Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
Page 37
Page 38
Page 39
Page 40
50TOBACCOOUTLETBUSINESSMARCHAPRIL2009Whatisyourviewofthegrowthpotentialofthecigarmarketatthispointodayx19smarketistricky.Witheveryoneeelingthepinchyouhavetowatchyourpricingmodel.Ieelthatsmokerswillnotquitsmokingbecauseotherecessionbutmaythinktwiceaboutwhattheysmoke.Ox1eringaqualityproductatacompetitivepriceiskey.Teoutletbusinessshoulddoverywellinarecessionaryworld.Peoplewhowouldnottypicallyshoporthebestpricehavetodojustthat.Ox1eringaproductthatcancompeteinthisavenueisoneoHeavenlyCigarCo.x19sgoalsor2009.WhatcanmerchantsdotoincreasecigarsalesDisplayiseverythingwhenyouaretryingtostandamongavastnumberocompetitors.Ourbrandingisalargepartooursuccess.Wehaveoundthateventshelptoinvitenewcustomersintothemerchantx19sstore.Participatinginuneventscreatesasenseoamilyinthatcommunity.Nowisatimetorejoincommunitiesandopenyoureyestotheneedsoothers.Merchantsshouldconsidergivingbacktothecommunitybysupportingalocalcharityorlocalneighborhood.Giv-ingandcaringcomerightbacktoyou.HowdoyouworkwithretailerstohelpthemmarketcigarsPartoourapproachtochangeandacknowledgingtheeconomicsituationothedayhasincludedimprovingourcustomerrelationshipprograms.Ourcustomershavemorechallengestodayandwewanttobethereorthemtoworkthroughitasateam.Weareimplementingcustomerloyaltyprogramsthatwillbeneftourretailersx19bottomlines.Wewillbeimplementingasalestierapproachsothatcustomerswillreceivediscountsbasedonan-nualbuyingaswellasaligningourscheduletosupportcooperativemarketingex1orts.OurAngelEventshaveprovedhighlyex1ectiveinincreasingsalesorretailersandtheseeventswillbeworkedintothestructure.Itisawin-winscenario.WhatnewproductsorpackaginghaveyouintroducedrecentlyOurtinshaveprovedtobeapopularpackagingoptionbecausesmokersfndtheEuropean-styleclamshelltinso-erconvenienceandprotectionwhencarryingtheselittlecigars.Te3.5-inch-by-26Cherubsfrstappearedin2002andtheselectionsquicklygrewtoincludefveothecompanyx19smostasked-orx2avorsHeavenlyVanillaCu-pidx19sCherryCreamCelestialCognacHeatherx19sHoneyNutandRagingRum.WerecentlyaddedCherubinsintheremainingnineHeavenlyx2avorsAphroditex19sAmarettoOrangeDreamsicleGrapeGoddessAngelx19sSpiceCinnamonMidnightMochaCrmeStrawberryBananaBlissChocolateTunderMojitoMadnessandMango-Licious.WhatdoyouseeasthebiggestchallengesaheadforyourcompanyandtheindustryasawholeEvenitheeconomymakesa180-degreeturntherewillstillbetheex1ectsothemonthsopanictopayor.Wearecertainlyeelingitaswellandweareworkingdiligentlytostreamlineprocessesinordertoreduceover-headcosts.Ieelthatnowisthetimeorrex2ectionandstrategy.Itisnearlyimpossibletoreevaluateprocessesanddirectionwhenyouareinthemiddleoaboom.Socompaniesshouldusethiscrisismodeasanopportunitytomakechangesandtobetterorganizetheircourse.HeatheronHeavenly