Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: https://read.dmtmag.com/i/777147
www.beveragedynamics.com Digital Edition Exclusive 2017• Beverage Dynamics 4 Q&A: CIGAR SALES AT CORK LIQUORS by Kyle Swartz Cigar sales are a focus for Cork Liquors in Indiana, our 2016 Retailer Of The Year. The 12-store chain has countertop humidors (containing 6 to 8 boxes), cabinet humidors (15 to 18) and a walk-in humidor in its main store with 100 boxes. We recently spoke with Cork Liquors owner Warren Scheidt about the cigar side of his business. Beverage Dynamics: What are your best sellers? Warren Scheidt: At our main store those would be Arturo Fuente, Romeo y Julieta and Montesino (ranging from $6-8) and Rocky Patel (around $10). BD: What types of customers buy premium cigars? WS: People who are more knowledgeable about the product. They want the selec- tion, and they want the temperature-controlled humidor. They're brand loyal but also want to try something else if it catches their eye. That's why cigar packaging is so important. And that's why myself and a few other employees at my store stay educated about cigars. I read the cigar magazines and watch the videos. The cigar whole- saler I work with I trust a lot. Anytime I have a cigar that's slowed down in sales I call her up for recommendations about what's hot, regionally and nationwide. BD: How do you pair cigars with high-end liquor? WS: Typically by price. If someone's buying a $90 bourbon, I point them towards something like a Rocky Patel. They wouldn't be happy with a $5 cigar. I like to see what whiskey, bourbon or Scotch they're buying before I recommend a cigar, and not the other way around. About 10% of people buying premium whiskey also buy cigars. BD: What state laws affect cigar sales? WS: In Indiana you cannot have shelf service for cigars. You have to keep them locked up at all times. If someone wants to go into our walk-in humidor, we have to unlock it and then be in there with them. This newer law hasn't hurt us terribly, but it does affect the customer experi- ence. They want to be able to pick up and smell and hold a cigar. They want to have a closer association with it before they buy it. BD: What's the key for selling premium cigars? WS: Just like with premium wine or spirits, you have to know your product and work it. Pay personal attention to merchandising them. They have to be laid out correctly. If you just buy boxes and throw them out there, you're not going to do well. "We hope the cigar business will continue to grow in all of our stores and remain a solid compli- mentary purchase for our customers," Johnson says. Spreckels hopes that the cigar business at The Fridge Liquor increases as people continue to learn more about pairings. "The cigars that are out now that have been dipped or infused with certain bourbons or rums have become more popular and are helping people be more conscious of those sorts of pairings," Spre- ckels says. "Now, with the introduction of Cuban cigars coming down the pipe, this could really help sales and spark curiosity in a lot of us who might have only heard the myth of how amazing those cigars are." BD MAURA KELLER is a Minneapolis-based writer and ed- itor. She writes for dozens of publications on a variety of business-related topics. When not writing, Maura serves as executive director of the literacy nonprofit, Read Indeed. " Now, with the introduction of Cuban cigars coming down the pipe, this could really help sales and spark curiosity. "