|
 |
June,
2006
|
TRENDS AND TRENDSETTERS IN SPECIALTY TOBACCO RETAILING
Davidoff of Geneva Buys Manhattan Franchise
Davidoff of Geneva USA and the DelRossi family completed the sale of the Davidoff Columbus Circle store at the Time Warner Center in New York City to Davidoff of Geneva USA, signing an agreement on May 5, 2006 following several weeks of discussions.
Davidoff of Geneva USA now operates the store as a corporate entity, similar to the store on Madison Avenue. Michael Herklots has been appointed as the general manager. Under the terms of the agreement, Davidoff of Geneva USA hired the existing staff. The store will continue to provide a complete range of Davidoff cigars and accessories as well as products from other cigar vendors.
The DelRossi family’s original business plan was to acquire multiple Davidoff licenses and operate stores in other locations. However, the capital cost for such an expansion proved problematic, according to Paul R. DelRossi, president of North Fork Partners, a holding company for DelRossi family investments. Despite the growing sales volume of the Columbus Circle store, the overhead cost to manage a single location in New York created a continuing business risk, the parties said in a written statement. Acquisition of the business by Davidoff of Geneva USA, which already has an adequate infrastructure in place, made strategic sense, according to Peter Baenninger, president of Davidoff of Geneva USA.
The shop was the first retailer to open in the luxury retail concourse of the Time Warner Center in Spring 2004.
|
New York Internet Tobacco Sales Ban Challenged
SALAMANCA, NY - A group of cigarette distributors and sellers has sued the state of New York seeking to overturn a law banning Internet, telephone, and mail order tobacco sales. The suit, filed by the Association of Responsible Cigarette Sellers (ARCS), contends the 2000 state law violates the U.S. Constitution’s commerce clause and the Indian Commerce Clause, which gives the federal government the sole right to regulate commerce with Indian tribes. Many Internet sellers are located on tribal reservations in western New York. Authorities consider Internet cigarette sales to be illegal because they violate laws aimed at collecting sales taxes and stopping sales to underage smokers. In January Philip Morris USA agreed to end shipments of any that states deem illegal, including Indian tribes.
|
|
BITS & PIECES
A smoking ban prohibiting smoking in bars, restaurants, and outdoor dining areas was passed in Santa Fe, New Mexico on June 1 and is scheduled to become effective on July 1, 2006. Cigar bars are exempted from the ban, but a business must make annual sales of more than $10,000, or 10 percent of its revenues, from the sale of tobacco or rental of on-site humidors to qualify as a cigar bar.
The Madison, Wisconsin City Council approved a smoking ban exemption in March allowing cigars and pipe smoking in bars that show at least 10% of income from such tobacco products. Only one bar, Maduro, meets the requirement, although others could apply.
Smoker Friendly International announced the addition of three chains of tobacco stores to its authorized dealer program: LOLO, Warner Robbins, Ga.; Stogies Smokeshops, Burley, Idaho; and Discount Cigarette Superstores, Pensacola, Fla. Program participants sell Smoker Friendly private label merchandise within exclusive territories.
|
|
NEW & NOTABLE
Camacho Cigars has entered a partnership with the Detroit Tigers Major League Baseball team, announced Christian Eiroa, president of Camacho Cigars. Under the arrangement, the upscale cigar bar and lounge at Comerica Park has been renamed the Camacho Cigar Bar. Entrance to the facility is reserved for ticket holders with access to private boxes, Tiger Club access, or by invitation. Miami-based Camacho Cigars held two grand opening nights, one on June 12th for retailers and a public unveiling on June 23rd.
Brothers Russ & Rich Spangler have opened Centro Cigars, an upscale cigar & gift shop, in west Lawrence, Kansas. The facility features a dedicated smoking oasis, Club Centro, which is appointed with an HD TV, leather chairs, and a choice of music. The facility is except from the township’s two-year-old smoking ban since it’s located inside the tobacco shop. Rich previously ran a cigar shop in Overland Park, Kans. for six years.
Big Steaks Management LLC has spent $100,000 to renovate the Havana Club on Water Street in Baltimore, located directly above its Ruth’s Chris Steak House restaurant. The redesigned nightclub and cigar lounge opened May 5 and includes luxurious soft-leather couches and chairs, oriental rugs, rich fabrics, and warm tropical colors. The facility features a state-of-the-art sound and lighting system, extensive wine and cigar lists, and a light menu features soups, tapas, and caviar. Havana Club hosts events including business meetings, wedding receptions, and private parties. Three different membership levels are offered to a members-only lounge, ranging from $400 to $1,000 annually.
Portland, Oregon’s El Gaucho restaurant, a high-end steakhouse, has rededicated its renovated cigar room on the ground floor of the Benson hotel. The move comes after neighboring Washington state voters passed the nation’s most restrictive smoking ban last fall, forcing El Gaucho to close the cigar room at its Seattle, Washington restaurant in December. Chad Mackay, president of Mackay Restaurants, the Seattle-based operator of El Gaucho, said the outcry over the forced closure convinced him to provide the same service at its Portland restaurant, which is currently not subject to an indoor smoking ban. “It reminded us how lucky we were to have it,” he said. The Portland restaurant’s cigar room has been refitted with new retro-style lounge furnishings and an improved ventilation system to return it to its former glory. The new facility held its first cigar night on March 10.
|
SMOKESHOP - June, 2006
|