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CIGARS ✶ TOBACCO ✶ SMOKELESS ✶ VAPOR ✶ A C C E S S O R I E S VOL20 NO2 ✶ MARCH/APRIL 2017 TOBACCO BUSINESS DAVIDOFF’S JIM YO U N G ON WHAT LIES AHEAD—FOR THE INDUSTRY AND HIS COMPANY TIPS FROM THE TB TOP 50 RETAILERS CASA DE MONTECRISTO’S RETAIL ROLLOUT WHAT’S IN STORE FOR TOBACCO & VAPE SHOPS HOW TO BUILD A HUMIDOR PROGRAM PUBLISHER'S LETTER Motivate and conquer One of the things I have realized, as have many of us, is that ing all played a big part in our overall success. Of course, prod- when you want something in business or in life it’s not always as ucts are a hugely important piece of the puzzle and ultimately easy to achieve as some people make us feel it will be. It can be determine the success you have, but if you employ great people far more challenging. However, I have found that if you apply and build a great team anything is possible. We also need oth- the right business strategies and remain consistent and disci- er ingredients like goals, focus, great attitudes and ideas, but a plined, you have a much better chance at succeeding. great team is essential to making it work. When there's as much change in the tobacco industry as we We’d like to encourage you to make plans now to attend next face today, reaching your business goals tends to be more dif- year’s TPE show, to be held January 31-February 1, 2018. We’ve ficult. What steps can we take as managers, business owners, got a great recap and overview of this year’s show in this issue CEOs and entrepreneurs to diversify our businesses so that we of Tobacco Business (See page 26). Also, this issue focuses on some are not so dependent on the boom-and-bust cycle? unsung heroes in the tobacco industry—the retailers who are A few weeks ago, we held our annual TPE show in Las Ve- the much-needed connection between the manufacturers and gas—and what a tremendous show it was. The latest premium consumers. From the reveal of our annual Top 50 on page 12 cigars, vapor and alternative products were showcased over the to an insightful interview with tobacco retailer Richard Hoyt two-day show, while vendors and attendees came together to on page 20, our goal is to show you the people who don’t often kick off what will be a successful 2017. The feedback we re- enough get the recognition and accolades they deserve. This ceived from the show’s attendees and exhibitors has been very issue also provides a look at Davidoff Cigars, a company that’s positive, including several vendors who reported making record helped define the premium cigar business both here in the U.S. Osales at this year’s show. and abroad. President of Davidoff North America, Jim Young, What made TPE 2017 such a success? The people. We had who’s also on the cover of this issue, tells you how Davidoff went an amazing TMG marketing team, led by Ellie Hanson, as from a single retail store to a company with numerous cigar well as the support of Chris Price and his team over at Trade brands and retail stores spread across the globe (See page 44). Show Logic. Everyone worked together behind the scenes, I would love to hear from you and gain your feedback about with one common goal, to create an amazing experience and the TPE show and our magazine. provide a safe place for attendees and exhibitors to have fun and do business all under one roof. Ellie spearheaded the mar- keting campaign that reached vendors and retailers on a huge scale. Social media, email and digital marketing and advertis- Please email me on [email protected] VOL20 NO2 ✶ MARCH/APRILTO 2017BACCO TOBACCO BUSINESS MAGAZINE MANAGING DIRECTOR Ben Stimpson TMG INTERNATIONAL Lea Edmondson, General Manager of Sales and Administration BUSINESSGENERAL MANAGER, SALES AND ADMIN. Lea Edmondson EDITOR IN CHIEF Jennifer Gelfand MAGAZINE TPE & VEI MANAGEMENT CONTRIBUTING EDITOR Renée M. Covino Hilary Manning, Tradeshow Logic DESIGN DIRECTOR Dana Collins TBI ADVERTISING COPY EDITOR Allie Spelman 5449 Endeavour Ct, Moorpark, CA 93021 DIRECTOR OF DIGITAL DESIGN Antoine Reid Phone: (805) 531-8888 CIRCULATION MANAGER Keith Roos A DIVISION OF KRETEK INTERNATIONAL, INC. PRESIDENT AND CEO, KRETEK INTERNATIONAL Mark Cassar CHIEF MARKETING OFFICER Jason Carignan CHEIF FINANCIAL OFFICER Don Gormly Tobacco Business is published bimonthly at 4441 Six Forks Road, Suite 106-107, Raleigh, NC 27609. Printed in USA. Copyright 2017 by TBI, LLC. Subscription rate is $45.00/year. Send paid subscriptions to Tobacco Business at same address as mentioned above. For reprint information, contact Lea Edmondson at 877-702-4427. Copying: Permission is granted with users of the Copyright Clearance Center Inc. To photocopy any article, with the exception of those for which separate copyright ownership is indicated on the first page of the article, provide a base fee of $1.25/copy. Tobacco Business International is a registered trademark of TBI, LLC. POST- MASTER: Send address changes to Tobacco Business, 4441 Six Forks Road, Suite 106-107, Raleigh, NC 27609. [ 2 ] TOBACCO BUSINESS [ MARCH / APRIL | 17 ] CONTENT PAGE PAGE 44 76 PAGE 20 to play the evolution is firmly committed to COVER STORY 66 | O BROTHERS, VAPOR DEPARTMENTS 44 | DAVIDOFF IN card. Now, he’s consid- expanding its brick-and- WHERE ART THOU? 80 | THE FUTURE 2 | PUBLISHER’S AMERICA: ONWARD ering shuffling a new, mortar footprint. OF TOBACCO LETTER Siblings in Philadelphia & UPWARD ancillary deck. found success with a & VAPOR RETAIL Jim Young, president of PREMIUM BYOB cigar lounge. Will deeming regula- 6 | IN THE FIELD: Davidoff North Ameri- 26 | TOBACCO CIGARS tions be the death of NEW BEGINNINGS ca, provides insight to PLUS EXPO 2017 48 | THE DAVIDOFF ACCESSORIES the $1.4 billion vapor FOR DREW ESTATE TPE 2017 wowed the EXPERIENCE what lies ahead for one 72 | BOVEDA: IN channel—and if so, An interview with of the world’s leading industry with informa- The premium cigar com- CONTROL what will that mean for Shawna Williams, premium cigar brands. tive seminars, exciting pany looks beyond prod- After two decades, the retail landscape? Western Regional speakers, a bustling ucts and into new retail Boveda’s two-way hu- TB talked to industry Sales Manager at trade show floor and spaces and experiences midity control products experts to find out. Drew Estate FEATURES lots of new features. to grow its brand. are coming into their 12 | TB’S TOP 50: own in the tobacco and 86 | ELECTRIC 8 | NATO NEWS GOOD NEWS, BAD OTP/PIPES/RYO 54 | CIGAR SENSE: cannabis industries. ALLEY: SISTER Local Tobacco NEWS, GROWTH 32 | EAST CAROLINA 12 STEPS TO A HIP VAPOR CHECKUP Ordinances VIEWS RYO: COMMITTED TO CIGAR LOUNGE 76 | PK›FORWARD: Since the deeming reg- Conversations with QUALITY Drawing on This Arizona tobacco HELPING RETAILERS ulations were finalized, 70 | CRA CORNER some of the country’s extensive experience in outlet retailer also hap- LEVERAGE ALTERNA- you don’t see tobacco All Politics is Local 50 largest tobacco outlet tobacco growing, blend- pens to have a knack TIVE ACCESSORIES outlets rushing to start retailers prove that they ing and cutting, this local for running a modern Phillips & King Inter- up sister vape shops, 92 | VAPOR VOICE are a resilient bunch, producer has forged a cigar lounge. national’s new buying but there are those that New Beginnings motivated for growth. national presence. guide offers progres- are keeping existing 62 | HOW TO LAUNCH sive retail stores one- concepts going—with 94 | SOUND ADVICE: 20 | SMOKE ’N GO: 38 | CASA DE MONTE- A SUCCESSFUL stop-shop access to fingers crossed. QUALITY IMPORTERS’ EVOLVE AND GO CRISTO: CREATING A HUMIDOR PROGRAM cannabis and vaping MICHAEL GIORDANO When Richard Hoyt CIGAR RETAIL PRES- Interested in bringing accessories. Insights on began managing his ENCE With the opening premium cigars into Entrepreneurship father’s tobacco outlet of three new “ground- your store? Here’s how business, he chose up” shops, this to get started. premium cigar brand [ TOBACCOBUSINESS.COM ] TOBACCO BUSINESS [ 3 ] IN THE FIELD Shawna Williams, Drew Estate’s western regional sales Tobacco Business: What’s your manager, has been working with Drew Estate since favorite part about being in sales? January 2016. During her first year with the company, Williams: That I have the opportunity to travel and meet Drew Estate has been going through a “rebirth,” from new people. Every day is different. I also love the comrad- the introduction of a new CEO, Glenn Wolfson, to the ery that I have with colleagues and with the customers recent hire of David Lazarus as vice president of sales. who have become friends and partners over the years. In a move toward returning to its roots, the company What are the biggest obstacles also recently named Jonathan Drew the new president you encounter on a daily basis? of Drew Estate. One of the biggest obstacles I encounter on a daily ba- As one of the leading premium cigar companies in sis is one that affects us all: the need to adapt in an ev- the world, Drew Estate relies heavily on everyone within er-changing market. There is a constant battle regarding the company to help sell and promote its products. Wil- state OTP taxes. The federal government is now regulat- liams works with other Drew Estate sales representatives ing our humidors. Smoking bans, new legislation, prop- to promote Drew Estate in Louisiana, Missouri, Kan- ositions and the list goes on of different challenges and sas, Oklahoma, Texas, New Mexico, Colorado, Arizona, limitations just to enjoy a fine cigar and making a living Nevada, California, Oregon, Washington, Arkansas and in an industry we all love.
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