
Thomas Briant is executive director of the National Association of Tobacco Outlets. NATO’s toll free number is (866) 869-8888 and the association’s Web site address is www.natocentral.org.
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[ NATO NEWS ]
Survey says...
Any perception in the industry that tobacco outlet stores are primarily retailers of cigarettes should be put to rest with the data collected from NATO’s first-ever cigar survey. Based on responses from more than half of NATO’s retail members, the survey tells the following story:
- 91 percent of surveyed stores sell premium cigars.
- 98 percent of surveyed stores sell domestic cigars.
- 48 percent of stores that sell premium cigars have walk-in humidors.
- 58 percent of all stores surveyed have wall-case humidors.
According to the responses, numerous brands of premium cigars are offered for sale, including cigars manufactured by Altadis, U.S.A.; Arturo Fuente Cigar Company; Ashton; CAO International; Caribe Imported Cigars; Cusano Cigars/Dom Rey Cigars; Davidoff of Geneva; Drew Estate; General Cigar; Graycliff Cigar Company; Havana Honeys; Heavenly Cigar Company; Indian Tabac Cigar Company/Rocky Patel Cigar Company; Inter-Continental Cigar Company; J.C. Newman Cigar Company; Nat Sherman; Padron Cigars; Santa Clara; Torano Cigars; and Victor Sinclair Cigars.
Similarly, NATO retail members sell a variety of domestic cigars manufactured by Altadis, U.S.A., John Middleton, Inc., Lane, Ltd. and Swisher International.
The commitment of NATO members to the premium cigar segment is also demonstrated by the size of walk-in humidors. Most walk-in humidors are larger than 100 square feet with many several hundred square feet in size, up to 2,000 square feet. To augment display space, or in lieu of a walk-in humidor, many retailers have installed wall-case humidors.
One of the most important conclusions that can be made is that, for all intents and purposes, the line between “tobacco outlets” and “tobacconists” is virtually non-existent. NATO members are true tobacco retailers offering their customers a broad range of tobacco products, including many brands of premium and domestic cigars. This is why an increasing number of cigar manufacturers have become members of NATO and support the association’s legislative programs.
2006 NATO Expo
With the 2006 NATO Gala Dinner and NATO Expo several weeks away, the NATO staff looks forward to seeing all NATO members at this important annual event. For the first time, NATO will host a semi-formal Gala Dinner on the evening of Monday, March 27, at the Flamingo Hotel Ballroom in Las Vegas. The evening will serve as an opportunity for the entire tobacco industry to celebrate the fifth anniversary of the National Association of Tobacco Outlets. Then, members can take in retail seminars and the trade show floor on March 28 and 29, and save money with exclusive show specials for NATO members only.
Legislative outlook
The 2006 legislative year is picking up where the 2005 state legislative sessions left off. A number of bills have been introduced to increase cigarette and tobacco taxes, increase the legal age to buy and use tobacco products and ban smoking in hospitality establishments. Moreover, a new strategy being used by anti-tobacco advocates is to gather signatures on petitions to place a tobacco issue on a statewide general election ballot.
For the general election in November 2006, ballot initiatives in Arizona and California to increase the cigarette tax, in Missouri to raise the cigarette and OTP tax rates, and in Ohio to adopt a statewide smoking ban are being pursued.
Rather than allow such issues to be debated in the halls of state capitols and on the floor of state legislatures, the anti-tobacco advocates are essentially circumventing the legislative process and placing tobacco issues on the ballot. Since approximately 70 percent of eligible voters are supportive of anti-tobacco initiatives, mainly because they do not buy or use tobacco products, NATO and its members are at a disadvantage in stopping these ballot initiatives from being adopted by voters.
Nevertheless, NATO has initiated petition drives in Arizona, California, Missouri and Ohio aimed at informing legislators about the unfairness of these ballot questions.
To Join NATO
For retailers that desire to become a member of NATO, please download and complete the application form and mail or fax it to NATO’s offices. |