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CAJoe

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Has anyone else been following what has been going on with the PCA (formerly IPCPR) lately? the 4 largest cigar companies have pulled out while many still have not put down deposits for their spots. It seems a day of reckoning is coming for PCA and it is a lose/lose situation for everyone. Halfwheel wrote up a good article about it with links to DE's letter about why they are not going as well as Famous.

 

Boudie

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Yea, I posted some emails I received earlier in the week talking about this. Don't know enough to have an educated opinion but I think these problems are a result of the changing market and legal environment. I'm sure somebody is sitting down doing the math and saying we can spend the money more wisely. There are lots of big personalities involved with lots of different opinions about how things should be run which is always tough in a boy's club.
 
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Skip Martin from RoMa Craft posted on FB.

As I look back on the last twenty-five years and my time involved in the premium cigar industry, there are a few moments that stand out more than all of the others.

I vividly recall the experience of purchasing my first cigar at Emerson’s Norfolk in the Military Circle mall, a large Flor de Oliva, and walking through the mall smoking it proudly. I remember walking onto the RTDA trade show floor for the first time, as a consumer in Nashville, and how awe inspiring it was. My first Big Smoke in Washington DC was an amazing experience. My first trip to a cigar factory, receiving our first shipment of CroMagnon in Austin and the day we rolled our first cigar in my own factory are also indelible memories.

Of all of these milestones, one stands out more than the others and that is the day I put the RTDA (Retail Tobacco Dealers Association) sticker on the window of Hava Cigar Shop and Lounge in Galveston, Texas. I remember how proud I felt to be a part of this professional organization, and what this signified in terms of the faith placed in us to represent ourselves and our peers in the premium cigar industry.

Since that day in 2006, the RTDA became the IPCPR, and then later, the PCA. I’m a manufacturer and brand owner now, an exhibitor for the last eight years...but the 88th International Trade Show and Convention held this July will be my 15th to attend either as a consumer, a member of the media, a retailer, a brand owner or manufacturer.

I have seen the trade show in it’s growth transition during the boom...adjusting to demand at its peak, and sadly now struggling in its decline. I have seen the trade organization transition from a singular focus on the administration of the trade show, to an organization equally focused on addressing state and local challenges facing retailers, to an organization whose primary focus has been spearheading lobbying and legal efforts to win legislative relief for the industry as a whole.

There is no question that we as a group are at a crossroads where the actions of its leadership and members will determine the future viability of the organization, and perhaps the future of the premium cigar industry. As the leader of a company within this industry, I personally feel a certain amount of responsibility to do my part for the organization I feel best represents my interests, and the interests of my company, our employees, our retail partners and our end consumers.

The pragmatic reality, in my mind, is that the industry trade show model that worked well for us for more than eighty years will not work for us going forward. While we have been fortunate to be one of the busier teams at each show we have attended, there has been a measurable decline in interest and attendance among the retailers who are the focus of the show. A shift in the buying patterns of our retail partners, and the skyrocketing costs of exhibition have almost entirely erased the return on investment companies like ours have historically used to justify the annual expense of exhibiting at the show. As a sales and marketing expenditure, it is untenable.

However, it is more than that. The PCA depends on the profits from the trade show to fuel the aforementioned legal and legislative efforts. While it seems to have been lost in the noise of the recent announcement of our four largest exhibitors deciding not to participate in this year’s show, there was on the very same day a significant appeal for relief from the pending Substantial Equivalence deadline filed on our behalf based on the FDA’s recent announcement regarding their enforcement priorities. These types of activities happen almost every day, they are almost entirely funded by the various members of the PCA with trade show revenues, led by the professional staff of the PCA whose payrolls depend on trade show revenue and executed by firms paid primarily from trade show revenues.

As this is the case, I feel it would be irresponsible for us, at this time, to abandon our participation and contribution to the trade show that funds these efforts despite our concerns related to the poor execution of last year’s plan to increase consumer involvement and board governance.

RoMa Craft Tobac will be attending the 2020 PCA International Trade Show and Convention in July. We have decided to reduce our expenditures with a smaller, less complicated exhibit. We have also cancelled our plans for our annual party this year to decrease costs. Instead, we will be hosting an event in May for our retail partners and consumers to celebrate our 10th Anniversary at our headquarters in Austin, Texas.

We are very grateful to the PCA for all of their efforts to help us save our industry. It is out of respect for the organization, my personal sense of pride and loyalty as a member, and this gratitude that has driven this decision after a great deal of thought and discussion.

However, we must collectively address the real issues that exist with the economic viability of the trade show, and the organization’s governance, before the barriers become too great for loyalty and gratitude to overcome.

We look forward to seeing you in Las Vegas.

Skip Martin
RoMa Craft Tobac



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ChuckMejia

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Cigar sales online will prosper

cigar shops will begin to fade

Private cigar clubs with no sales will boom, specially with 24:7 access and byob

These conventions will fade

Plus, last thing people want to do in Vegas is smoking cigars in a huge convention room full of people who will be irrelevant next year
 

Boudie

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When they start requiring US based on-line companies to pay state sin taxes then retail and online will be a lot more competitive with each other. It's just a matter of time.
 
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Skip Martin from RoMa Craft posted on FB.

As I look back on the last twenty-five years and my time involved in the premium cigar industry, there are a few moments that stand out more than all of the others.

I vividly recall the experience of purchasing my first cigar at Emerson’s Norfolk in the Military Circle mall, a large Flor de Oliva, and walking through the mall smoking it proudly. I remember walking onto the RTDA trade show floor for the first time, as a consumer in Nashville, and how awe inspiring it was. My first Big Smoke in Washington DC was an amazing experience. My first trip to a cigar factory, receiving our first shipment of CroMagnon in Austin and the day we rolled our first cigar in my own factory are also indelible memories.

Of all of these milestones, one stands out more than the others and that is the day I put the RTDA (Retail Tobacco Dealers Association) sticker on the window of Hava Cigar Shop and Lounge in Galveston, Texas. I remember how proud I felt to be a part of this professional organization, and what this signified in terms of the faith placed in us to represent ourselves and our peers in the premium cigar industry.

Since that day in 2006, the RTDA became the IPCPR, and then later, the PCA. I’m a manufacturer and brand owner now, an exhibitor for the last eight years...but the 88th International Trade Show and Convention held this July will be my 15th to attend either as a consumer, a member of the media, a retailer, a brand owner or manufacturer.

I have seen the trade show in it’s growth transition during the boom...adjusting to demand at its peak, and sadly now struggling in its decline. I have seen the trade organization transition from a singular focus on the administration of the trade show, to an organization equally focused on addressing state and local challenges facing retailers, to an organization whose primary focus has been spearheading lobbying and legal efforts to win legislative relief for the industry as a whole.

There is no question that we as a group are at a crossroads where the actions of its leadership and members will determine the future viability of the organization, and perhaps the future of the premium cigar industry. As the leader of a company within this industry, I personally feel a certain amount of responsibility to do my part for the organization I feel best represents my interests, and the interests of my company, our employees, our retail partners and our end consumers.

The pragmatic reality, in my mind, is that the industry trade show model that worked well for us for more than eighty years will not work for us going forward. While we have been fortunate to be one of the busier teams at each show we have attended, there has been a measurable decline in interest and attendance among the retailers who are the focus of the show. A shift in the buying patterns of our retail partners, and the skyrocketing costs of exhibition have almost entirely erased the return on investment companies like ours have historically used to justify the annual expense of exhibiting at the show. As a sales and marketing expenditure, it is untenable.

However, it is more than that. The PCA depends on the profits from the trade show to fuel the aforementioned legal and legislative efforts. While it seems to have been lost in the noise of the recent announcement of our four largest exhibitors deciding not to participate in this year’s show, there was on the very same day a significant appeal for relief from the pending Substantial Equivalence deadline filed on our behalf based on the FDA’s recent announcement regarding their enforcement priorities. These types of activities happen almost every day, they are almost entirely funded by the various members of the PCA with trade show revenues, led by the professional staff of the PCA whose payrolls depend on trade show revenue and executed by firms paid primarily from trade show revenues.

As this is the case, I feel it would be irresponsible for us, at this time, to abandon our participation and contribution to the trade show that funds these efforts despite our concerns related to the poor execution of last year’s plan to increase consumer involvement and board governance.

RoMa Craft Tobac will be attending the 2020 PCA International Trade Show and Convention in July. We have decided to reduce our expenditures with a smaller, less complicated exhibit. We have also cancelled our plans for our annual party this year to decrease costs. Instead, we will be hosting an event in May for our retail partners and consumers to celebrate our 10th Anniversary at our headquarters in Austin, Texas.

We are very grateful to the PCA for all of their efforts to help us save our industry. It is out of respect for the organization, my personal sense of pride and loyalty as a member, and this gratitude that has driven this decision after a great deal of thought and discussion.

However, we must collectively address the real issues that exist with the economic viability of the trade show, and the organization’s governance, before the barriers become too great for loyalty and gratitude to overcome.

We look forward to seeing you in Las Vegas.

Skip Martin
RoMa Craft Tobac



Sent from my iPhone using Tapatalk
you own a factory?
 

CigarGavin

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He posted a letter from one of the owners of Roma Craft.
Maybe he is skip checking out the ole forums to see how the brand is trending

To add in regards to additional intervention; it’s amazing to see the growth of the “out of town” websites and suppliers. 10 years ago it was stuff discussed when we herfed and met up and still 1 out of 3 people thought it was bullshit. Now (like mentioned) you can get whatever you want and avoid any tax, most of the time cheaper as well.

If it doesn’t change the show (and B&M’s) will be a thing of the past.


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Clint

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I dunno...Some people like to touch and feel real merchandise as opposed to online pictures. Although in the minority, some people still get newspapers for the same reason.
I think the popularity and attendance will certainly drop for PCA, but may gradually (key word) come back as they figure out their strategies.
The TPE Show sign ups are huge for this year. It is a B2B show, but it has been historically well attended and is trending up over the past few years.
 

ChuckMejia

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I dunno...Some people like to touch and feel real merchandise as opposed to online pictures. Although in the minority, some people still get newspapers for the same reason.
I think the popularity and attendance will certainly drop for PCA, but may gradually (key word) come back as they figure out their strategies.
The TPE Show sign ups are huge for this year. It is a B2B show, but it has been historically well attended and is trending up over the past few years.
TPE seems a bit of a different strategy

but cigar con will work if they allow fan boys to raid it

but newspapers gotta do, save the trees.
 

Hoshneer

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TPE is the future for modern shops I firmly believe that. It literally has everything I need and costs us about half for the trip. As far as taxing goes I don't think anyone has charged tobacco tax online just state sales tax. It's the tobacco taxes that eat up our revenue.
 

CAJoe

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TPE is the future for modern shops I firmly believe that. It literally has everything I need and costs us about half for the trip. As far as taxing goes I don't think anyone has charged tobacco tax online just state sales tax. It's the tobacco taxes that eat up our revenue.
I can see the TPE becoming more of the go to for shops. It is more business rather then social. Go in for a day, hit what you need, and then get back to your shop. They have also moved with the times while PCA seems to be mired in the past and refuses to change.
 

Clint

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And recently there have been more new cigar releases at TPE...Rough count is 9 releases, with others rumored to be pending. I feel this will only increase with the path PCA is charting.
 

Clint

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TPE is the future for modern shops I firmly believe that. It literally has everything I need and costs us about half for the trip. As far as taxing goes I don't think anyone has charged tobacco tax online just state sales tax. It's the tobacco taxes that eat up our revenue.
See you there,buddy! :)
 
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