FRED MEYER TESTS IF HANDMADE CIGAR SALES WILL LIGHT UP

BARBARA McDONALD

PORTLAND, Ore. -- Fred Meyer Inc. here is testing a new humidor display of Gran Reserve Dominican-made cigars in four of its units here and three units in Alaska.

According to Jeff Reece, managing director of Jenovia Distributing, a broker specializing in tobacco products and based in Wilsonville, Ore., near here, gift items from the Gran Reserve line will be available in Quality Food Centers' units, now a subsidiary of Fred Meyer.

After an initial test, Safeway, Pleasanton, Calif., has made a commitment to carry the Gran Reserve line of cigars from Synergy Brands Inc., Syosset, N.Y., in 50 northern Oregon-southwestern Washington stores and as many as 125 of its stores in the Seattle region, including parts of Idaho, Alaska, Montana and Wyoming, according to the broker. The Safeway program will be up and running by Nov. 1, Reece said.

As part of Synergy Brands' selling program, it has developed a custom-designed acrylic countertop humidor for retailers that can display eight varieties of cigars in the line, as well as a variety of branded self-service retail packs, containing three to eight cigars.

Humidors are made available free if the store signs a contract to sell only Gran Reserve cigars, said Mair Faibish, executive vice president of Synergy Brands.

Reece said placing the cigars in the stores by Nov. 1 will give consumers time to realize it's in the store before they have to start to make buying decisions for Thanksgiving and Christmas.

"Multipacks are perfect for out-of-town guests and they make reasonably priced holiday gifts for the boss and co-workers. That was the logic behind QFC's decision and Fred Meyer's," Reece said.

In the Fred Meyer stores, a humidor is placed in each store's wine department, as well as at the customer-service department, Reece said.

In its first year in the cigar business, Synergy Brands has begun shipping its premium handmade Dominican cigars to several major chains that operate and supply several thousand stores, some on the East Coast as well.

Synergy has developed unique point-of-purchase packaging, storage and display materials that allow supermarkets and other outlets to handle premium, handmade cigars. Of the eight varieties being used in the Western program, none is over $6 at retail, which is a plus for supermarket sales, Reece said.

Results since shipping began in May are strong, said Faibish. Besides Safeway, he said, some Supervalu stores, Quik Chek in New Jersey and L'il Champ convenience stores in Florida are carrying the whole line.