El Presidente Posted January 19, 2011 Share Posted January 19, 2011 Rich and trendy puff up cigar sales in India By Priyanka Dasgupta Brahma Jan 19 2011 , Kolkata http://www.mydigitalfc.com/news/rich-and-t...sales-india-763 Cigars, their popularity is growing among the affluent. Brands like Altadis and Armenteros are flying off the shelves, both in the grey market as well as organised retail channels. No wonder, industry pundits are expecting the category to show a CAGR of 24 per cent between 2009 and 2014. According to research agency Datamonitor, the overall cigar and cigarillo category grew 34.6 per cent during 2008-09. During 2004-09, the category showed a CAGR of 33.3 per cent. Premium cigars, patronised by a new set of luxury smokers, have carved out a new tobacco segment which has become a Rs 150-crore business in the last five years. Being a luxury product, the primary consumers are the elite and the growing upper class. The product has a growing presence in metros like Delhi, Mumbai, Kolkata, Bangalore and even Hyderabad. “The trend is yet to catch on in tier-II cities. But if it becomes common in the metros, it is likely that the rich and influential in tier-II cities too will start picking it up,” said Gaurav Manchanda, consumer market analyst at Datamonitor India. Akbar Khaliff, whose family has been in the cigar business in Kolkata’s posh Park Street for generations, said his clientele includes high-flying executives, businessmen and affluent teenagers. “We know which brands they prefer and we source them in advance. They also place advance orders for parties and marriages. A significant portion of the sales is contributed by imported cigar brands,” he said. A packet of top-grade cigar can cost anywhere between Rs 500 and Rs 2,000. “Brands in the higher price bracket, catering to demand from upper-income consumers, are mostly imported. Brand names are a major factor driving sales of the cigars,” Manchanda said. The country’s largest cigarette maker, ITC, has an agreement for distribution of Armenteros brand cigars, manufactured by La Auro, a Dominican Republic firm. Another big player, Godfrey Phillips India (GPI) imports and markets Altadis cigars. Of late, it has also been pushing the distribution of Café Crème cigars and Villiger cigars. The company has increased its cigar distribution to over 25,000 retail outlets nationally while expanding its portfolio during the period.Philles and Don Diego cigar brands too have been increasing their market share over the past few years. Brands apart, cigars are also imported through standard channels by private distributors. Even local manufactures are gearing up production to cater to demand at lower price points. Manchanda said, there have been cigar launches across several price points. “In contrast to cigarettes, cigar business is one of the most exciting ones to be in. As the trend catches on, the market will see a plethora of lower-priced cigars targeted at wealthy consumers,” he said. Datamonitor’s research also shows that due to the growing popularity of the category, around two-third of the product distribution is done through modern retail outlets like supermarkets and hypermarkets. by 2012, Retailers expect to sell 100 million pieces per annum . Hotels, fine dining restaurants and clubs are the other key distribution channels for this product. Link to comment Share on other sites More sharing options...
tmac77 Posted January 20, 2011 Share Posted January 20, 2011 I am not surpised by the increase in cigar sales and demand in ermerging markets. That is where of alot of people, much smarter than I, are investing thier money Link to comment Share on other sites More sharing options...
Fuzz Posted January 20, 2011 Share Posted January 20, 2011 Cafe Creme?! Link to comment Share on other sites More sharing options...
CanuckSARTech Posted January 20, 2011 Share Posted January 20, 2011 Cafe Creme?! My thought also - "premium"?? LOL. Hey, but doesn't Piggy like those?? Link to comment Share on other sites More sharing options...
aavkk Posted January 20, 2011 Share Posted January 20, 2011 Can't say I'm surprised by this- Delhi is infinitely more hectic than anywhere else I have ever been. The place is a complete circus in which 2 days there took at least 2 weeks off my life... and I'm easygoing. I would definitely need a cigar after battling Delhi traffic home from work everyday. Link to comment Share on other sites More sharing options...
thechenman Posted January 20, 2011 Share Posted January 20, 2011 Odd that there is no mention of Cuban cigars... Link to comment Share on other sites More sharing options...
bassman Posted January 20, 2011 Share Posted January 20, 2011 Phillies? Only people who smoke them here hollow them out & refill them with weed! Link to comment Share on other sites More sharing options...
PigFish Posted January 20, 2011 Share Posted January 20, 2011 My thought also - "premium"?? LOL. Hey, but doesn't Piggy like those?? Cafe Creme and a Nutty post... Man life don't get no betta'! Rob, I thought you were gonna' stock these for me! - Link to comment Share on other sites More sharing options...
Rehman Posted January 21, 2011 Share Posted January 21, 2011 I like a cafe creme with a good cigar. Link to comment Share on other sites More sharing options...
CanuckSARTech Posted January 21, 2011 Share Posted January 21, 2011 Cafe Creme and a Nutty post... Man life don't get no betta'!Rob, I thought you were gonna' stock these for me! - A good Lancero with a Zacapa 23??? Link to comment Share on other sites More sharing options...
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