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20, 2017 (GLOBE NEWSWIRE) -- RICH Cigars, Inc. ("RICH"), (OTCPink:RCGR), a manufacturer of high-quality premium cigar products, proudly announced today, that the Company has begun an effort to expand its market by achieving various State approvals to broaden its ability to directly wholesale to retailers the RICH brand's core line of cigars. "We have a production of 100,000 sticks, from our core line of unique blended cigars, that will soon make their way to the U.S. from our Nicaraguan facility," said Al Rushing, Vice President and COO of RICH Cigars, Inc. "It is important we receive the strongest financial benefit from distribution. Having the ability, particularly in key areas, to directly wholesale vs. using regional or local 'middle-men' will help accomplish this." While the Company'shand-made cigarsare currently sold nationallythroughlocal and regional cigarretailers, management indicated the Company currently uses multiple distribution outlets in its logistics. While having early distribution is a great achievement, especially larger outfits - as management is in talks with major national distributors - having the ability to wholesale directly, affords their product greater value to consumers; which is inherent to the Company's success. Mr. Rushing continued, "We currently have the ability to directly distribute 'wholesale/retail' in the states of Louisiana, Mississippi, Florida and Pennsylvania. This gives us a huge financial advantage in these states vs. those states where we would use a middle-man (Independent Distributors). Also, the markup cost, that is ultimately absorbed by the end consumer, is far less in the states where we are approved for direct distribution vs. those where we are not. "The goal is to get the approval of individual States - where such approval is mandated - and begin distributing our core line directly. This should ultimately result in greater sales and profitability." Most States require a license for a manufacturer to directly sell tobacco products in that State. The Company has already filed applications in key States where the brand's marketing is primarily targeted. Management believes this will speed up the process of retailers carrying the brand's core line.


For the original version including any supplementary images or video, visit https://www.thestreet.com/story/13960510/1/rich-cigars-begins-expansion-of-wholesale-and-retail-state-distribution.html



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