Tobacco Business

[ 54 ] TOBACCO BUSINESS [ JANUARY / FEBRUARY | 22 ] several of its newer products to the FDA for review and is awaiting approval on those, but retailers can rest assured that Fantasia’s products aren’t going anywhere anytime soon. Caught in the Crossfire Retailers may be on the fence when it comes to hookah, questioning the category’s vitality in today’s marketplace. With the continuing attack on flavors, tobacco tax hikes and regulations in general, does hookah really have a future in the U.S.? “The market looks very good,” RJ responds. “You’ve got your consumers that love going out and going to the cafes and lounges where they can smoke and hang out with people. Then you have other consumers who purchase products to take home. The consumption and smoking of hookah isn’t like cigarettes and vaping where you want to get that nicotine fix or you want to get that buzz. Hookah tobacco is generally high in sugar and low in nicotine, and people consume it for the flavor. They consume it just to be social while hanging out with people, and that’s really the main purpose. I don’t think socializing and hanging out with your family and friends is going away anytime soon. I think the future looks pretty good for hookah.” Flavors will continue to play a key role in Fantasia’s products, although RJ acknowledges the hookah industry is caught in the middle of the government’s ongoing attempts to regulate flavors in other tobacco product categories. “I think we’re caught in the crossfire of those wanting to abolish flavors completely because of the vape, cigarette and cigar industries,” he says. “Hookah tobacco makes a fraction of the percentage of sales when it comes to tobacco. This is just something we’re innocent bystanders in, and it wasn’t intended for us.” RJ isn’t letting the current regulatory fight slow him or Fantasia down. He and his team are continuing to expand Fantasia’s availability, getting its products into more retail outlets and into the hands of consumers who place more value on quality than they do price point. Smoke shops currently are Fantasia’s No. 1 retail outlet, but other retailers, such as novelty stores, convenience shops and gas stations, are also having success with Fantasia’s various hookah- related products. Retailers are also often willing to carry Fantasia’s products because of the company’s no-risk guarantee that will allow them to send anything they don’t like or sell back to Fantasia for a full refund. Although the rollout of new releases may be slowed because of the FDA’s rules and regulations, RJ and his team continue to monitor the market and track consumer trends, looking for a reason or cue to expand Fantasia’s hookah and shisha offerings—and maybe even to produce more hookah accessories. Retailers who are curious about the company and who want to learn more about Fantasia and its products have the opportunity to do so in person at this year’s Tobacco Plus Expo (TPE22). It shouldn’t be too hard to find Fantasia’s booth. Just look for the giant smoke-blowing hookah. Fantasia’s sales reps will be ready to answer any questions and address any issues that may have gone unaddressed because of the pandemic. TB