Entries Tagged 'Exhibitions' ↓

Last week’s World Tobacco (WT) exhibition in Hydarabad India was unexpectantly disrupted.

The cause: Iceland’s now famous Eyjafjallajokull (sic) volcano’s ash cloud eruption causing almost all European flights to be grounded. This extraordinary activity disrupted travel plans stranding many visitors and would-be exhibitors in Europe – including Colin Case the show’s organizer.

It is hard to believe that a volcano erupting in Iceland can disrupt an exhibition in India.

It is now easy to see how an unforeseen event can have large implications for a (tobacco) exhibition.

If you attended – let us know how it went……

This Post is informative but I’m sure folks have an opinion on this and have comments to share. So what are your thoughts? Any thoughts that need to be passed on as I know NATO views TobaccoToday?

MINNEAPOLIS — The National Association of Tobacco Outlets (NATO) has announced that it has received a wave of new exhibitor commitments to the 2011 NATO Show, the inaugural trade show for the association. The latest exhibitors to sign up for the NATO Show include A&T Tobacco Imports, Bags of Bags, Bahama Mama Cigars, Beach Cigar Group, Inc./Gurhka Cigars, Cheyenne International, DWC Enterprises, Global Tobacco, Great Midwest Tube & RYO Machines, International Tobacco Partners, Liaison Sales and Marketing, M & R Holdings, National Honey Almond, Rouseco and Tantus Tobacco.

The 2011 NATO Show will be held at the Rio Hotel in Las Vegas on April 12-14. The NATO Show will feature educational seminars for retailers, the NATO Annual Awards Dinner, along with evening parties and special show deals.

Jim Colucci, senior vice president sales and marketing for Altadis USA and a member of the NATO Trade Show Committee, said, “Having a great trade show means that retailers find value in attending, and the retailers are telling manufacturers and distributors, this is the show to attend. When that happens, companies can’t wait to sign up. Also, these companies realize NATO has put more resources into fighting legislative battles than ever before, and helping support the trade show means more resources to fight anti-tobacco legislation. That’s a big point of difference between NATO and other shows which will not be using the proceeds to fight tobacco-related legislation.”

The NATO Show has already received commitments to exhibit from more than 30 manufacturers and distributors.

Companies include Nat Sherman, New Image Global, Smokey Mountain Chew, Zander-Greg and K. K. International Corp. Also Arango Cigar Co., Carolina Tobacco, Dom Rey Cigar, Inc./Cusano Cigars, Drew Estate, Harold Levinson Associates, House of Oxford, King Maker Marketing, Renegade Tobacco/House of Windsor, Smoker Friendly International, U.S. Flue-Cured Tobacco Growers and Zippo Lighter Co. And Altadis USA, Swisher International, Swedish Match, Republic Tobacco and National Tobacco Co.

Minneapolis-based NATO is a national retail trade association that focuses exclusively on state and federal tobacco legislative issues and leads the fight for all tobacco interests in the United States.

Who’s not helping the Tobacco Industry…?

Until recently we had one major exhibition in Europe every four years, TabExpo; then we had the announcement by WT that an additional event in Europe would be held.  The industry wants less events – or at least lower cost – so we now have the organizations in direct competition for the same business in the same month and year. Two European exhibitions (TR’s TabExpo in Prague & WT in Munich) are set for November 2011 – and just five days apart!

Both have scheduled events in India this year – one an exhibition the other a Networking Forum.

As market leader TR moves ahead with 50 or so confirmed exhibitors already for TabExpo Prague in 2011, it is largely ignoring WT who is left looking desperate in attempting to undermine the viability of Prague in favor of Munich.

Why is this?

The stark reality is the Tobacco Industry is shrinking. Besides China, much of the tobacco industry is mature and driven by consolidation, regulations and taxation – resulting in reduced profitability. A handful of major players (CNTC, PMI, BAT, PM USA, and JTI & Imperial) dominate. The supply side – lagging well behind – has a plethora of players who have not rescaled their business. The result: Piranhas in a goldfish bowl. This reality defines the recent competitiveness between WT and TR as they compete for exhibitors and attendees

But it didn’t have to be this way…….

Seizing what appeared to be an opportunity caused by the debacle which became TabInfo Asia Bangkok last November, WT announced World Tobacco Expo 2011 in Munich. But this announcement came after TR announced TabExpo would be held in Prague.

Why do this?

 It’s tempting to say – who knows – but the appearance of a direct confrontation by WT on TR is hard to ignore. Why else schedule another European exhibition immediately prior to TabExpo Prague, especially and knowingly that TabExpo was always held in November and every four years.

So who wins……………?

Until one organizer assembles an unassailable competitive position – not the tobacco Industry. Exhibitors now have to decide which show to attend and be able to justify it in this cost-conscious environment. It was an unnecessary move and a risky one by WT (that could easily have been avoided.) As it is, if both go ahead then each exhibition dilutes the other, diminishing profitability. If ever there was a time for Industry solidarity it is now.

How did this happen?

Like the Olympics, the Industry and TR agreed to hold TabExpo in Europe once every four years (excepting Barcelona, delayed until 2003.) This has been the case since 1994 and TR has kept to this agreement.

By contrast WT magazine, under the ownership of the Daily Mail Group (DMG) struggled to compete with the three other tobacco magazines; TR, TI and TJI. WT supplemented its profitability to DMG with trade shows which are now “two a year”.  Sadly it was after WT Asia last year that DMG ceased publication of WT Magazine and sold the WT trade show business to Quartz Business Media and announced a merger with TJI (where TJI’s role is to publicize WT’s events.)

So…… Is there space for two events?  Is there the need for annual events?

No.  And certainly not in the space of five days in November 2011.

What was WT thinking………………….?

The Show that means business for all those in the tobacco business. It’s @ the Las Vegas Convention Center, March 3rd & 4th 2010. Who’s going? Report back! Tell us what was good? What was new? What you learn? Have a great time! – See you at the show!

Even before it opened TabInfo Asia 2009, held in Bangkok Thailand November 11-13, had problems which only became worse.

Originally arranged as a private Tobacco Industry event, the Thai government declared it public shortly before opening. This meant all Thai tobacco restrictions on advertising and tobacco product display (which are stringent) were effective – something the organizers (Tobacco Reporter and Think Event Marketing) thought had been covered.

Caught wrong-footed the organizers rushed to issue statements to exhibitors advising the new restrictions and the penalties for violators. With this back-drop it became unviable to show any tobacco products or advertising without risking fines and / or imprisonment - something not too many exhibitors were willing to risk.

Under goverment pressure the Thai Tobacco Monopoly converted their mega show-case anchor stand into a Welcome to Thailand Center.

Demonstrators gathered outside the site to protest on the first day – kept at bay by last-minute security personnel.

Total attendance was less than 1,000 visitors over three days leaving plenty of time to renew acquaintances with tobacco colleagues and fellow exhibitors from around the world. Opportunities to develop contacts and conduct business evaporated -leaving dismay and cost.

Post exhibition; the original decision to hold a show in Thailand looked flawed. The exhibition hall at the Impact Centre (sic)  was a considerable distance from the centre of Bangkok requiring a commute of 40 minutes each way – assuming traffic cooperated (which it didn’t.) Predictably exhibitors were upset – raising the broader issue of the number of Tobacco exhibitions in close proximity between Tobacco Reporter (TR), World Tobacco (WT) and Tobacco Intenational (TI.)

To illustrate; in 2010 Tobacco International (TI) holds its annual show in Krakow Poland April 15-17. WT plans its show in Hyderabad India April 21/21, TR a networking forum (gtnf) in Bangalore in October – followed by WT Asia in Jakarta October 27-29. 2011 sees a WT show in Munich November 8-10 then TR Prague November 15-18. WT plans another show in Jakarta in November 2012.

The industry can’t keep up. The Tobacco Industry cost structure has changed and the show organizers show no sign of acknowledging this fundamental shift. The signs are all around. Big tobacco withdrew its participation about 10 years ago, followed by the larger machinery suppliers. Shows have shrunk and so has attendance.

The show organizers need to reconsider their events as there is mounting evidence it is unsustainable.

Feel free to add your comments and suggestions…………………………