CST Brands Inks Distribution Deal With Victory Electronic Cigarettes

Represents major expansion of e-cig maker's retail business

Victory Electronic Cigarettes Corp.

SAN ANTONIO -- CST Brands Inc. has entered into a comprehensive distribution agreement with Victory Electronic Cigarettes Corp. (ECIG).

Created as an independent spinoff from Valero Energy Corp. in May 2013, CST is the largest independent retailer of transportation fuels and convenience goods in North America, reaching thousands of customers every day across nearly 1,900 retail locations operating under the Corner Store and Valero brands.

The deal represents a major expansion of Spring Lake, Mich.-based Victory's U.S. retail business. The company began online sales in 2012 and began it retail expansion in March 2013.

Victory has now begun shipments in the initial rollout to CST's retail locations. Victory's distinctive brand and assortment of rechargeable and disposable electronic cigarettes will be prominently displayed in the Corner Stores, which Victory believes will reinforce its increasingly strong competitive position in the retail marketplace.

"We are very pleased to have secured such a strong, anchor partner for the development of our retail growth strategy," said Brent Willis, chairman and CFO of Victory. "CST Brands is a world-class retailer with an outstanding footprint and great growth potential. We are excited about this partnership and confident that Victory's distinctive brand identity and preferred 'real tobacco taste' will continue to resonate well with consumers."

CST Brands, San Antonio, operates throughout the southwestern United States and eastern Canada, offering an array of convenience merchandise, beverages, snacks and fresh food. In the United States, CST Corner Stores sell Valero fuels and signature products such as Fresh Choices baked and packaged goods, U Force energy and sport drinks, Cibolo Mountain coffee, FC Soda and Flavors2Go fountain drinks. In Canada, CST is the exclusive provider of Ultramar fuel and its Depanneur du Coin and Corner Stores sell signature Transit Cafe coffee and pastries.