News and Press

Chicago Oasis Serves up Gourmet Blend Cigarettes

06/01/2006

With Marshall McGearty, RJ. Reynolds probes whether the high-end tobacco lounge might be the future of public smoking.

Anyone who ever charges that there are no creative thinkers left ought to study the people who make up today's cigarette industry. Just when it appeared that there was no place left for their product to penetrate, they may be pioneering a new concept. Late last year, retail tobacco giant Reynolds American, known for such mass-market brands as Camel and Kool, opened Marshall McGearty tobacco lounge in Chicago's Wicker Park through its RJ. Reynolds Tobacco unit. Classifying it as an "age-restricted venue," the upscale cigarette lounge billed as the country's first only sells the compa ny's new premium Marshall McGearty Tobacco Artisans ciga rette brand and is aimed at the adult smoker seeking super-premium products and their accompanying lifestyle.

There are three categories for the new smokes: light and smooth, rich and full-bodied, and mellow and flavorful. They carry such names as North Star, The Empress, Muse, Oriental Rose, The Virginian, and Aegeans. The tobacco blends feature exotic Malawi burley, eucalyptus fire-cured Brazilian leaf, and several delicate Oriental tobaccos. Other entrants weigh in from Zimbabwe, Brazil, Malawi, Thailand, and Virginia.

Reynolds and creative agency Quaker City Mercantile (formerly known as Gyro Worldwide) paid plenty of attention to the Marshall McGearty Tobacco Artisans brand image. Distinctive shoul der-box packaging reinforces the product's top-tier quality. There are 10 blends in all, and each has its own design show casing the blend's inspiration and flavors.

Adding to the mystique and exclusivity, smokers can purchase pre-made cigarettes or have custom Marshall McGearty cigarettes made on the premises by a patented cigarette- blending machine designed by RJR.

Charged with literally re-creating the smoking experience, Philadelphia- based advertising and marketing agency Quaker City Mercantile (formerly known as Gyro Worldwide) put to work its expertise in the segment, as well as its experience developing creative work for Reynold's Kool and Camel brand over the past 15 years. The new brand can be traced to Jerry Marshall, a senior staff blend specialist at R.J. Reynolds, and Larry McGearty, creative director at Quaker City Mercantile, as well as to about two years of research conducted internally by RJR.

At the time of this writing the store has been opened for about six months and lead marketing manager for Marshall McGearty, Stephanie Salcow, said the experiment has been meeting expectations on several levels.

"Our research indicated about 20 percent of adult smokers have a super- premium product mindset," said Sal- cow. RJR took the idea a step further opening the first lounge in Chicago. Commenting on the Starbucks parallel, Salcow said, "Tobacco and coffee have similarities. Varieties grown in different parts of the world have unique tastes. We're not masking these unique flavors but building on them like a cook would use the nuances behind various spices." The 2,400-square-foot refurbished storefront includes a 44-foot walnut-and- marble smoking bar, handmade leather club chairs, sofas, vintage smoking ac coutrements, and a state-of-the-art ventilation system that exchanges the air every six minutes. Patrons can have Marshall McGearty "tobacco artisan" (the smoking version of a barista?) hand- craft a pack of their favorite cigarette blend using a proprietary, manual, patent-pending, small-batch cigarette maker, and sample a connoisseur-quality selection of foods and drink, including range of coffees from the regions where the Marshall McGearty tobacco is grown. The lounge is open from 9 p.m. to midnight, seven days a week, and its cigarettes are only available on the premises--no mail or Internet orders are taken. Nor are they on sale at any other retail outlets. Packs of Marshall McGearty Tobacco Artisans cigarettes retail for $9, putting them at the very high end of the retail hierarchy and out of reach of the discount or volume smoker.

THE SHAPE OF THINGS TO COME?

Some have called it a new form of speak-easy. Others have said it's just another way to get around smoking restrictions. Still others have argued that Reynolds is trying to do for cigarettes what Starbucks has done for gourmet coffee. In any case, early reaction from patrons has been generally positive. Various Chicago-based customer blogs have reported favorable impressions about the lounge. Everything from "not feeling alienated" to a "nice place to meet" has been used to describe the lounge, which has a modern ambience about it.

One observer logged in that after having his ID checked "the staff will ask what cigarettes you usually smoke." Once a patron names their "smoke of choice" they'll be given a recommendation from the menu. "But when the cigs are hand-rolled and brought to you at your table, who can complain?" For the smoker who's tired of being made to feel like an outcast and no longer wants to miss the party while smoking on the sidewalk, an experience like this should be well worth the time and money spent. "Our biggest problem is a shortage of seats," said Salcow. Some anti-smoking proponents have logged on to various Chicago consumer-review sites to file their complaints and rail against RJR for finding a way to circumvent smoking bans, but for the most part, the response has been favorable. The fact that the lounge officially opened the same week that Chicago's new smoking ban went into effect helped gen erate extra press during its debut. Since it qualifies as a "retail tobacco store" under the city's smoking ordinance, where at least 65 percent of sales are for tobacco or tobacco accessories, Marshall McGearty is exempt from the ban.

"The lounge was two years in the making," said Salcow, who added that the company spent a lot of time configuring its layout and that no planning was made to sidestep anti-smoking laws. "It derives the majority of its revenue from the sale of tobacco," she said. Its business model is very similar to upscale cigar stores that permit smoking in their lounge areas while focusing on providing clients with a unique and welcoming experience. "Smokers looking for something new to do on a Saturday night might enjoy the lounge."

According to press releases, the concept behind Marshall McGearty was conceived when fifth-generation tobacco man Jerry Marshall and so-called "creative guru" Larry McGearty of Quaker City Mercantile, Philadelphia, came up with an idea to create world-class tobacco blends and develop similar venues in which adult smokers could gather to enjoy and be educated about premium tobacco.

Quaker City Mercantile (formerly known as Gyro Worldwide) has been working with R.J. Reynolds for the past 15 years developing creative work for the company's Kool and Camel brands. For the Marshall McGearty project, Quaker City Mercantile (formerly known as Gyro Worldwide) functioned as ad agency, design shop, and packaging firm.

"This is a unique opportunity to reach adult smokers who value craftsmanship and are looking for great places to smoke," said Quaker City Mercantile (formerly known as Gyro Worldwide) CEO Steven Grasse in a statement. "Our work with Marshall McGearty has allowed us to convey that connoisseurship in everything from initial store design renderings, packaging and signage to web design, educational materials and employee uniforms. RJR's goal was to literally reinvent the cigarette experience and we helped them do it," says Grasse. "We developed creative that allows adult smokers to encounter the Marshall McGearty brand the same way one would with fine wines and cigars."

McGearty, described as "one of the world's foremost authorities on the mixing of business with pleasure" in a Marshall McGearty statement, is equally effusive. "It's pretty hard to find a really cool and comfortable place to grab a smoke and hang out," he says. "With the introduction of the Marshall McGearty blends and lounge, we've created a smoker's paradise." Local reviews have described the lounge as having an "old fashioned flair and eclectic, hipster edge" appointed with "quirky accoutrements."

Beer and wine are available at the lounge, as are light snacks and fresh pastry. Small entrees can be had for about $8. Over-sized ashtrays and a fireplace, plus cafe tables in the front, offer an eclectic mix, but there's no outdoor seating. Magazines and board games can also be found. Guest DJs appear and all major credit cards are accepted. It's also wheelchair accessible, offers free wi-fi, and occasionally free film screenings. Merchandise includes vintage and modern lighters, cigarette cases, and other smoking-related items.

While initial reports on the cigarette lounge are encouraging, it's too early to tell if RJR will expand the model. Right now, everyone's waiting for the smoke to clear.

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