About Vector Group

Vector Group Ltd. (Vector), through its subsidiaries, engages in the manufacture and sale of cigarettes in the U.S. The company’s subsidiaries are Liggett Group LLC (‘Liggett’), Vector Tobacco LLC (‘Vector Tobacco’), Liggett Vector Brands LLC (‘Liggett Vector Brands’), and New Valley LLC (‘New Valley’). Segments The company operates through two business segments: Tobacco and Real Estate. Tobacco This segment engages in the manufacture and sale of discount cigarettes in the United States through the company’s Liggett Group LLC and Vector Tobacco LLC subsidiaries, Real Estate This segment engages in the real estate investment business through the company’s subsidiary, New Valley LLC, which acquires and invests in real estate properties or projects. Strategy The company’s strategy is to maximize stockholder value by increasing the profitability of the company’s subsidiaries in the following ways: Liggett and Vector Tobacco Continue to offer excellent value propositions in the U.S. cigarette industry by consistently delivering high-quality products within the discount segment; Focus marketing and selling efforts on the discount segment, continue to build volume and margin in focus discount brands (Montego, Eagle 20’s, and Pyramid) and utilize core brand equity to selectively build distribution; Selectively expand the portfolio of partner brands and private label brands; and Identify, develop and launch relevant new tobacco products to the market in the future. New Valley Continue to leverage the company’s expertise as direct investors by actively pursuing real estate investments; and Invest the company’s excess funds opportunistically in real estate situations that can maximize stockholder value. Tobacco segment The company’s Tobacco segment operates through its two discount cigarette manufacture subsidiaries, Liggett and Vector Tobacco. For the year ended December 31, 2023, Liggett was the fourth-largest manufacturer of cigarettes in the U.S. in terms of unit sales. Liggett’s manufacturing facilities are in Mebane, North Carolina, where it also manufactures most of Vector Tobacco’s cigarettes pursuant to a contract manufacturing agreement. At present, Liggett and Vector Tobacco have no international operations. Liggett produces cigarettes in approximately 100 combinations of length, style and packaging. Liggett’s brand portfolio includes: Montego — From August 2020 to February 2022, Liggett expanded the distribution of its Montego deep discount brand from select target markets in four states to nationwide. Montego became Liggett’s largest brand by volume during the second quarter of 2022. Eagle 20’s — A brand positioned in the discount segment for long-term growth re-launched as a national brand in 2013. Eagle 20’s is Liggett’s second largest brand. Pyramid — A brand re-launched in 2009 as a deep discount product. Pyramid is Liggett’s third-largest brand. Grand Prix, Liggett Select, Eve, USA and various partner brands and private label brands. Sales, Marketing and Distribution Liggett’s products are distributed from a central distribution center in Mebane, North Carolina to public warehouses located throughout the U.S. by third-party trucking companies. These warehouses serve as local distribution centers for Liggett’s customers. Liggett’s customers are primarily wholesalers and distributors of tobacco and convenience products, as well as large variety, grocery, convenience and drug store chains. Trademarks All major trademarks used by Liggett are federally registered or are in the process of being registered in the U.S. and other markets. Trademark registrations typically have a duration of ten years and can be renewed at Liggett’s option prior to their expiration date. Competition Liggett’s competition consists of the three largest manufacturers of cigarettes in the U.S.: Philip Morris USA Inc., which is owned by Altria Group, Inc.; RJ Reynolds Tobacco Company, which is owned by British American Tobacco Plc; and ITG Brands LLC, which is owned by Imperial Brands Plc. New Valley segment New Valley is the company’s real estate investment business. The company has invested in numerous real estate projects in different asset classes, including planned communities, condominium and mixed–use developments, apartment buildings, hotels and commercial properties. Real Estate Investments In the company’s real estate investment business, the company seeks to acquire investment interests in domestic and international real estate projects through debt and equity investments. The company’s real estate investments include the following categories of projects (as of December 31, 2023): Condominium and Mixed-Use Development As of December 31, 2023, the company owned investments in condominium and mixed-use development real estate ventures located throughout the U.S. and presently in New York City, Florida, Tennessee, North Carolina, and California. The company had condominium and mixed-use development real estate ventures with projected construction completion dates between March 2024 and December 2025 as of December 31, 2023. Apartment Buildings As of December 31, 2023, the company owned investments in apartment building ventures located in Hoover, Alabama and in Santa Monica, California. The investments were operating as of December 31, 2023. Hotels As of December 31, 2023, the company owned investments in hotels located in New York City and in Bermuda. The hotels were operating as of December 31, 2023. Commercial As of December 31, 2023, the company owned investments in commercial real estate ventures located in New York City and in Las Vegas, Nevada. Both commercial real estate ventures were operating as of December 31, 2023. History Vector Group Ltd., formerly known as Brooke Group Ltd., was founded in 1873.