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26TOBACCOOUTLETBUSINESSNOVEMBERDECEMBER2010lotofsensethatoneofthestandoutcigartrendsacrosstobaccoshowsthissummerx14includingtheIPCPRshowinNewOrleansandSmokerFriendlyx19sannualfestivalinBoulderColo.x14istheo0eringofpremiumcigarsatmorea0ordableprices.x1cDuetotheeconomywex19regettingbettercigarsatalowerpricex1dobservesJeanEmondambassadorforGraycli0Cigars.x1cNowwithunemploymentat1015sometimes17percentinvariousmarketsacrossthecountrytherearealotofpremiumcigarscomingoutretailingfor6810thataremagnicentandcanholdacandletopremiumcigarsathigherprices.x1dAndsomeareevenlower.MyFatherCigarsintroducedacoupleofnewprice-consciouscigarlinessuchasLaRelobainthe5to7rangeaccordingtoJoseOrtegavicepresidentofsales.x1cBeforecigarslikethiswereinthe9to11rangebutinordertocompetewehadtocomedownfromthatpricerangex1dhesays.BrickHouseCigarsfromJ.C.NewmanCigarCo.wasthecompanyx19srstbranddatingbackto1895.Itwastakeno0themarketin1937butwasbroughtbacklastyearasthecompanyx19sx1crstSCHIPcigarx1daccordingtoNewmanx1catremendousvalueretailingbetween4.75and5.95.Itx19sgearedtowardthecigarsmoker21yearsandupandisdoingverywell.x1dPerdomox19sNickx19sStickswasabrandavailableonlyinMiamiinitiallyx14andthenthecompanyreleaseditnationallythisyear.Itcomesinfoursizesandthreewrappersx14andwhatx19sx1creallygreatx1daccordingtoArthurKempervicepresidentatPerdomox14isthatitretailsfor3.75to4.50acigar.TatispossiblethankstoPerdomox19sx1cverticalx1dnatureKemperrelays.x1cWhatwex19vedoneinthepasttwoyearsisprovideconsumerswithsuper-premiumcigarsatgreata0ordablepricesx1dhesays.x1cAndthereasonwecandothatiswex19reacompletelyverticalmanufacturerwecontroleveryaspectofourbusiness.Wegrowourowntobaccowemakeourowncigarsandweevenmakeourowncellophaneandhaveourownboxfactory.Sobybeingcompletelyverticalwex19reabletoo0erthebestprices.Terex19snomiddlemanbetweenusandtheconsumer.x1dAndthatadvantagespreadsbeyondthenewa0ordablepremiumline.x1cWestillhavesuper-premiumcigarsandourmostexpensiverightnowisPerdomoPatriarchAorpedox14butitretailsfor9andreallyitx19sa20cigaro0eredatlessthanhalf-pricex1dKemperexplains.x1cTePerdomoReserveChampagneusedtobe8nowyoucanbuyitfor6.x1dTatx19sbecauseinadditiontoutilizingitsverticalnatureando0eringanewa0ordablepremiumlinePerdomohasmadeallitscigarsmorea0ordablebybeingx1ctherstcompanytoabsorbthetaxcostofSCHIPx1daccordingtoKemper.In2009Perdomoabsorbedthecoston70percentofitsbrandsandthenfollowedupthisyearbyabsorbingthetaxontheremaining30percent.x1cWebasicallyreducedourpricesbyabsorbingitx1dheexplains.x1cItcomesdowntosupportingcigarconsumers.Peoplestillwantqualityproductsbutiftheyhave20insteadofbuyingtwocigarstheymaywantthreeorfournow.SoatPerdomoweansweredthatcallwex19redoingtherightthing.x1dTecompanyhasbeengettingthewordoutthroughagrassrootse0ortofstoresignsforeventsandaExingstickersonboxes.x1cItx19snotenoughtotreadwaterandstayaliveyouwanttogrowyourbusinessandthisindustryx14thatx19swhywex19reinbusinessx1dKempersays.AlsolookingatthebigpictureDrewseesa0ordablepremiumsaspartoftheindustryevolutionandcontinuedcigarpassionontheproductionsideaswellasontheconsumptionside.x1cWeandtheindustryaregettingbetteratinnovatingwhattheconsumerreallyPerdomox19sArthurKemperpraiseshiscigarcompanyx19sx1cverticalx1dnatureallowingforthelowestprices.J.C.Newmanx19sBrickHousesamplerandretrotinmakeforaffordablegiftandholidayitems.JonathanDrewseesaffordablepremiumsaspartofthecigarindustryx19sevolution.