Q2 Review/ Communication

Q2 Review/ Communication

Marco V Cigars had another great 3 months of business. Here are some highlights from our second quarter:

- Marco V Cigars had 5 great events at premium tobacconists in the Minneapolis/St. Paul area.

- Marco V Cigars received five more positive reviews from reputable cigar blogs.

- Marco V Cigars also showed up in a number of cigar forums touting their quality and flavor.

- Marco V Cigars has now reached customers in 30 states.

- Marco V Cigars has picked up another 12 retail locations.

As humidors are crowded and the industry is saturated, 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 to get our product in the customer’s hand. We have five more events scheduled in Q3. 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 Midwest push will continue in Q3. This was delayed in Q2 due to supply issues preventing us from keeping up in Minnesota. In the next 3 months you will see Marco V Cigars in states like Wisconsin, Iowa, the Dakotas, and Michigan. Also, our Las Vegas rep is working hard– so look for our cigars in Vegas.

Our local distributor has been going through Marco V Cigars like crazy. He has found a portfolio of premium wine shops and golf courses that can’t keep Marco V’s on their shelves.

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 Q2.

The biggest setback was that our brand new cigar box roll out from the Dominican Republic was destroyed by a fire. Our box manufacturer in the Dominican Republic burned to the ground leaving nothing behind. We are currently looking for secondary sources for box manufacturers.

The second issue has been keeping up with demand. We have talented people working on this issue and look to attain 100% customer service in Q3.

The last issue was with our online store. Our online store is intended to reach customers that do not have access to B&M’s that carry Marco V Cigars. Our main strategy from the beginning has been to sell to and cater to B&M’s. With that being said, Marco V Cigars has made the decision to not honor online purchases of Marco V Cigars in states that have access to B&M’s that carry our cigars.

This was not an easy decision but a decision that was necessary to follow our strategy. If you live in a state that has B&M’s that carry Marco V Cigars but are too far to purchase them, shoot us an email and we will work something out.

Our Pipeline

Our V. Gigante line is selling great. All three blends are selling well, and we will continue to offer this three blend line (mild, medium, and full). We are developing a 4th blend to join the V. Gigante family which will be a unique shade grown wrapper on a medium-full bodied smoke.

We are also bringing on a Marco V Cigars Salomon line. We will again have a mild, medium, and full bodied smoke. These will be only available online to start. This is a huge 60 x 7 smoke with all of the Marco V characteristics.

ANNOUNCEMENT: Marco V Cigars will offer a toro, torpedo, and robusto in the Platinum blend under a new brand that will be unveiled later this year.

In late 2009 and early 2010 we will introduce our Marco V Aged Port – which is a full bodied dessert wine that was perfectly matched with our maduro smokes.

Later in 2010 we will introduce our Marco V “MMX” Single Malt Scotch which goes together wonderfully with all three of our blends of cigar.

ANNOUNCEMENT: MARCO V CO (www.marcovco.com): Will be launched in 2010. This will be our parent website that will hold the portfolio for all of Marco V’s products (Port, Cigars, Scotch, 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.