CIGARS ✶ TOBACCO ✶ SMOKELESS ✶ VAPOR ✶ A C C E S S O R I E S VOL20 NO1 ✶ JANUARY/FEBRUARY 2017 TOBACCO BUSINESS ROCKIN' CIGARS WITH ROCKY PATEL NATO’S GUIDE TO FIGHTING LOCAL REGULATION WHAT A NEW ADMINISTRATION MEANS FOR YOUR BUSINESS WINNING STRATEGIES FROM A WISCONSIN RETAILER PUBLISHER'S LETTER [ 01 / 02 | 17 ] Ushering in a New Era oversee the magazine’s design and Lea Edmondson will 2017 marks a new year, a new era of exciting times for My vision for keep us all in line as the general manager, as well as assist Kretek International’s Tobacco Media Group (TMG) with sales. Also new to the magazine is Antoine Reid, this publication and more specifically, for Tobacco Business magazine. For who will be responsible for expanding our presence on many years TMG has successfully led the market in is simple: we the web and through social media. helping specialty tobacco manufacturers and retailers An important goal for us here at TMG and Kretek will provide increase their sales and market share, with groundbreak- International is to provide you with real-time, relevant ing publications and trade shows. In the new year, this you—the news coupled with compelling industry stories and out- will not change. However, you will see a renewed com- manufacturer, 2 standing visuals. It’s also a major goal of ours to provide mitment from TMG to become an industry leader and a focused, targeted distribution, larger than any other the retailer, partner to all in the tobacco industry. trade publication in the industry. Reaching 100 percent When I was first approached about the opportunity to of your target market through our publication and trade the CEO, the join the company, I was naturally drawn to the possibil- shows will provide you with new business leads and in- employee, the ities and potential for growth that I saw in these brands. crease your reach. I’ve spent 15 years working in the publishing and me- entrepreneur— Most importantly: we are here for you. Consider us dia industry, including the magazines Tobacconist, Pipes your best business tool, your ultimate business partner, with the tools & Tobacco, Vapor Voice and Cigars & Leisure. My vision your own platform and soundboard that will help you to for this publication is simple: we will provide you—the and information reach other industry professionals and retailers. manufacturer, the retailer, the CEO, the employee, the I welcome you to join us on this new, fantastic journey you need to entrepreneur—with the tools and information you need and grow with us as we move forward in a very exciting to break new ground. How will we do this? With a rein- break new direction. I look forward to meeting many of you at this vigorated print publication, a renewed focus on our dig- year’s Tobacco Plus Expo (TPE) show in Las Vegas on ground. ital initiatives, including a revamped website and active January 25-26. If you have any questions or comments, social media presence, and a trade show that will be a please email or call me on the number below. must-attend event. This change has already begun, and you can see what an amazing job the TMG team has done with the debut Happy New Year! of a refocused and refreshed Tobacco Business magazine. The magazine’s editorial team will continue to be led by Jennifer Gelfand and Renee Covino; Dana Collins will Ben Stimpson [email protected] 919-412-7380 [ 2 ] TOBACCO BUSINESS INTERNATIONAL [ 01 / 02 | 17 ] CONTENT [ 01 / 02 | 17 ] PAGE 32 PAGE 64 PAGE 14 PUBLISHERS political administration, 42 | BENEFICIAL VAPOR 68 | ELECTRIC ALLEY 78 | NEWS & TRENDS LETTER finding cigar utopia and PARTNERSHIPS PRODUCTS Vape Opportunity Cannabis rising, cig tax 2 | USHERING IN more with a rock-solid Alec Bradley Cigars' 60 | VTA VOICE: Knocks on Conve- hikes and more. A NEW ERA tobacco personality partnership with VTA Conducts nience's Door Glenfiddich Whisky Viral Campaign 86 | PRODUCT PREMIUM 30 | THE REBIRTH offers a marketing Business owners PIPES & PIPE PROFILE CIGARS OF AN APP lesson for retailers. and customers team TOBACCO A guide to new 10 | CRA’S Drew Estate breaks up to save vape. 70 | THIS PIPE LIFE products. CIGAR CORNER new technological 48 | LAKE COUNTRY Scandinavian Tobacco A New Day in ground with its Drew CIGARS: THRIVING 62 | CASAA: NEW Group’s new online 90 | GROWING Washington. Diplomat Program. UNDER A WOMAN’S OPPORTUNITIES space for pipe smokers GRASSROOTS RETAIL TOUCH Expanding advocacy can also serve as a ADVOCACY 14 | NEW 38 | BACKED BY Event marketing and efforts beyond vaping resource for retailers Still reeling from the ADMINISTRATION ROMANCE AND a focus on service is a to other harm-reducing and their employees. impact of FDA deeming EXPECTATIONS REVOLUTION winning combination for methods can only help regulations, many Will the new president Named after Ernest this Wisconsin shop. the cause. TOBACCO retailers are now being and his cabinet be a Hemingway and influ- 74 | WELCOME TO hit with an onslaught friend to the business enced by a Cuban-poet OTP PRODUCTS 64 | Q&A: MEET TPE 2017! What of local regulations and of tobacco? As with father who was impris- 58 | MAKING THE VTA’S NEW STATE to expect at the ordinances. If you’re any new force in office, oned by Castro, Ernesto MOST OF OTP SETS ADVOCATE Tobacco Plus Expo one of them, here’s there is hope. Padilla brings heart and STG Lane is looking An interview with in Las Vegas. how to fight back. soul to a boutique cigar for ways to leverage Vapor Technology 20 | CIGAR company that has every market trends and help Association’s Jake 76 | NATO NEWS: ROCK & ROLL: 2017 intention of surviving retailers realize the full Butcher MENTHOL AND REVELATIONS FROM FDA intervention. potential of an underap- LOCAL FLAVOR BANS ROCKY PATEL preciated category. Local governments are TBI talks regulation seeking to overstep their transition, the new bounds with flavor bans. PREMIUM CRA'S CIGAR CORNER [ GLYNN LOOPE ] CIGARS The Trump transition has already released a state- ment noting, “Regulatory reform is [a] cornerstone of A New Day in the Trump administration, and the effort will include a temporary moratorium on all new regulation…and a thorough review to identify and eliminate unnecessary Washington, regulations that kill jobs and bloat government.” It is also reassuring that during his service in the U.S. House of Representatives, Vice President-elect Mike Pence served as a co-sponsor of H.R. 1639, calling for D.C. a premium cigar exemption from FDA overreach. Addi- tionally, we look forward to carrying our message to the The new administration and newly nominee for Secretary of Health and Human Services, elected congressional leaders are an Congressman Tom Price of Georgia, who was also a for- opportunity for our industry. mer co-sponsor of premium cigar exemption legislation. Cigar Rights of America looks forward to working with the new administration on remediating the threat federal regulation poses to the premium cigar industry ON NOVEMBER 8, APPROXIMATELY 128,389,674 and building upon the work of the last five years with Americans exercised their civic duty, and cast a vote the message that this is a clear case of regulatory over- for their preferred candidate to lead the United States. reach that goes well beyond the congressional intent of Awaiting Donald J. Trump are questions of assembling the original Tobacco Control Act. a government, national security, campaign promises on With the change in White House leadership also healthcare reform, infrastructure development, immi- comes uncertainty about actions in Congress. Now that gration, tax, trade—and that’s just on the initial “100 the House and Senate have passed a Continuing Reso- days” agenda. However, also prominent on the presi- lution to fund the government through April of 2017, dent-elect’s transition site is the topic of regulatory reform. there may well be an omnibus budget package more in During these closing moments of the current admin- the image of the new leadership on both ends of Penn- istration, the U.S. Food and Drug Administration (FDA) is rapidly releasing “guidance” documents and planned implementation regulations for newly deemed tobacco products, with items such as ingredient listing and sub- stantial equivalence guidelines and mandates. The agency is pressing to ramp up regulation, especially in light of the election outcome. Regulatory reform is Obviously this is not the only federal agency rushing [a] cornerstone of the to issue the proverbial “midnight regulations,” nor is it a unique circumstance to this administration. Every presi- Trump administration, dent and federal agency leaps at the opportunity to leave and the effort will include their lasting mark, and to develop their legacies. Congress is also rapidly moving legislation to block such regulatory a temporary moratorium actions, especially on measures that dramatically affect the on all new regulation… national economy. Measures such as the Regulatory Reform Act un- and a thorough review der the bipartisan leadership of Congressman Bob to identify and eliminate Goodlatte (R-Va.) and Congressman Colin Peterson unnecessary regulations (D-Minn.) seek to establish sound procedures for regu- lations that have greater than a $100 million econom- that kill jobs and bloat ic impact. Cigar and other tobacco product regulation government. would fall within that. [ 4 ] TOBACCO BUSINESS INTERNATIONAL [ 01 / 02 | 17 ] [ 01 | 02 / 17 ] CRA'S CIGAR CORNER [ GLYNN LOOPE ] In that event, we will need cigar voters across the na- Fortunately for the tion to petition their members of the House and Senate cause of cigar politics— in support of exemption language that prevents FDA from advancing their draconian proposals, as approved and due largely to the by the U.S.