Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
Page 37
Page 38
Page 39
Page 40
Page 41
Page 42
Page 43
Page 44
Page 45
Page 46
Page 47
Page 48
28TOBACCOOUTLETBUSINESSNOVEMBERDECEMBER2010wantswhathecanax14ordandstillallowinganiceproxctx1dsaysDrew.x1cWex19retakingdix14erentelementsfromdix14erentwaystomaketobaccoandwex19reputtingthemintoconvenientwaysforpeopletosmokethemineverypricecategory.Comingoutwithacheapercigardoesnotadduptoinnovationx14thatx19sjustaboutpricing.Tisisaboutputtingtobaccoelementstogetherthatarebothpremiumandmasstocreatedix14erentproductsthatmeettheneedsfromaglobalperspective.x1dBeyondax14ordablepremiumsothercigartrendshavebeenheardValuegix16tpacksaremorepopular.Temore-ax14ordable-premiumtrendisnotjustforsinglesticks.GiftitemssuchasJ.C.Newmanx19sBrickHouseSamplerx14whichholdsfourdix14erentsizesincludingthenewestoneMightyMightyandhasasuggestedretailpriceof19.95x14areexpectedtobeverypopularthisholidayseason.Aretrotinholding45BrickHousecigarshasasuggestedretailof125puttingeachcigaratunder3.Retronamesarehereagain.RedLionfromHeavenlyCigarandBrickHousefromJ.C.Newmanarejusttwoexamplesofcigarcompaniesreachingintotheirrepertoireofoldbrandnamesfornewrefurbishedcigars.Cigarsarequietlymilderandofermoretastediversity.Full-bodiedcigarsarecertainlynotoutofstylebutmild-to-mediumcigarsaregettingmoreplayascigarconsumersdiversifytheirtastesaccordingtoOrtega.x1cWex19reseeingatrendbacktothemild-to-mediumcigarx1dhesays.x1cTefull-bodiedsmokersaremoreoutspokentheyx19retheonesbarkingbuttheyaretheminority.Temild-to-mediumguysarealittlequieterbuttheyx19reactuallythelargergroup.SowhenIx19mdoingeventsinstoresIx19mseeinganincreaseinsalesmoreonthemild-to-mediumsidewhichwassurprisingatxcrstbecauseitwasallfull-bodiedayearandahalftotwoyearsago.Tepurchasepatternsareinterestingx14justlikewithfoodanddrinkconsumersneedtochangeitupabit.Ithinktheyx19remorecomfortablediversifyingtheirtastesnow.x1dMorehipx16unctionalpackagingisbeingofered.J.C.Newmanx19snewraderJackx19saromaticcigarsx14dubbedx1catasteoftheislandsx1dx14arebeingpresentedinax1cbarrierbagx1daccordingtoNewman.x1cIthasnyloninthebagandkeepsthecigarsfreshinanon-humidixcedenvironmentthecigarswillstayfreshfortwoyearsaslongasyoudonx19tbreakthezip-lockseal.x1dTisisanotherexampleofyoung-adultappealastheseconsumersrespondwelltouniqueandexcitingpackagingaccordingtoNewman.Manux16acturersseethevalueincross-overbrands.SimilartohowPhilipMorrisandR.J.ReynoldsrecognizetheadvantageofexpandingbrandsoutsideoftheircoresuchaswithMarlboroSnusandCamelSnusrespectivelycigarmanufacturersalsoseethesenseinx1ccrossingoverx1dtheirbrandssuchasDrewEstatex19sAcidlinenowavailableinAcidShishaforhookahsmokers.DrewEstateisspecixccallyx1cbuildingmoreequityintothebrandswehaveandtakinglessshelfspaceatthestorelevelx1daccordingtoDrewwhoaddsthatthecompanyhasnx19treleasedanewbrandinthreeyearswhichhesaysisveryuniqueinthepremium-cigarbusiness.x1cOurstrategyiswedonx19twanttodilutedownourbrandsbybuildingnewonesx1dhestates.x1cIfyoudothatcustomersstopbuyingtheoldonestheywantthenewonesandthenayearlatertheretailerhastodiscounttheolderbrand.ApremiumbrandlikeAcidisthetypeofproductthatcantranscendclassesoftobaccoandthatx19swhatwex19reexploringnow.x1dTOBGraycliffx19sJeanEdmondDrewEstatex19sJonathanDrewandaColoradocigaracionadoenjoytheirfellowshipatSmokerFriendlyx19srstannualRockyMountainCigarFestival.Nickx19sStickswerereleasednationallythisyearbyPerdomo.Thex1cbarrierbagx1disJ.C.Newmanx19shipandfunctionalpackageofferingforitsTraderJackx19saromaticcigars.PerdomomadeallitscigarsmoreaffordablebyabsorbingthetaxcostofSCHIP.