BULLETIN: GURKHA ABSORBS COJIMAR CIGARS

Los Angeles, June 4, 2010 – Miami-based Beach Cigar Group, owner of the high-end Gurkha brand, has made its first acquisition, taking over the distribution of Cojimar Cigars and in the process of acquiring the company.

Cojimar, founded by Rosie Perez in 1996 and also headquartered in Miami, has been a leading player in the handmade, flavored-cigar market under brand names including Cojimar, Carnaval, Earth Supernatural and NU by Cojimar. Beach Cigar owner Kaizad Hansotia (pictured) said “she was looking for a good partner, somebody who was good for her cigars.

“This gives my sales guys entree into cigar shops that we never did before; it’s a good program to have for our sales operation and will generate revenue from a market we didn’t ever touch. Cojimar is the no. 1 flavored cigar out there.” Cojimar’s top-selling cigar is the vanilla-flavored Senoritas, a 5-inch by 30-ring small panatela and the overall sales volume was characterized as a little more than two million cigars annually.

Hansotia explained that Beach Cigar will immediately take over warehousing and distribution of all Cojimar products and will complete the acquisition “over the next six months.” Cojimar’s small staff will be retained by Beach Cigar and Hansotia noted that there would be essentially no changes in the Cojimar lines or packaging for the next few months, but has big plans after that. “We’re looking to expand it significantly.”

Perez owns, and will continue to own, the Dominican factory where Cojimar is produced, but will now sell her cigars directly to Beach. “She will be in charge of manufacturing,” said Hansotia.

It’s the first acquisition for Hansotia, but not the last. “We’re on a buying spree,” said Hansotia, noting more activity is already in the pipeline but adding “we’re still looking.”

On the Gurkha front, Hansotia said his Evil, Assassin, Archive and Vintage Shaggy lines are all performing very well and are “always on back order.” The Vintage Shaggy, with an open foot, is currently his best seller.
~ Rich Perelman

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