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24TOBACCOOUTLETBUSINESSJANUARYFEBRUARY2012tellsTobaccoOutletBusiness.UrbanosayshehasbeenthinkingaboutllingthisnicheeversincehewasayoungmanworkingasachefinNewEnglandandwaspricedoutofpremiumcigarsduringthecigarboom.x1cAftercigarsreallytookothepremiumsegmentskyrocketedinpriceandthenwasunaordabletousx18everydayx19guysx14anditwassohardtondagoodbundleproductthathadavorandrollednicex1dhestates.x1cNowwiththechangeintheeconomythisnicheforqualitybundlesisgrowingandgrowing.x1dUrbanosaysqualitybundlesareawin-winforcustomersandretailers.x1cIx19vegotoneretailertellingmehex19smakingtriplekeystoneoofthesex14hex19sbuyingthemat1andchangeasticksellingthemforaround4astick.x1dUrbanooersax1ccompletelyexiblex1dprivatelabelprogramtoretailerslookingtogetintotheirowncigarlabeloeringmeaningx1cwedonx19thaveaminimumopeningorderx14youcanbuyonebundleor200x1dUrbanosays.x1cInturnaretailercandowiththatbundlewhatheorshewantsx14someguyssellitasahouseblendsomebreakitintovepacksortenpacksandputtheirownstickersonit.IknowthateachstoreisdierentandIx19mwillingtoaccommodatewhateverthatshopownerislookingfor.x1dAdditionallyhestipulatesthathisarex1cbetterbundlesqualityhandmadelongllercigarsmadeasrst-runsnotsecondsordamagedx1drolledbythesamepeoplewhorollhispremiumcigarsonecigaratatimeandallwholesalingforunder3acigarsomeunder2.Bythesummerheplanstoexpandhisprivatelabeloeringtoshortllercigarswhichx1cwillalsoblowalotofpeopleawayx14theyx19llbeabletomakeatleastafullkeystoneonthemaswell.x1d7etobaccooutletindustryx19sleadingplayerx14SmokerFriendlyInternationalx14isabigfanofoeringitsownprivatelabelacrosstobaccocategoriesbutitrecentlybeefedupitsselectionofpremiumprivatelabelcigarsincludingbundles.x1cOurpremiumcigarsaleshavebeengrowingforthepastveorsixyearsatagoodclipeveryyearandsomeproductshavedonesowellinourstoresthatwewantedtocomeoutwithacomparableprivatelabelproductwithournameonitsocustomerswouldknowexactlywheretocomebackandbuyitx1dreportsJeremyWeinersalesandmarketingmanagerforSmokerFriendlycorporatestores.Bundlesrepresented68percentofthetotal2011year-to-dateunitsatpresstimeinlateDecemberforpremiumcigarsalesatCollettEnterprisesaSmokerFriendlyauthorizeddealerinIndiana.7ecompanyx19sprivatelabelbundlesrepresented33percentoftotalunitsalesforthesametimeperiodaccordingtoBrianPowellgeneralmanageratCollett.7ecompanyx19soverallpremiumcigarbusinesswasup52percentfrom2010.x1cWecertainlyappreciatethevalueofprivatevalueitgivesustheopportunitytooeraqualityproducttocustomerstheycanx19tgetanywhereelsex1dstatesPowell.x1c7atx19sthekeytoSFpremiumcigarsx14theyx19reofthehighestqualityataordableprices.x1dPowellrelaysthatSFbundlesaretypicallymerchandisedateyelevelorx1cthemostattractivehumidorpositionx14wewanttosellthosex1dhesays.Headdedthattheprivatelabelproductshaveespeciallypickedupinthelastsixmonthsattractingmorepremiumdomesticcigarcustomersx14andnowtheyarealsoutilizedbycashierstosuggestive-selldomesticcigarcustomersovertopremium.NewSFprivatelabelitemsarethelatestdrawandkeeptheprivatelabelcategoryfreshasanyother.x1c7esearecigaritemswithahistorybehindthemx14itx19snotlikewex19rereachingoutwithsomethingtotallynewtoseeifitwilldowellx1dsaysWeiner.x1cWeliketochoosecigarsthathavedonewellinourstorestogiveextravaluetoourconsumers.x1dForinstanceRockyPatelx19sx1c7eEdgex1dcigarisagoodsellerinSFcorporatestoressothetobaccoretailgiantteamedupwithRockyPateltocomeoutwithitsownversionofthecigarx14thejust-launchedSFRockyPatelco-brandedcigarwhichretailsforabout4.99astickinColoradowith40percentOTPtax.x1cItx19smoreofavalue-brandedRockyPatelcigarthatx19swherewewantedtogowiththisx1dsaysWeiner.ShortandSweetAnotherrecentprivatelabelcigarlaunchatSmokerFriendlyisthenewPigletcigarasmallerversionringgaugeandshortersmokeofitsBigPigcigarlaunchedacoupleyearsago.Itisidealforcigarcustomersincolderclimatesandforthoseonlyabletoenjoycigarsinashorteramountoftimeagrowingtrendthankstosmokingbansandotherrestrictionsoncigarsmokers.EnjoyingshortersmokesisagrowingprivatelabelcigartrendobservedbyECMICigarstheonlyindependentcigarmanufacturerinIrelandwhichfocusesentirelyonproducingprivatelabelbrandsandwantstobethego-tocompanyforretailerswhowanttodeveloptheirownprivatelabelcigar.x1cOverthepastdecadeorsowex19veseeneverycountrygraduallyshiftingtosmallerandsmallermodelsx1daccordingtoAoifeOx19Dowdthecompanyx19ssalesdirector.x1cWithsmokingbanscomingintoforceacrosstheU.S.smokerswhotraditionallysmokedqualitybigcigarsfacehugeconstraintsontheirsmokingtime.Soonaday-to-daybasisthatsmokercanenjoyaqualitycigarillothatgivesagood10-minutesmoke.PeopleintheU.S.donx19ttypicallyassociatesmallcigarswiththatlevelofquality.ButthereisanareainbetweenwhereIseehugepotentialforgrowth.x1dOverallinitscorporatestoresSmokerFriendlyaimstox1cprovidealargervarietyofcigarsthanmostintheDenvermetroareaSmokerFriendlyrecentlylaunchedPigletasmallershorterversionofitsBigPigprivatelabelcigar.