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June/July
2002

TRENDS AND TRENDSETTERS IN SPECIALTY TOBACCO RETAILING
Dunhill Relocates Manhattan Retail Shop

New York Alfred Dunhill Ltd. has moved its New York City retail store, previously located on Park Avenue, into a newly renovated site on Fifth Avenue.

The high-end men's store, located in what used to be a Coca-Cola retail store in the Coca-Cola Building, opened on March 2 and features a sleek, luxurious design. It is located in the heart of Manhattan's prestige retailing district.

The first floor showcases clothing and luxury accessories, while the second floor is dedicated to club services including a walk-in humidor and a members-only smoking lounge. While the well-stocked humidor is available to all customers, access to the lounge requires an annual club membership which costs $1,000, as well as a minimum of $5,000 of Dunhill purchases annually. Humidified cigar lockers are one perk of membership, as is the ability to reserve the lounge for personal use.


Crisp New Look for the Flagship Davidoff of Geneva Shop

Geneva - Davidoff of Geneva, the specialty tobacco shop established by Zino Davidoff on Geneva's Rue de Rive in 1968, has reopened following extensive renovation work that lasted three months. The site was stripped to bare walls and completely rebuilt to create an inviting shop bathed in light that "combines modern elegance and classical charm," says the company. The goal was to create a place where customers would feel perfectly at ease, said Dr. Ernst Schneider, chairman of Oettinger-Davidoff Group. A ribbon cutting ceremony was held on April 9, 2002.

More space is now available to consumers, thanks to a skillful reconfiguration of the shop's layout. The interior décor of pear wood, light-colored flooring, and the generous use of glass create an elegant atmosphere. The shop's comprehensive range of merchandise, with special sections for cigars, accessories, and pipes, is clearly presented. The heart of the shop is the humidor room, visible from the street and appointed with a refined parquet floor. In addition to Davidoff cigars, the humidor is also heavily stocked with top premium cigars from the Dominican Republic, Cuba, Brazil, Honduras, and Nicaragua. A comfortable seating area is available for visitors.

While the Davidoff brand was built on first-class cigars and accessories, the shop also stocks perfumes, ties, spectacles, leather goods, writing utensils, cigarettes, and fine cognacs.

A total of nine employees work at Davidoff's Geneva shop under the leadership of manager Thomas Mathys.


Oneida Kiosks for Tax-Free Cigarette Sales
The central New York tribe Oneida Indian Nation is placing kiosks in N.Y. convenience stores to allow customers to order tax-free cigarettes electronically.

The tribe installed the first kiosk on April 2, one day before New York state increased its cigarette tax by 39 cents to a nation-high $1.50 per pack. Smokers can save up to $20 in taxes per carton at the kiosks.

The Oneidas will initially install kiosks in six Buffalo-area Yellow Goose convenience stores, said Mark Sidebottom, president of the 33-store chain. If the kiosks are successful, they will be installed in the remaining stores, he said.

State officials quickly cited potential legal problems, since kiosks could permit minors to buy cigarettes illegally. Also unclear is whether the kiosks violate state tax laws by using a non-Indian-owned retail outlet as a conduit for selling tax-free cigarettes.

Sidebottom said store clerks have been instructed to check the age of kiosk users to prevent minors from ordering. Oneida spokesman Jerry Reed said a six-carton minimum order and the required use of a credit card "will discourage teen-agers from using the kiosks."

The kiosks use touch-screen computers to allow customers to order most major cigarette brands tax-free from the Oneidas' Internet-based tobacco company near Utica. Cigarettes sold by Indian nations are not subject to state taxes.


CALL FOR ENTRIES
Fuente's 2002 Retailer Display Contest

Tampa, FL - Tabacalera A. Fuente y Cia has added new incentives to its 2002 Arturo Fuente Display Contest, now in its 12th consecutive year. Four grand prize winners and their spouses will each be awarded an expense-paid five day/four night vacation in the Dominican Republic.

The trip, which will take place early in 2003, will include round-trip airfare, rooms, food, and entertainment at the island's foremost resort hotels. Sightseeing will include visits to the Fuente factories and plantation, Chateau de la Fuente.

In addition, 25 runners-up will each receive a wrist watch, and all entrants abiding by the contest rules will receive an Arturo Fuente denim shirt. Each participating retailer will also have the opportunity to purchase up to five boxes of the company's new Flor Fina 8-5-8 Sun Grown cigars.

To encourage more retailers to build creative displays, company president Carlos Fuente, Jr. says the new rules allow runners-up to purchase up to five boxes of the all-new Hemingway Classic Sun Grown cigars. Grand prize winners will be eligible to purchase up to ten boxes of both brands.

Entrants must be bona fide cigar retailers and erect an in-store or window display devoted solely to Arturo Fuente and/or Montesino cigars. A picture of the display, which must be maintained for at least 30 days, must be submitted by July 31, 2002 to the contest judges. Contact Fuente Newman Cigars, (813) 248-2124.


SMOKESHOP - June/July, 2002