Marco V Cigars Co. Q3 Review/ Communication

Marco V Cigars had its best 3 months of business so far. Here are some highlights from our third quarter:

- Marco V Cigars had a number of successful events at premium tobacconists, festivals, and other venues.
- Marco V Cigars attended the IPCPR in New Orleans.
- Marco V Cigars Co. had a great write up in the Pioneer Press outlining the creation of Marco V Cigars Co.
- Marco V Cigars launched a new program that empowers the B&M’s.
- Marco V Cigars has picked up another 8 retail locations (with many more in process)
- Marco V Cigars launched the foundation of Marco V Attire.

As humidors are crowded and the industry is saturated with great cigars, reputable premium cigar tobacconists are putting Marco V’s on their shelf. This speaks the value and quality of our cigars.

Going Forward

Marco V Cigars will continue to utilize events at premium tobacconists and other venues to get our product in the customer’s hand. We have ten more events scheduled in Q4. We are confident that if we can get customers to try our cigar once, they will recognize the value of the smoke and become a regular customer. Customer reviews will also be vital to our business. This puts proof behind what we are selling and gives the customer confidence that they are buying a good product for a good value.

Marco V Cigars has began their targeted market push. This push will include markets like Florida, Wisconsin, Illinois, Vegas, the Carolinas, and Pennsylvania . We have picked up a rep in Florida who has a great portfolio of other cigar brands that will be introducing Marco V Cigars to the 264 tobacconists in that area.

Marco V Cigars Co. is dedicated to empowering the B&M cigar shops around the country. This is the foundation of the cigar industry and where cigars should be purchased. Marco V Cigars Co. strategy over the next 3 years will be to find 100 B&M retailers around the country that we support and in return support us... We will cap it at 100 stores to focus on customer service, quality, and listening to what the customer wants.

A couple obstacles

As if the astronomical taxes and government regulation weren’t enough, we at Marco V Cigars also had a few setbacks in Q3.

The biggest setback continues to be being able to keep up with demand in our local market, Minnesota. Marco V Cigars demand has grown exponentially and it has been hard to manage the supply chain. This has hindered our nationwide push slightly but has allowed us to focus on truly understanding our core customer, which is Minnesota.

We have made the decision to permanently remove cigars from our online store. This decision was made by truly understanding our strategy, and that is supplying premium tobacconist B&M’s. If you are a retailer and are interested in sampling Marco V Cigars, please shoot us an email or give us a call. If you are a customer that is interested in trying Marco V Cigars but no retailer in sight, please take advantage of our “Marco V in your local B&M” program. You can read more details on this in our NEWS section on our website.

Our biggest setback in Q2 was that our box manufacturer burned to the ground. They are back and better than ever and our custom made boxes are finally in stock.

Our Pipeline

Our V. Gigante line had its best quarter. All three blends are selling very well. We will continue to offer this three blend line (mild, medium, and meidum-full). We are developing a 4th blend to join the V. Gigante family which will be a unique shade grown wrapper on a true full bodied pure ligero smoke.

In Q4 we will be introducing the Marco V Cigars Salomon that we have named “15”. This will be a one blend line and will be for special occasions. These will be only available at select retailers to start. This is a huge 60 x 7 smoke with all of the Marco V characteristics. The MSPR on this cigar is $8.

In Q1 2010 Marco V Cigars co. will offer a toro, torpedo, lancero and robusto in a special blend under a new brand called the M. VITO line. This is a new brand that will cater to our customers that love our blends but do not love the huge size.. The Lancero in this line will be our first cigar aimed for women smokers.

Also in Q4, Marco V Cigars Co. will introduce our Marco V Aged Port – which is a full bodied dessert wine that was perfectly matched with both of our maduro smokes. This is a truly exciting venture that will make for a great gift or great addition to a holiday celebration. The same quality standards have been applied to our Port.

In 2010 we will introduce our Marco V “The DOM” Premium Coffee which was specifically matched and meant to be consumed with our Marco V Dom Grand Reserve V. Gigante cigar. You will absolutely love this combination. We guarantee it.

MARCO V CO (www.marcovco.com): Was launched in Q3. This will be our parent website that will hold the portfolio for all of Marco V’s products (Port, Cigars, Olive Oil, Coffee, etc).

The Future

Marco V Cigars has established a solid and stable base in its infancy. It is that solid base that will be the launching pad for this exciting new business. We hope our customer base will continue to grow and they will find value and excitement in our brand and in our product lines. We will continue to establish credibility and come to a store near you.

Thank you for your business and continued support.