the proposition of electronic cigarettes (e-cigs).” “Hong
estimates they could hit $10bn in sales over the next several years…”
“…health organizations once viewed e-cigarettes…as a threat. But as
more evidence emerges of their potential role in helping people wean
themselves off cigarettes, those attitudes are rapidly shifting.”
more evidence emerges of their potential role in helping people wean
themselves off cigarettes, those attitudes are rapidly shifting.”
“E-cigarettes “could literally save thousands of lives.”
“…57 per cent of people using e-cigarettes cut their daily number of
cigarettes smoked by at least half after six months… the findings should
persuade health experts to embrace e-cigarettes as a useful weapon in
the battle against smoking. “
cigarettes smoked by at least half after six months… the findings should
persuade health experts to embrace e-cigarettes as a useful weapon in
the battle against smoking. “
14
The Competition & The Company
Source: Industry Reports, Competitive reports, TVECA
High
High
Low
Low
Online Penetration
COMPETITIVE LANDSCAPE
16
BLU SOLD AT 4 TIMES REVENUE IN <4 YEARS
• Online to retail in 2 years
• Secured one major account
• $0 to $40MM in less than 4 years
• $0 to 4x revenue acquisition @ $135MM
Becomes
leading
brand online
Improves
quality, and
supply chain
supply chain
Launches
at retail
Secures
major
distribution
Sales and
demand
increase
Expands
retail
distribution
is
here
Strong online business
Solid retail distribution partners
Accelerating revenue stream
Major opportunity for shareholder value
VICTORY EVOLUTION SHOWS STRIKING
SIMILARITIES TO BLU
SIMILARITIES TO BLU
Begins
Operations
Begins
Internet Sales
In 2012
VICTORY COMPARES FAVORABLY AMONGST
COMPETITION
COMPETITION
• Victory ranks well in brand awareness
• Brand Preference currently driven by availability…
• Victory awareness driven by Online strategy
• Victory leads in real tobacco taste preference
FIGURE 4.1 VICTORY AWARENESS
FIGURE 3.1 UNAIDED BRAND AWARENESS
FIGURE 8.1 RATIONALE FOR TASTE PREFERENCE
Source: Electronic Cigarette Central Location Test 2012
1) Top 5 brand in national awareness
2) Preferred product on “real tobacco” taste attribute
3) Excellent brand imagery and support - especially at POS
4) Highest landed margins for retailers
5) Exclusive partnership with 2nd largest broker distributor in US
6) Leading internet presence
7) Excellent/efficient production, quality and supply chain systems
8) Strong pipeline of intellectual property
9) Seasoned CPG leadership team
10) Public company traded under ECIG on the OTC
SCALABLE INFRASTRUCTURE
Dedicated, High Quality Manufacturing Partners
Internal Fulfillment Center/QC Operations
Integrated/Automated ERP systems
Dedicated Customer Service
Integrated Sales Network
BRAND IMAGERY AND SUPPORT
Recent national & regional account distribution > 2,500 stores
Recent major distributor authorization -> 21 warehouses
Recent exclusive international distribution -> 2 countries
Differentiated Packaging
Past
30
Days
Category captain in major retailers
Outselling competitors 2-1 in co-distributed locations
BRAND IMAGERY AND SUPPORT
Customizable
In-shelf Racks
Stand-alone
Countertop
Displays
Couponing & Tie-ins
Experiential
Marketing
THE CUSTOMER AND CONSUMER BUZZ
Buyer
Major Convenience Store Chain
45 year-old Female Consumer
Atlanta, Georgia
SVP
Major East Coast Retail Chain
Category Manager
Major Southwest Retail Chain
27 year-old Male Consumer
Federal Way, Washington
(To a major tobacco company) “We are very happy with our partnership
with Victory and quite happy staying exclusive with them.
with Victory and quite happy staying exclusive with them.
”Yes, your packaging is the appropriate pack-rack size, and unlike anyone
else in the category, Victory’s offering is clear and pops vs. others”
else in the category, Victory’s offering is clear and pops vs. others”
“Your racks doubled our facings from 9 to 18 in the same space. You were
the most responsive. That’s why you were awarded Category Captain”
the most responsive. That’s why you were awarded Category Captain”
“I can now walk up and down the steps without loosing my breath. I can
taste food again, and my kids tell me I don’t stink anymore. Thank you.”
taste food again, and my kids tell me I don’t stink anymore. Thank you.”
“Thank you so much Brent. I tried Victory e-cig on a whim, thinking
"anything is better than the cancer sticks". I am very pleasantly surprised.
I have not touched a regular cigarette since my first Victory. I have
subsequently tried a few other brands. Without a doubt your product is
superior. I particularly enjoy your coffee flavor. So far I feel MUCH better.”
"anything is better than the cancer sticks". I am very pleasantly surprised.
I have not touched a regular cigarette since my first Victory. I have
subsequently tried a few other brands. Without a doubt your product is
superior. I particularly enjoy your coffee flavor. So far I feel MUCH better.”
“Mr. Willis, Thank You for writing me. The Victory e-cigarette is doing
wonders for me... I smoke at least half as much tobacco cigarettes than I
used to.... I have a plan in place to completely smoking real cigarettes...”
wonders for me... I smoke at least half as much tobacco cigarettes than I
used to.... I have a plan in place to completely smoking real cigarettes...”
35 year-old Male Consumer
Boerne, Texas
PIPELINE OF INTELLECTUAL PROPERTY
Generation 1
Current Product
Generation 2
Current Product
Generation 2A
Soft-Tip
Battery components
Indicator light
Liquid container
Atomizing Device
Next Generation
Evolution of Taste, Feel, Weight
Evolution of Function, Performance
Revolution of Construction
Revolution of Components
THE INDUSTRY BUZZ
26
(In USD Billions)
2010 2011 2012 2013
10% of
Growth
Estimate
High Return
on Investment
on Investment
High Return
on Investment
on Investment
Window
Window
Technical/
Performance
Change
Source: Linarch Reports and Citi Research
Attractive category - $720 billion global runway
Global opportunity, untapped in most markets & with most consumers
Highly fragmented competition creates opportunity
Victory is well positioned to capture share of the opportunity
A distinctive, well-recognized brand
A full product portfolio and strong IP pipeline
Leading online distribution, now expanding into retail
Capable, low-cost infrastructure supports strong margins
Motivated, experienced, and disciplined executive management team
KEY INVESTMENT CONSIDERATION
27
Source: 1 MarketLine, Euromonitor 2012
Company Data & Select Management
Biographies
Biographies
MARKET DATA
|
Company Name
|
Victory Electronic Cigarettes Corp.
|
|
Exchange/Symbol
|
OTCBB/ECIG
|
|
Shares Issued and Outstanding
|
53,344,000
|
|
SIC
|
2111
|
|
CUSIP#
|
92644K104
|
|
Fiscal Year End
|
December 31
|
|
Date of Incorporation
|
May 19, 2004
|
|
Incorporated
|
Nevada
|
|
Industry
|
Cigarettes
|
|
Transfer Agent
|
Nevada Agency and Trust Company
|
|
Corporate Attorneys
|
Clark Wilson LLP
|
|
Auditors
|
Accell Audit & Compliance, P.A.
|
29
BRENT DAVID WILLIS - CHAIRMAN & CEO
Brent Willis is the Chairman and Chief Executive Officer of Victory E-Cigarettes. Prior to Victory, Mr. Willis
operated as the Chairman and Chief Executive Officer of a portfolio of companies including Liberty
Ammunition, a leading lead-free ammunition company, Throwdown Industries, a leading mixed martial
arts company, and a start up medical device company. Mr. Willis continues to own a significant equity
stake in each of these firms.
operated as the Chairman and Chief Executive Officer of a portfolio of companies including Liberty
Ammunition, a leading lead-free ammunition company, Throwdown Industries, a leading mixed martial
arts company, and a start up medical device company. Mr. Willis continues to own a significant equity
stake in each of these firms.
Prior to running private equity based firms, Brent served as the CEO for Cott Corporation (NYSE; COT), the
world’s largest retailer brand beverage company and was also the Global CCO, President, and on the
Board of Management for InBev and Board of Directors for AmBev (NYSE: BUD, ABV). At InBev, he
developed and implemented the strategy, the top-line growth initiatives and the acquisitions that led the
Company to share price appreciation of more than 400% and transformation into the world’s largest beer
company.
world’s largest retailer brand beverage company and was also the Global CCO, President, and on the
Board of Management for InBev and Board of Directors for AmBev (NYSE: BUD, ABV). At InBev, he
developed and implemented the strategy, the top-line growth initiatives and the acquisitions that led the
Company to share price appreciation of more than 400% and transformation into the world’s largest beer
company.
From 1996 through 2001, Brent served as a President in Latin America for The Coca-Cola Company where
led his Division to the #2 ranking worldwide of all Coca-Cola Company operating units and led the largest
turnaround in Company history. From 1987 through 1996, Brent worked for Kraft Foods, Inc., where he
managed a number of Kraft’s brands, developed Category Management in the US, led numerous
acquisitions and joint ventures in Japan, Korea, Indonesia and others, and launched the Kraft Brand in
China. Brent began his career in the US Army and served with distinction in elite Combat Arms units.
led his Division to the #2 ranking worldwide of all Coca-Cola Company operating units and led the largest
turnaround in Company history. From 1987 through 1996, Brent worked for Kraft Foods, Inc., where he
managed a number of Kraft’s brands, developed Category Management in the US, led numerous
acquisitions and joint ventures in Japan, Korea, Indonesia and others, and launched the Kraft Brand in
China. Brent began his career in the US Army and served with distinction in elite Combat Arms units.
Brent holds a Bachelors of Science in Engineering from the United States Military Academy at West Point
and a Masters in Business Administration from the University of Chicago.
and a Masters in Business Administration from the University of Chicago.
30
MARC HARDGROVE - PRESIDENT, ONLINE DIVISION
Marc Hardgrove is the Co-founder of Victory Electronic Cigarettes, and operates as the President of the
Online Division for the Company. He is a highly successful entrepreneur with ownership of several
companies and depth of expertise in Internet commerce.
Online Division for the Company. He is a highly successful entrepreneur with ownership of several
companies and depth of expertise in Internet commerce.
Mr. Hardgrove co-founded Jumpline.com web hosting in 1997 and served as President for nine years.
Under Marc’s leadership, Jumpline.com grew from a start-up to be one of the largest web hosting
companies in the United States. Jumpline.com has customers in 97 countries and hosts over 150,000
websites around the world. Mr. Hardgrove is a major equity holder of Jumpline.com and currently sits on
the Board of Directors for the firm.
In 2006 Mr. Hardgrove Co-Founded a web2.0 business called Next Net Media. Next Net Media is one of
the premier search engine optimization firms in the US, that manages over 5,000 small business’s organic
search results. Mr. Hardgrove sits on the Next Net Media Board of Directors and continues to own a
significant equity stake in the firm.
the premier search engine optimization firms in the US, that manages over 5,000 small business’s organic
search results. Mr. Hardgrove sits on the Next Net Media Board of Directors and continues to own a
significant equity stake in the firm.
Mr. Hardgrove is a graduate of The Ohio State University with a double major in Business Marketing and
Finance.
Finance.
31
JOHN PERNER - PRESIDENT, RETAIL DIVISION
John Perner is the President of the Retail Division for Victory E-Cigarettes. Prior to Victory, Mr. Perner
was the Chief Customer Officer of Chateau Sales, and led the efforts to secure new distribution with
Costco, Target, Home Depot, Safeway, and Publix for the Company.
was the Chief Customer Officer of Chateau Sales, and led the efforts to secure new distribution with
Costco, Target, Home Depot, Safeway, and Publix for the Company.
From 1993 through 2010 Mr. Perner was with the Pepsi- Cola Company. He was one of the leading sales
persons in the Company and was awarded PepsiCo’s “Accelerating Growth Award” in 2005, the
“Presidents Ring of Honor” in 2000, and Pepsi’s “Right Side Up” award in 1995. Prior to PepsiCo from
1988 through 1993, John was a Sales Representative with the Duracell Battery Company and received
multiple awards for Sales Excellence.
persons in the Company and was awarded PepsiCo’s “Accelerating Growth Award” in 2005, the
“Presidents Ring of Honor” in 2000, and Pepsi’s “Right Side Up” award in 1995. Prior to PepsiCo from
1988 through 1993, John was a Sales Representative with the Duracell Battery Company and received
multiple awards for Sales Excellence.
In addition to sales, Mr. Perner also has many years of business management experience in the golf
industry. He has served on the boards of the Nationwide Senior Championship, Palm Springs Celebrity
Golf Classic, and the Sarazen World Open Championship. Additionally, Mr. Perner was part of the official
U.S. delegation for the 1993 U.S. Ryder Cup Team, and the 1997 U.S. Ryder Cup Team. He also has
written for Atlanta Golf Magazine.
industry. He has served on the boards of the Nationwide Senior Championship, Palm Springs Celebrity
Golf Classic, and the Sarazen World Open Championship. Additionally, Mr. Perner was part of the official
U.S. delegation for the 1993 U.S. Ryder Cup Team, and the 1997 U.S. Ryder Cup Team. He also has
written for Atlanta Golf Magazine.
John has also served as Chairman of the Board of Directors for Oglethorpe University Museum of Art, and
currently serves on the Board of the Variety Club of Georgia. He earned a Wrestling Scholarship to the
University of Georgia, and graduated with an A.B. degree in 1984.
currently serves on the Board of the Variety Club of Georgia. He earned a Wrestling Scholarship to the
University of Georgia, and graduated with an A.B. degree in 1984.
32
PAUL DILLMAN - PRESIDENT, INTERNATIONAL DIVISION
Paul Dillman is the President of International for Victory Electronic Cigarettes. He is a seasoned general
manager with over 20 years of global multi-national company experience across the US, Europe and Asia. He
brings broad experience in general management, marketing, innovation, organization building, sales and
distribution with world class Companies including Phillip Morris, Kraft Foods, InBev, and Coca-Cola.
manager with over 20 years of global multi-national company experience across the US, Europe and Asia. He
brings broad experience in general management, marketing, innovation, organization building, sales and
distribution with world class Companies including Phillip Morris, Kraft Foods, InBev, and Coca-Cola.
Prior to joining Victory, Paul was an independent consultant who mentored and led initiatives for multiple
start-up firms and was the Chief Marketing Officer for DTI Software. From 2006 through 2008, Mr. Dillman
was the Deputy Group Marketing Director Asia Pacific for The Coca-Cola Company. From 2004 through
2006, Paul was with InBev, leading global marketing for multiple brands and was one of the key contributors
to building the world’s largest beer company, including expanding the Beck’s brand in key markets around
the world, and leading all Sales and Marketing initiatives for Russia, Ukraine and Central & Eastern Europe.
start-up firms and was the Chief Marketing Officer for DTI Software. From 2006 through 2008, Mr. Dillman
was the Deputy Group Marketing Director Asia Pacific for The Coca-Cola Company. From 2004 through
2006, Paul was with InBev, leading global marketing for multiple brands and was one of the key contributors
to building the world’s largest beer company, including expanding the Beck’s brand in key markets around
the world, and leading all Sales and Marketing initiatives for Russia, Ukraine and Central & Eastern Europe.
Prior to InBev, from 1997 - 2004 Paul was the Area Director for Phillip Morris in Southeast Asia, and was
General Manager for Philip Morris Singapore and President & General Manager for Kraft Foods in Korea.
Mr. Dillman joined Kraft Foods in 1986 in Marketing and held successive leadership positions in numerous
Divisions throughout the Company. He began his career in the US Army and served with distinction in the
US Army Corps of Engineers culminating with a successful Company Command.
General Manager for Philip Morris Singapore and President & General Manager for Kraft Foods in Korea.
Mr. Dillman joined Kraft Foods in 1986 in Marketing and held successive leadership positions in numerous
Divisions throughout the Company. He began his career in the US Army and served with distinction in the
US Army Corps of Engineers culminating with a successful Company Command.
Mr. Dillman is a graduate of the US Military Academy at West Point in Nuclear Engineering and earned a
Masters in Systems Management from the University of Southern California.
Masters in Systems Management from the University of Southern California.
33
STEVE RIFFLE - PRESIDENT, INDEPENDENT DIVISION
Steve Riffle is the President of the Online Division of Victory Electronic Cigarettes, and has worked with the
Company since inception. In his tenure with the firm, Mr. Riffle has grown the independent retail business
to over 1,000 customers across the United States, and developed the online Membership model, that is
one of the leading membership programs in the the Industry with a database of over 100,000 customers.
Company since inception. In his tenure with the firm, Mr. Riffle has grown the independent retail business
to over 1,000 customers across the United States, and developed the online Membership model, that is
one of the leading membership programs in the the Industry with a database of over 100,000 customers.
Prior to Victory, Mr. Riffle spent over 20 years in the fitness and event merchandising industries. From
2006 through 2010, Steve led all the sales and event merchandising efforts for Squeeze Productions,
generating greater than $20 million in annual sales. In 2004, Steve founded Fitness Unlimited, a chain of
Fitness centers in Southern California that he then sold to 24 Hour Fitness.
2006 through 2010, Steve led all the sales and event merchandising efforts for Squeeze Productions,
generating greater than $20 million in annual sales. In 2004, Steve founded Fitness Unlimited, a chain of
Fitness centers in Southern California that he then sold to 24 Hour Fitness.
From 1996 through 2005 he was the General Manager of LA Fitness where he transformed the business
from loss making to generating over $1MM in annual income. From 1986 through 2005 Mr. Riffle was the
Area Supervisor of Nautilus Plus Fitness Centers, one the leading fitness chain at the time, based in
Newport Beach, California.
from loss making to generating over $1MM in annual income. From 1986 through 2005 Mr. Riffle was the
Area Supervisor of Nautilus Plus Fitness Centers, one the leading fitness chain at the time, based in
Newport Beach, California.
34
ROBERT HARTFORD - CHIEF FINANCIAL OFFICER
Bob has over 30 years of experience in Financial Management to his role as CFO for Victory Electronic
Cigarettes. For the past 10 years Mr. Hartford has acted as CEO, CFO, and COO for private and public
companies. Prior to assuming his role for Victory Electronic Cigarettes, Mr. Hartford operated as the Chief
Financial Officer and Board Member from 2008 - 2012 for Orthopedic Designs North America Inc, an
orthopedic trauma medical device company.
Cigarettes. For the past 10 years Mr. Hartford has acted as CEO, CFO, and COO for private and public
companies. Prior to assuming his role for Victory Electronic Cigarettes, Mr. Hartford operated as the Chief
Financial Officer and Board Member from 2008 - 2012 for Orthopedic Designs North America Inc, an
orthopedic trauma medical device company.
From 1997 through 2007 Bob provided investment banking and CFO services to a portfolio of companies in
banking, medical software, electronics manufacturing, computer based training, franchising, and medical
technology industries. From 1995 to 1996, Bob served as Vice President of Eaglestone Capital, where he
was responsible for the acquisition of portfolio companies, and served on the Board of Directors of each
acquisition. From 1990 to 1994, Bob acted as President of Quantum Capital, where he was responsible for
raising seed capital for start-up firms and acted as an advisor for a healthcare company’s initial public
offering.
banking, medical software, electronics manufacturing, computer based training, franchising, and medical
technology industries. From 1995 to 1996, Bob served as Vice President of Eaglestone Capital, where he
was responsible for the acquisition of portfolio companies, and served on the Board of Directors of each
acquisition. From 1990 to 1994, Bob acted as President of Quantum Capital, where he was responsible for
raising seed capital for start-up firms and acted as an advisor for a healthcare company’s initial public
offering.
Following service in the US Army, Mr. Hartford began his finance career with Raymond James & Associates
and subsequently founded Investor Portfolio, Inc, a broker dealer specializing in Private Placement
transactions and Quantum Capital Inc. a private investment and consulting firm.
and subsequently founded Investor Portfolio, Inc, a broker dealer specializing in Private Placement
transactions and Quantum Capital Inc. a private investment and consulting firm.
Mr. Hartford is an Accounting graduate of the University of South Florida, and is a member of The
Association for Corporate Growth.
Association for Corporate Growth.
35
VICTORY ELECTRONIC
CIGARETTES
EMPOWERING PEOPLE
TO REGAIN THEIR FREEDOM
TO REGAIN THEIR FREEDOM