SOURCE: VaporBrands International, Inc.

December 10, 2012 08:45 ET

VAPR Planning to Enter the Asian Market, Beginning in Macau

LOS ANGELES, CA--(Marketwire - Dec 10, 2012) - VaporBrands International, Inc. (PINKSHEETS: VAPR) ("VAPR") is planning to introduce Vapor Brand Domestic's ("VBD's") personal electronic vaporizing units ("PEVUs") into the Asian market initially targeting Macau. VAPR hopes to unseat the market dominance of combustible tobacco products in China's Special Administrative Region (SAR) of Macau. China is the world's largest producer and consumer of combustible tobacco products such as cigarettes. 

"We feel the now is the time to penetrate the Asian market with Macau as the logical entry point, in part due to its dominant Casino industry and upscale clientele. Macau is a manageably sized territory, with a population that totals just over half a million people and which reflects a demographic which we expect will serve as a litmus test for the greater Chinese market." 

Mr. Torres added, "We are very excited to bring PEVUs such as VBD's VAMP™ and Junkanoo™ brands of electronic cigarettes and electronic cigars to consumers in Macau. (See: http://www.vaporbrands.com/our-brands/co-brands/mid-market). Beyond that, we will be developing numerous other branding opportunities with local partners designed to reflect the distinct preferences of Asian consumers, region by region. This is a significant step for VAPR. If only 1% of the existing number of Asian tobacco consumers switched to using VAPR's branded PEVUs we estimate that VAPR would enjoy an annual gross revenue of approximately $1 Billion USD." 

Macau has implemented anti-smoking laws this year and it will also apply to the Casinos beginning in 2013, where only half of the casino space can be designated as smoking. VAPR believes that PEVUs will be an attractive alternative for adult consumers as well as to regulators in mainland China. 

After opening up its locally-controlled casino industry to foreign competition in 2001, Macau attracted tens of billions of dollars in foreign investment, becoming one of the world's largest gaming centers. Macau's gaming and tourism businesses were fueled by China's decision to relax travel restrictions on Chinese citizens wishing to visit Macau. By 2006, Macau's gaming revenue surpassed that of the Las Vegas strip. Macau, a city of 550,000, hosted nearly 25 million visitors in 2010 with 53% coming from mainland China and as such provides access to an interesting cross section of consumers from throughout Asia as well as the global marketplace.

Overall, the Asian tobacco market has been valued at $100+ billion USD a year with in excess of 790 million smokers representing 57% of the world's smoking population as stated by Mazar's Global Research at: http://www.mazars.ie/Home/News/Publications/Thought-Leadership/The-Global-Tobacco-Industry

Market Trends

The PEVU category continues to grow at exponential rates each month as sales which were formerly dedicated to the $661 billion tobacco category convert to each month. From January to July 2011, electronic cigarette revenue grew at an astounding rate of 1500% and unit sales grew 2000%. http://www.businessinsider.com/citi-tobacco-symposium-smoking-2010-2011-5?op=1

The current explosive growth and continued popularity of e-cigs and other PEVUs serves as a stark contrast to declining sales of cigarettes. While PEVU revenue grew exponentially in early 2011, Citi actually downgraded large cap tobacco stocks to "Hold" from "Buy" in January of 2011. Citing a steady downward trend in smoking [cigarettes and other tobacco products] over the past 50 years, Citi predicted this downward trend to continue, and claimed that smoking would "virtually disappear in 30-50 years." See: http://www.businessinsider.com/citi-downgrades-tobacco-stocks-2011-1#ixzz2CRlfhM8i

As consumer preferences, government regulations and cultural dynamics change, and as alternative products such as e-cigs continue to gain favor with consumers, it is very possible that the PEVU sector of the marketplace may grow to equal or perhaps even far exceed the $661 billion in sales that stake holders in the tobacco category currently enjoy.

About VaporBrands International, Inc. (VAPR)

VAPR focuses on creating opportunities for culturally relevant brands seeking to acquire significant market share in the rapidly growing "Vaping" sector of the global marketplace.

There are many brands of PEVUs currently in the marketplace mostly sold by small companies that have limited manufacturing and distribution capacities. The quality of these products varies considerably. VAPR is uniquely positioned through its industry expertise and strategic partnerships with American technology leaders such as Safecig™ (www.Safecig.com), to achieve commercial success in various markets across the globe, by providing consumers with state of the art, innovative products which are distinct from any competitor in the e-cig/PEVU sector of the marketplace.

Safe Harbor Statement

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including but not limited to statements containing the words "will," "believes," "plans," "anticipates," "expects," "look forward," "estimates" and similar expressions) should be considered to be forward-looking statements and the safe harbor provisions of said Act do not apply to an issuer that issues penny stock. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors including, among others, competition, market demand, technological change, strategic relationships, recent acquisitions, international operations and general economic conditions. We do not assume any obligation to update any forward-looking statements.

VBD is a privately held company that produces various brands of electronic cigarettes and electronic cigars including brands such as VAMP™ and Junkanoo™. See: http://www.vaporbrands.com/our-brands/co-brands/mid-market

Contact Information

  • For further information regarding VaporBrands International, Inc., contact:

    VaporBrands International, Inc.
    Investor Relations
    E-mail: investors@vaporbrands.com