Attendance at the Retail Tobacco Dealers of America's annual trade show jumped from 4,100 in 1996 to 5,600 in 1997. Big-name makers also have ramped up, slowing demand for unknown products. Now, smoke shops, stuck with unsold no-name cigars, are ''cleaning their humidors of these upstart new companies,'' says Ted Clark, executive director of the Tobacconists' Assn. Just make more,'' says Samet. Like many consumer companies, the small business is essentially a marketer.
Distribution is key.
So the tiny upstart tried a tactic pioneered by a bigger rival. Sales improved, but the move alienated some traditional tobacco retailers, and some now refuse to carry UST brands. Despite the risks, the strategy made sense for a small outfit like Tabacon as a way to gain wide distribution without massive spending. Since May, the company has wooed 22 liquor distributors in 20 states with its broad product line, display humidors, training for sales reps, and national ad campaign. But rivals are also partnering with the liquor trade.