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WILL RETAILERS WIN IN THE END? Print E-mail

Sounds like a cigar shop, right? It is very possible that the future of tobacco consumption may turn in the U.S. as it did in England during the Victorian Era, to private homes and in private facilities such as smokeshops, smoking lounges and clubs which are extensions of stores. And shop owners will be in the right, as some do now, to say that if you wish to buy a cigar in the store, you can enjoy it on the spot. But if you bring your own cigar, you’ll pay a fee for the use of the lounge, analogous to a corkage fee at a restaurant if you bring your own wine. Of course, those who are “club members” and have paid a fee for the use of their personal, in-store humidor may do as they please!

Further support for cigar retailers against their favorite gripe, competition from mail-order and Internet houses, is also coming in the form of manufacturer’s assistance and from self-help:

  • More and more manufacturers are requiring, as a follow-up to the Leegin decision by the U.S. Supreme Court in 2007, that some or all of their brands be sold at the manufacturer’s required price. As has been the case with the famed, white-label Davidoff brand since its introduction in 1990, there is now no discounted pricing available on dozens of so-called “contract brands.” If you, a retailer, wants to carry that brand, you have to sign a contract guaranteeing your support of the manufacturer’s price structure. Period.

  • In many cases, such “contract brands” are not even allowed to be sold through any other channel than in retail stores. This applies even to huge mail-order companies such as J-R Cigars, Mike’s Cigars, Famous Smoke Shop, Cigars International and others, even though these companies also have their own retail shops. You can find contract brands in their shops, but not on their Web sites.

  • This leaves the mail-order and Internet retailers with price advantages on sales tax – none may be charged for shipments in interstate commerce – and state tobacco taxes on other brands, but even this edge is dwindling as some states have seen the revenue-positive wisdom of tax caps on cigars. Oregon, especially, has profited by collecting additional revenue by capping its per-cigar state tax at 50 cents, restoring the opportunity for box sales by in-state retailers. As this spreads, and the same concept has been adopted by several other states, the advantage of the mail-order or Internet retailers will be reduced further.

  • Finally, many stores are creating their own Web sites and featuring brands or shapes which are made solely for it by well-known manufacturers, further evening the playing field. J-R Cigars is the best example of this, with more than six dozen brands under its control, but more and more shops are offering specialties that are unique to it alone. For example, Billy O’Hara, the enthusiastic owner of the well-known Jack Schwartz Importers shop in Chicago, has a special size of the La Flor Dominicana line – the Billy Club – made exclusively for him.

    These developments all point to better times ahead for the smokeshop retailer, albeit in a slightly different format than today . . . if today’s owners can hang on. As Cmdr. Montgomery Scott advised Dr. Gillian Taylor late in “Star Trek IV: The Voyage Home” (1986) after picking up two humpback whales for transport to the 23rd Century: “Buckle up, Lassie. It gets bumpy from here.”

    And the winner is:
    Congratulations to Fred Seraphin of Miami, Florida, winner of our “Register & Win” drawing for a Cusano Taste Tour Sampler (courtesy Cusano Cigars.), a Mean Sardine cutter (courtesy Xikar) and an Andre Garcia cigar case (courtesy Andre Garcia Cases.).

    Up for your pleasure this week is a brilliant box of 25 Baccarat “The Game” Havana Churchills, elegant and sweet-tipped cigars made in Honduras by the same folks who bring you the Camacho Corojo series. They’re mild in body and easy to enjoy in the classic Churchill size of seven inches by 48 ring gauge, provided courtesy of our friends at Mike’s Cigars.. The box will be awarded in our drawing to be held on Sunday, August 3.

    To enter, just click on the “Register & Win” tab above and fill out the required information. If you have entered in the past, there is no need to re-enter; all past entries are carried forward to future drawings. You must be 21 or older to win; good luck!
    ~ Rich Perelman
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    Comments (3)add comment

    Philip J. Viverito said:

    In regard to the future of tobacco sales. If you look at the situation 100 years ago you will find that the resistance to smokers and chewers were equally stressed then as now. There was a radical health movement that threatedned the future of tobacco. Yes even then court cases were against cigarette smokers who were fired for smoking. The court case circa 1906 upheld the employer's ability to fire cigarette smokers. So do not be surprised at more current cases where employers can fire smokers.

    The YMCA which sent packages to the troops during the First World War did not want to include tobacco in these packages. However with the high casualties the threat of smoke realted deaths seemed silly. The smokes went in. When Pershing was asked if smoking should be stopped he replied "It takes the men's mionds off the war let them smoke"-paraphrased. The history of tobacco is a seldom visited topic. So the things we smokers face today are nothing new.

    End of part 1
    Sincerely,
    Phil

     
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    Philip J. Viverito said:

    Part 3
    Here is what I expect to see. Just as in the 1920's and 1930's a group of people who are like the European discidents of that era will appear in this country again. In the those days people did not smoke in public but these new comers did and the craze took root. Then too films made smoking attractive. History may not repeat itself but it does ryhme. So you can expect sometime around 2020 a definate turn around in the attitude to smoing. Like gas and oil drilling, the people want it. The harder the times the more people will want to smoke. It is a stress thing. Nicotine is a fine sedative.

    Knowledge is power. By investigating the history of smoking or using tobacco products we become informed and can defeat the anti smoking party.
    How do we do this. Simple Amercians are practical. We must appeal top common sense. We have to explain some facts. Tobacco for example saved the Jamestown colony thus preventing the failure of English colonization in the Americas. Is tobacco bad? Well here is what we really kow. Some people can have only one smoke and die supposedily because they did. On the other hand some people smoke for decades and die from other causes. No one knows Now in regard to public smoking. The anti tobacco lobby is anti American by robbing property owners of their right to free enterprise. By this I mean when government interfers with store operations it is attacking free trade. The pursuit of happiness is dennied to businesses whcih is in fact unconstitutional here. How do they get round the laws? Simple use the local and state health departments which can create ordinances that circumvent freedoms. The governement here in theU.S. wants us to accept International laws which are quite different from traditional Common Law (English Law) which is the foundation of our American laws.

    End of part 3
     
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    Philip J. Viverito said:

    part 4
    Then there is the AlGore approach to science and truth. Say it on national TV and it becomes true. Just say it. Nothing more. Take the money trial, the Scopes trial-In herit the Wind fame. The defense attorney did not argue Darwinism, heck he did not even know what it was about. By challenging conservative views of the day he made it appear that Darwinism was a fact and not a theory. It remains a theory until we find that missing link. When debating G.K. Chesteron the audiance favored Chesterton over the trial lawyer by 2 to 1. The point say it and people believe it to be true.

    Favorite question will always remain my favorite. Four people least likely to be welcome at a Marriott hotel? Chruchill, FDR, Ike and Gerald Ford. Adolf Hitler is their new demographic! Why is it that research by Hitler's doctors in regard to cranial structure (hoping to determine ehtoncity) is rejected but not NAZI research on tobacco. Next on the list of Hitler targeting has to be meat.

    Here is what we have to do. Contiune to fight on-hanging in there even though the road is rough. Keep the facts in the fore front. Argue reasonably not in a rage. Point out every inconsistant concept spoken as fact when it is fiction: i.e.tobacco is more more addictive than cocain. Then how is it that more people have quite than smoke? Argree when there point of view is correct: ie some people should not smooke-why? well because some people should not. Preach mioderation. People smoking three packs a day or 50 cigars a day are excessive.

    Look at numbers and percentages. 100,000 people aday will die from tobacco use? Where did this n mber come from? If from the governement then ask if you don't believe the government about WMD why would you beleive anything they would say?

    When a person dies it is a person and not a statistic. However, practically speaking if 350,000 people a year die from the use of tibacco how significant is this in regard to the total population. Ther are 300,000,000 people in the U.S. what percentage is that of the total population? Less that a percent of a per cent.

    Well finally we must meet anti tobacco ideas with reason and logic. We must read about the true history of tobacco and its reasonable use. Hopefully someone will provide us with a legal firm that can effectively challenge the antitobacco lobby as a civil rights issue. By that I mean the attacks on tobacco users is fast becoming a hate crimne issue in regard to the way tobacco users are treated. There should be law suits based on truth in advertizing when the antitobacco ads are put out. If the tobacco companies spread untrue numbers of ideas the antitobacco lobby would be all over them with law suits. Then there is the voting booth. Fnd out your political favorites' views on tobacco use. Don't like it vote them out.
    Sincerely,
    Phil
     
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    Did you know?

    American cigar consumption bottomed out in 1993 at 3.42 billion units (13 per capita), but premium sales are up.