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April./May
2002

SMOKE Magazine's Cigar Reviewer Contest!
TOBACCO INDUSTRY NEWS (cont.)

Indianhead Debuts Extensive Promotional
Campaign for Plasencia Reserva Organic


Indianhead, exclusive worldwide distributor for Nestor Plasencia's new 100% organic premium cigar, has put an ambitious promotional campaign into high gear.

"We have already run the first full-page ad of an ongoing campaign in Cigar Aficionado, reports Bock, "and we will support our dealers with similar placements in Smoke magazine, starting with the next issue." Indianhead has participated in Cigar Aficionado's recent "Big Smokes" in New York and Las Vegas. Within the package that contains a sample Reserva Organica, each guest at the events will receive an insert that features Plasencia's theme of "Air, Sun, and Water, the only elements needed for a truly great cigar." The back of insert states, "Cigars made the same as 500 years ago, before the Indians stopped rolling their own."

All retailers will receive a full-size stand-up counter poster of the ad, emblazoned with "Authorized Plasencia Reserva Organica Retailer."

Bock and Plasencia are currently designing a genuine neon sign, which will also be supplied on a no-charge basis to authorized retailers of the Reserva Organica cigars. "It will feature the words, 'Air, Sun, and Water' and the Plasencia logo," Bock says. "We will notify all participating tobacconists when the signs are completed."

The new Plasencia Reserva Organica line consists of four classic shapes: Robusto, Corona, Toro, and Churchill. "This is the first known cigar to receive 100% organic certification by an accrediting organization," said Bock, "The internationally-recognized Organic Crop Improvement Association, of Lincoln, Nebraska, stated on the certificate that it "tested and evaluated the methods of production, plants, and soil and determined they meet OCIA's strict standards for the production of organic foods." The cigar is a true Nicaraguan puro, consisting of all Cuban-seed tobacco grown on a special plantation near the Plasencia factory in Esteli.

The Plasencia Reserva Organica is currently available from Indianhead. Suggested retail pricing runs from $8 to $9.50, at keystone discount.

Indianhead, 16112 NW 13th Ave., Miami, FL 33160, Tel: (800) 292-4858, Fax: (305) 623-5494, Web: www.indianhead.cc


UST Posts Record 1.67b Sales in 2001

Greenwhich, CT - UST Inc. announced that fourth quarter 2001 net earnings increased 19.6 percent to $137.7 million and net sales increased 12.6 percent to $447.4 million, compared to the corresponding 2000 period. For the year ended Dec. 31, record results were achieved in net earnings, net sales, and diluted earnings per share. Net earnings increased 11.3 percent to $491.6 million on a net sales increase of 7.9 percent to $1.67 billion.

Diluted earnings per share increased 10 percent to $2.97. The Smokeless Tobacco segment revenue increased 14.1 percent to $384.2 million and operating profit increased 15.5 percent to $233.2 million, compared to the year-ago quarter. For the year ended Dec. 31, net sales increased 8 percent to $1.45 billion and operating profit increased 8.4 percent to $833.2 million. Moist smokeless tobacco net can sales increased 8.3 percent to 168.6 million in the fourth quarter and 2.5 percent to 648.7 million for the year.


Havana Group Sees Q3 Sales Slide 12%

Canton, Ohio - Havana Group, Inc. has reported that net sales for the quarter ended September 30, 2001 were $2.23 million, a decrease of $316,293 or 12% from the same quarter in the previous year. The company attributes the decline to reduction in the sales of the company's direct marketing operations, which declined $293,779, from $477,814 in 200 to $184,035 during the same period in 2001. The acquisition of Phillips & King International, effective August 4th, 2000, contributed 1.97 million, or 91.4% of the company total sales for the quarter.

Sales Edge up 4% at Havana Republic

Weston, FL - Havana Republic has reported that sales for the three months ended September 30, 2001 were $257,010, an increase of approximately 4% as compared to same period in 2000, attributed to positive results received from its Las Vegas retail cigar emporium. Store expenses were approximately 35% of sales during the quarter, compared to $121,764 or approximately 49% in the year earlier period.


SMOKESHOP - April.May, 2002

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