ITC: On a roll

ITC’s cigar brand Armenteros, which, until now, was retailed through hotels, restaurants and cafés, will now be showcased at the Cigar Republic store in ITC Maurya, New Delhi. Luxury brand management company Kreative Marketing has set up the first retail store for Armenteros. Kajal Malhotra, founder, Kreative Marketing, who has over five years of experience in cigar retail, does not rule out the possibility of more such stores in the future.

The store interiors have been designed keeping in mind the well-heeled audience. A walk-in humidor that maintains temperature appropriate for storage, an exhaustive library of cigar literature and personal lockers allowing customers to stock their cigars in a temperature controlled environment are some features aimed to build loyalty among connoisseurs.

The retail initiative comes a year after ITC launched Armenteros, sourced from the Dominican Republic, in the cities of Mumbai, Delhi and Kolkata. For ITC, pushing premium products like cigars is a natural extension of its tobacco business, which contributes close to 65 per cent to its turnover. Of course, it will not make a significant impact on its bottom line as the market is still small.

The retail concept is not the first of its kind. Chetan Seth, founder of Chemon Group has a concept store, the Cingari Tasting Room, at Intercontinental The Lalit in Mumbai. Seth also has three stores in Mumbai, Delhi and Hyderabad, and has a few outlets at some international airports, where he retails the premium hand-rolled Cuban cigars sourced from Cuban state tobacco company Habanos.

“About 7.5 million cigars are sold in India every year and the market is valued at Rs 25 crore,” estimates Arun Joshi, vice-president (cigars), KK Modi Group, which owns Godfrey Phillips India. The Indian market is dominated by imported brands; Indian cigar brands like London Calling and Black Tiger from Trichy have not made much head way as they are considered harsh.

Experts say like fine dining restaurants, cigar lounges will sprout as demand picks up. “A plush retail environment for cigars is crucial because unlike cigarettes, cigars are usually savored like a drink,” notes Seth. Seth adds companies could also look at making distribution mainstream. However, adoption will be slow as cigar prices are still frightfully high. Imported cigars cost anywhere between Rs 450 to Rs 2,000 per piece, compared to local brands from Trichy that are cheaper and retail for about Rs 550 for a set of 25.