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40TOBACCOOUTLETBUSINESSNOVEMBERDECEMBER2009iguredoutwithtobaccostillstand-ing.hereisstillatobaccoindustryinCanadaevenwhentheyputthingslikegovernmentregulationinplace.x1dInternatIonalPremIumCIgarPIPeretaIlersassoCIatIonIPCPrChrisMcCallaLegislativeDirectorTeIPCPRwasorganizedin1933astheadvocateortheindependentretailtobacconist.Itsmembersin-cludemorethan2000retailstoresthroughouttheworldsellingtobaccoproductsandacces-soriesaswellasmorethan350tobaccomanuacturersdistributorsandserviceproviders.Itactsastheconduittobringmanuacturersandretailerstogetherinmutuallyadvantageousbusinessrelationsitalsoprovidesinormationonresourcesmarketdataresearchservicesandprod-uctsthatwillhelpintheprox1tableopera-tionoretailtobaccobusinesses.x1cEspeciallyonthecigarsidewepro-videtalkingpointsortheindustryx14howtocombatcigartaxesspecix1callybutingeneralhowtheycanprotecttheirbusinessesandtalktolegislators.Wex19vebeendoingalotograssrootsefortsx14ittookthreeyearstoorganizethemintosubgroupsx14allstatesandallretailers.Morethananythingelsewegetretail-erstalkingtooneanotherandworkingtogether.Temoreaceswhoshowuporalegislativehearingthebetter.x1cIx1ndthistobeoneotheleastcom-petitiveindustriesinagoodway.Moresothananyotherindustrywex19reover-regulatedwithtaxesbansandmore.Temoreissuesweacethemorewelookorsupportandcomortromourpeers.Terex19ssaetyinnumbers.Everyoneshouldknowwex19reallinthistogether.x1cWex19vehadseveraldevastatingtaxincreasesbutwehavetoocusonhowmanydidnx19tgetpassed.Wedonx19twinallthex1ghtsbutwhenyoudogetthatwinyouhavetoeedofthatwinormonths.Wecandoitx14youcanx1ghtcityhall.x1cIyoux19ree-mailingcallingandaxinglegislatorsandthenyoualsosuddenlyshowupattheirdoortheyseeyouwonx19tletitgo.Itx19sgreatwhentheycanputaacetoyourname.Teyx19remorelikelytocallbackandsayx18Whatcanwedotox1xthisx19x1cFacebookandsocialnetworkingmediacouldworkorthisindustry.Ocoursealotosmokersstilldonx19tusee-mail.Buttheyoungsmokingcustomerswouldrespond.OcoursemanyretailersareembracingtechnologybypromotingcigareventsandlegislativeactionsontheirWebsites.Wejusthavetokeepthemomentumgoingx14continuetotakeitstepsurther.x1dLookingtoapositiveutureIPCPRhasdiscussedx1cin-storemarketingchang-esx1dwiththeMAandtheIndiaobaccoCorp.thebiggestcigarettedistributorinIndia.x1cIndiaobaccotoldusx18YouAmeri-canshavetowakeupyouhavetoreinventhowyoudothingsinthisindustry.x19WelearnedthatinIndiatobaccorestrictionsarearworsethananywhereelseevenCanada.Itx19srepressivex14andyettobaccosalesareup30percent.Teyx19rex1ndingnewwaystomarketinsidethestores.Foronethingtheyx19renamingtheirloungesatermanuacturersinsidethestoreandsellingcustomerswhiletheyx19reinthere.Teyx19remakingthatpositivebrandim-pressionrightonthespot.x1dCIgarassoCIatIonofamerICaInC.CaaNormSharpPresidentandExecutiveDirectorheCAAisthenationaltradeor-ganizationorci-garmanuacturersimportersanddis-tributorsaswellasmajorsupplierstotheindustry.Origi-nallyestablishedinNewYorkCityin1937astheCi-garManuacturersoAmericatheCAAx19srootsdatebacktopredeces-sororganizationsthatoriginatedpriorto1900.x1cWearethelastmajorassociationotobaccomanuacturersletinthecountry.Ourgreateststrengthisthatwerepresentallsegmentsothecigarindustryitx19salsoourbiggestweakness.Weconsideranattackononesegmentothecigarindustrytobeanattackonallsegmentsbecauseouratesareintertwined.Wex19reallinittogether.x1cWeconductstatisticalreport-ingprogramsorourmembersx14orexamplemonthlystatreportsonindustrynetsales.Wealsodoaconidentialannualsurveyoncigarshipmentsbystatex14brokendownbypopularpriceandpremiumcigarsbyunitsandactoryvalue.x1cheseareverychallengingtimesoranyoneinthetobaccoindustry.hecurrenteconomicenvironmentthemassiveSCHIPtaxincreasestheconstantandunrelentingspreadosmokingrestrictionsthedespera-tionothestatesx14mostotheminsevereinancialstraitsormoretaxrevenuex14allthesethingscombinedmakeitverydiicult.x1cFDAregulationhascreatedanewdawnorthetobaccoindustry.Inresponsetotheagencyx19srequestorcommentswehavewrittentourgethattheyrecognizeandadheretothetraditionalclassiicationsocigarettesandcigars.x1cButIdobelievetheoutlookorbrick-and-mortartobaccoshopsisveryavorable.heyhavetheabil-itytodenyentrytothoseunderage18unlessaccompaniedbyanadult.Asinevitablytherecometobeewerplaceswheretobaccoproductscanbepurchasedtherex19sarealopportunityhere.obaccooutletswillbeoneotheewplacesletwhereconsumerscangotosmokeandchooseromawiderangeotobaccoproducts.x1dFaithfulFriendsofTobacco