Best Cigar Prices Merges With Alliance Cigar
Two former competitors are now allies. Online and catalog retailer Best Cigar Prices, which is based in Drums, Pennsylvania, has merged with Alliance Cigar, a wholesale distributor from Hauppauge, New York. Alliance now operates as the B2B wholesale division of Best, while Best concentrates on consumer sales.
As part of the merger, which was announced on May 16, Tom Sullivan (Alliance founder) and Steve Kallinikos (Alliance president) now serve as executive vice presidents of Alliance while Greg Fox continues his role as president and CEO of Best Cigar Prices, and he has also been named president and CEO of Alliance. Both Sullivan and Kallinikos are now shareholders with board representation in the combined companies. The partnership aims to more efficiently serve consumers and retailers.
“This is a natural and very exciting strategic combination of our businesses,” says Fox. “We've known and respected each other for decades and now we have the opportunity to grow both businesses together and to combine our best-in-class services across customer categories.”
Best Cigar Prices is owned by New Global Marketing Inc., an independently-owned business started in upstate New York by Allan Blatt in 1996. In the late '90s, the company established Best Cigar Prices, subsequently relocating to Pennsylvania in 2011 where it’s now headquartered. The facility has since grown to a centralized cigar compound that includes a retail shop, cigar-friendly bar and restaurant, a 15,000 square-foot inventory warehouse, corporate offices and fulfillment center. Best previously ran its wholesale business solely through its subsidiary, Cigar Hub.
“We decided the best way forward to continue to deliver incredible value to our customers and grow our business, was to combine with another independent, closely-held operator who understands our commitment to customer service and great products,” says Sullivan, who started Alliance in 1997. For nearly 30 years, Alliance has focused its business on servicing retailers around the country with cigars. “We look forward to working with Greg and the team in Drums as our new partners.”
Alliance will continue to operate out of New York.
Financial of the transaction have not been disclosed.
