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46TOBACCOOUTLETBUSINESSJULYAUGUST2010oxfthepioneeringmanuxfacturersintheroll-your-ownRYOsegmentandacompanythathassuccessxfullyexpandedxfromatinystart-uptoamanuxfactureroxfawidearrayoxftobaccoproducts.Inhiso6cewhileoccasionallypausingto7eldcellphonecallsxfromcustomersRousetellsTobaccoOutletBusinesshowhisbackgroundhelpedshapethecompanyhowitscustomer-centricphilosophyhelpeditsucceedandwherehethinksthetobaccoindustryisheadinginthexfuture.DeeprootsRousex19sxfamilyhasbeeninvolvedinthetobaccoindustryandxfarmingxforsevengenerations.Wearingbluejeansandbootsandrelaxinginachairupholsteredinaxfabricembroideredwithlittlepipesandcigarsherecallsasayoungsterworkinginthetobaccoauctionwarehouseslateintothenightandxfallingasleepexhaustedonpilesoxfxfragranttobacco.Whenhegraduatedcollegein1980his7rstbusinesswasintobaccotradingwhichinvolvesspeculatingonleaxfinabusinessknownasx1cpinhooking.x1dOvertheyearsheandpastgenerationsoxfhisxfamilyhavebeeninvolvedintobaccoxfarmingauctionswholesalemanuxfacturingandretail.Hestillownstobaccoxfarmlandtodayalthoughherentsitouttoothergrowers.x1cWex19vecompletedtheentirespectrumintobaccoindustryx1dhesays.x1cOurxfamilieshavebeeninitxforeveritseemslike....Iwasbornintoitandraisedinit.x1dIn1988hehelpedxfoundatobaccoindustryandxfarmingadvocacygroupknownasFriendsoxfTobaccoanorganizationthatmostintheindustryarexfamiliarwithxforitspastlobbyingworkinWashington.Atitsheightthegroupcountedsome16000members.x1cItwastheonlygroupatthetimetopromotetheeconomicimportanceoxftobaccox1dRousesays.x1cIdidnx19tknowitwouldgrowintothemammothorganizationthatitdid.Mydadoncesaidx18Ixfyoudonx19tlikethewaysomethingisdonewhydonx19tyoudosomethingaboutitx19Hebelievedinstandingupxforwhatyoubelieveininsteadoxfjusttalkingaboutit.x1dRousewaspersonallyveryactiveinthehallsoxfCongressworkingtopromotetheimportanceoxftheindustryonbehalxfoxfmanuxfacturersxfarmersandretailers.AshiscompanygrewhoweverhispoliticalactivityandworkwiththeFriendstookabackseattothedemandsoxfrunningthebusiness.x1cImissitbutotherorganizationsaredoingagoodjob.NATOdoesagoodjobandtheTobaccoGrowersAssociationoxfNorthCarolinadoesatremendousjobxforourxfarmers.x1dItx19seasytoseethatRousebelieveshisxfamilyx19slonghistoryintobaccogiveshimanadvantageoverothermanuxfacturerssayingthattobaccoistrulyx1cinourblood.Forlotsoxfmanuxfacturersitx19sjustsellingaproductitcouldbetobaccoorPepsi.Somepeopleatthesecompaniesdonx19thaveaclueabouthowtobaccoisgrownorprocessed.Aeyarejustinittomakeadollar....Youhavetounderstandgrowingblendinggradesx14youhavetoknowthesebusinessesasgoodasyourown.x1dQuickgrowthRousexfoundedMRin1997operationsbeganin1998.HestartedthebusinesswithonlythreepeoplemakingRYOtobacco.AecompanyreleasedFarmerx19sGoldRYOandwiththemottooxfx18GreatProductataFairPricex19startedquicklypickingupmarketshare.MRisnowoneoxfthenationx19slargestprivate-labelprovidersoxfRYOandpipetobaccoandmanuxfacturesawidearrayoxfproductsincludingFarmerx19sGoldpipetobaccoDeanx19sSweetCigarillosandDeanx19sCigarsalittle-cigarbrandthatcomesinawidevarietyoxf-avorsincludingFullFlavorMildMentholPeachRumWildBerryCherryVanillaandChocolate.FullFlavoristheNo.1sellerxfollowedbyMildMentholCherryandVanilla.Deanx19sCigarsHeavyWeightsthecompanyx19smostrecentproductintroductionare100mm7lteredcigarsthatweighinatmorethanxfourpoundsoxftobaccoper1000sticks.Aeycomeinthenine-avorsmentionedaboveandarepresentedin20-cigarsoxftpacks.Instatesthatimposeadditionaltaxesonlittlecigarsweighingxfourpoundsorlessper1000suchasPennsylvaniatheHeavyWeightsaresellingwellRousesays.x1cAerewasaneedtocomeupwithaproductthatwouldcomplywiththesemarketsx19newrestrictions.Wewantedtocomeupwithaproductthatwasafordablexfortheconsumertosmoke.x1dAepipetobaccoblendsarethecompanyx19smostpopularproduct.x1cWhentheSCHIPbillcamedownitbasicallyAtobacco-leafagfyingoutsideothemainbuildingshowsthecompanyx19stiestotheregionandoneotheareax19smainindustries.MRHoldingsissituatedamongarmeldsineasternNorthCarolina.