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August/Sept.
1999

Sell SMOKE Magazine!
PRODUCERS, SUPPLIERS, REGULATIONS & ASSOCIATIONS


RETAIL PROMOTIONS
Hitting Pay Dirt with Hoyo de Monterrey

UPPER SADDLE RIVER, NJ - Villazon & Co. has introduced a most unique marketing scheme with its Hoyo de Monterrey "Win an Acre" sweepstakes, in which the grand prize customer wins the deed to an acre of prime Honduran tobacco real estate.

"This is the ultimate dream for cigar lovers," said Bill Roethel, Villazon's vice president of marketing. "Villazon wants to extend a unique opportunity to cigar enthusiasts. This unique promotion was designed to reflect Hoyo de Monterrey's prestige and Honduran heritage."

In addition to the turf, the grand prize winner gets an all-expenses paid trip for two to Honduras and a lifetime supply of custom cigars rolled by Estelo Padron. Ten first prize winners receive personalized humidors stocked with Hoyos.

Customers can enter the contest by completing an official entry form, which are provided to participating tobacconists.


PACKAGING REGULATIONS
Cigar Manufacturers Fight Massachusetts Warning Labels

BOSTON, MA - Seven major manufacturers have asked a federal judge in Boston to block the nation's first cigar labeling rules which were to go into effect in early August.

Massachusetts Attorney General Tom Reilly, whose office issued the new regulations, agreed to postpone implementation of the new rules, and those regulating the sale of cigarettes, until Feb 1. to allow Judge William G. Young time to act on the request.

The legislation requires manufacturers to place a conspicuous black and white label on every package of cigars - full-sized or small - covering at least 25 percent of the front or top panel.

The labels, which must be rotated periodically, would read : "Warning: Cigar Smoke Contains Carbon Monoxide and Nicotine, An Addictive Drug'' or "Warning: Cigars Are Not a Safe Alternative to Cigarettes or Smokeless Tobacco Products."

Manufacturers say that it would be nearly impossible to produce separate packages for Massachusetts, forcing the labels to be placed on all products they sell.

"Cigar manufacturersÉgenerally would find it economically and physically impracticable to establish and maintain a separate inventory system and distribution system for cigars destined for Massachusetts," said the lawsuit filed in July in federal court.

Not only must the labels appear on the boxes, but also in any advertising. The opposing manufacturers, which include Consolidated Cigar, General Cigar, Havatampa, and John Middleton, say the rules would all but wipe out cigar advertising everywhere, even outside of Massachusetts. The labels must cover at least 20 percent of any advertisement, which manufacturers say would radically alter the intended message, reducing or even eliminating all cigar advertising.

The new rules also impose other curbs: outlawing self-service displays, outdoor advertising or ads that can be seen by kids, and product giveaways. They also require cigars to be placed beyond the reach of smokers.

If Congress were to pass its own labeling legislation, as it has been urged to do by the Federal Trade Commission, Massachusetts officials say they would likely yield to the federal government and not require labels there.


Aristoff Handles With Care
BURBANK, CA - At the Aristoff Tabacalera cigar factory in San Pedro Macoris, Dominican Republic, the company's 75 cigar rollers begin their work day with a professional manicure. Since the company specializes in figurado shapes, Aristoff managers felt they'd be wise to treat the torcedors' hands like the valuable assets they are. The procedure is one of two new two policies instituted to elevate product quality to the highest standards.

"Aristoff values craftsmen's hands as precision tools," comments Bill Skelley, vice president of marketing. "We take these measures to gain maximum quality in our cigars." The company's rollers also receive a therapeutic hand massage during breaks, helping to reduce fatigue and tension. In addition, Aristoff mechanically draw tests each cigar to ensure consistency.


CORPORATE BRIEFS
  • U.S. Cigar Sales, Inc., Miami, Fla., has appointed Tom Baker as director of marketing. Baker has previously held positions with American Tobacco, Brown & Williamson, and Davidoff of Geneva.

  • Niche Resources, Scottsdale, Ariz., has named Gregory George the director of business development. George brings ten years of experience in the cigar and clean air industry to Niche Resources, where his main focus will be on expanding the company's on-line business.

  • Grand Havana Enterprises, Inc., Los Angeles, has named Stanley Shuster as c.e.o. and chairman of the company, following the resignation of Harry Shuster. Stanley has been executive vice president and a director of the company for several years and was primarily responsible for establishment, design, and operations of the Grand Havana cigar lounges in Beverly Hills and New York. Both facilities have been under his management since their inception.

  • Tabacalera, S.A., Miami, Fla., has named Donald C. (Bo) Young as its vice president of marketing. Peter Strauss, director of U.S. operations, announced the promotion. Formerly the director of marketing, Young will be responsible for overseeing all marketing, advertising, and promotion of new products - including Romeo y Julieta, Saint Luis Rey, Quintero, VegaFina, and VegaFina Natural - to U.S. retailers and consumers for Tabacalera's premium and mass-market cigar divisions.

    "We are extremely pleased to have Bo in this critical position. The first premium cigar company in the U.S. to develop a portfolio of brands around a manufacturer's umbrella, Tabacalera gears its products toward a diverse consumer audience. Bo's challenge is to design strategies that reach out to this range of potential customers," said Strauss.

  • Swedish Match North America, Inc., Richmond, Va., has named Lennart Freeman as president, and Harold Price to vice president, sales and marketing.

  • Smokey Mountain Chew , Darien, Conn., has named Robert Bantle as chairman, David Savoca as president, and Richard Hunsberger to vice president, sales.

  • The Retail Tobacco Dealers of America (RTDA), Cockeysville, Md., has elected officers to serve for the upcoming year. The new officers are: Col. Ralph Rumbo, president, (The Humidor, Inc.; San Antonio, TX); Chuck Levi, first vice president, (Iwan Ries & Co., Chicago, IL); Linda K. Squires, second vice president, (The Squire, Santa Rosa, CA); Eugene F. Duhon, secretary, (Stag Tobacconist, Phoenix, AZ); and David Berkebile, treasurer, (Georgetown Tobacco & Pipe), Washington, D.C.

    SMOKESHOP - August/September 99

  • SMOKE Magazine - Cigars, Pipes, and life's other desires