PCA Magazine Fall 2019

PREMIUMCIGARS.ORG SEPTEMBER-OCTOBER 2019 | PCA The Magazine 17 so that we can work to address your concerns. Since our announcement and the subsequent feedback, we recognized that the timing for CigarCon in 2020 was not realistic for what it was we are trying to accomplish. With that mind, there are a fewmain points that we’d like to address and clarify—with the caveat that this initiative will continue to evolve and grow as we get into the finer details. MEMBER INPUT We’re embarking on a significant change to our association’s committee structure to encouragemore participation fromour membership. In addition to new committees on education and communications, we have created a newCigarCon subcommittee that will be populated by representatives from across all classes of retailer andmanufacturer membership and will focus exclusively on this event. These new committees and subcommittees are a way for us to start empoweringmore of our membership to get involved in the process and, specifically with CigarCon, offer us a broad range of viewpoints on the best way to develop the event so that it benefits everyone. ADDING VALUE We recognize CigarCon is something totally different for the industry. We had numerous questions on the benefits of CigarCon for retailers andmanufacturers. For retailers, we see this as an opportunity to enhance customer loyalty, convert special orders into sales and cultivate better relationships with themanufacturers. Just as retailers solidify and grow customer relationships when joining themon factory tours or during store events, CigarCon will be the perfect venue to enhance those relationships. Retailers will also have the opportunity to get insights on their customers’ wants. A great example given by one of our members is giving your customers an opportunity to see products youmay not normally stock, like a high-end humidor. Because of the cost, it’s not a product you regularly keep on your shelf, but if a customer sees it and falls in love with it, you can special-order the humidor during the show and have a high-value sale waiting for you after the show. For themanufacturers, we see this as a unique opportunity to highlight their brands in an environment consumers can’t find anywhere else in the world. The time andmoneymanufacturers have dedicated to create their booths is remarkable, and we want to give them the opportunity to highlight their brand in this special way to consumers. In addition, manufacturers will have an opportunity to connect with retailers who don’t normally visit their booth because they don’t carry themanufacturer’s products. So we believe there are a number of opportunities through CigarCon to connect retailers andmanufacturers in newways. Lastly, we believe this event will showcase the very best of our industry and differentiate us fromother nicotine products. A critical component of our legal and legislative agenda is educating lawmakers on the unique and vastly different role premium cigars have in themarketplace. Sharing that uniqueness with consumers will help spread the word to lawmakers at every level of government. CIGAR DISTRIBUTION We heard fromnumerous manufacturers that want to be part of the event but they don’t want the responsibility or expectation of giving away cigars. We never intended to put the cost burden onto the exhibitors. Rather, our model is to reimburse the exhibitors for that cost. We also never planned on this event being a “trick or treat” at the booths where consumers would expect to walk away with over 100 cigars. The goal has always been about how to connect the consumer to the cigar industry and the broader culture in ways that don’t exist outside of this unique event. We expect further discussions within our subcommittee and with relevant stakeholders tomake it as equitable as possible for all exhibitors involved in the event. LOGISTICS Many of you raised concerns about how the day would be structured and the potential loss of time for show floor business. CigarCon is not, and will never be, an event that will disrupt our annual show. We have the premier trade show in our industry each year and we would never do anything to jeopardize the educational, networking and business opportunities the show provides. In our current show format, retailers have 25 hours over three and a half days to conduct business. Themodel that we’re proposingwith CigarCon offers 24 hours on the showfloor and if you sign up for the early bird special, the total showfloor hours are back to 25. We have yet to make a final decision on what day CigarCon will be scheduled or the exact format. Our intent is to schedule a day of activities that thoroughly engages your customers and allows you the opportunity to convert the feedback you receive into actual sales. Ultimately, the format we develop for CigarCon will not only protect our fundamental show principles but will enhance them. SECURITY Security will always be a high priority. We are already looking at increasing security on the show floor and utilizing enhanced technologies (used by the NFL, Home Depot, Best Buy) that will provide us with the highest level of security to control entry onto the show floor as well as protect the attendees’ information. ATTENDANCE & COST We initially estimated attendance in the 2,000–4,500 range. While several entry fee rumors have been reported, we have not yet determined the fee structure, as the design and investment into the event will influence what exactly those will be. The subcommittee will work to develop a structure that takes into account single store owners, multiple store owners and the number of customers that attend. CigarCon is a product of our changing environment and we believe it will exemplify PCA’s goal in becoming a “Center of Excellence” for the premium cigar and pipe industry. Done right, it will fortify your relationships with customers, help us increase the overall awareness of our industry, and strengthen our influence on future legislation and regulation. All we ask is that you give this idea a chance, continue to share with us your constructive thoughts and allow the board of directors and the newly formed CigarCon subcommittee to address the concerns you’ve expressed so we can develop a day that will be a win for everyone. We will continue to update you in this publication and our newwebsite premiumcigars.org as more CigarCon details develop. CIGARCON IS AN OPPORTUNITY FOR ALL OF US TO DEVELOP DEEPER TIES TO THE CONSUMER WHILE CREATING A GRASSROOTS MOVEMENT (FINANCIALLY AND THROUGH ADVOCACY) TO HELP PROTECT OUR INDUSTRY. C I G A R C O N D E C O N S T R U C T E D