Phillips & King International Inc.

Phillips & King International Inc. (PKI) in Moorpark, CA, a leading specialty tobacco distributor with a product line that includes specialty cigarettes, cigars, pipe tobacco products and accessories, is poised for strong growth throughout 2014 and beyond.

Th e company, founded in Los Angeles in 1984 by Hugo Cassar, is well positioned to take advantage of consumer trends and satisfy retailer needs, with multiple lines of popular products, programs in place to help retailers, and a corporate philosophy that stresses good old-fashioned hard work.

“We have focused on being the one-stop for the brick-and-mortar’s needs,” says General Manager Sergio Montolfo. “Retailers should spend more time selling and less time buying. We are a family business and we deal with family businesses every day, so relationships and growing with our retailers mean a lot to us.”

PKI has always focused on cigars, pipes and pipe tobacco “as the backbone of our business,” says Montolfo, “serving tobacconists and cigar retailers.” As times have changed, management has adapted to ensure continued growth.

For examples, PKI moved into hookahs with its own Voodoo brand of tobacco back in 2007. “We caught that wave and it is still a profi table segment,” he notes. Today, the fi rm has grown into a leading provider of multiple leading brands of e-cigarettes and e-vapor products. “We try to get there before anybody else. Much of what we sell today is our own brands.”

Phillips & King’s top-selling product line is premium tobacco, a category that Montolfo sees continuing to be strong nationwide. “It has been for all of these years,” he refl ects, “and we see no reason to believe that it’s going away any time soon.”

Th e company has changed “tremendously” over the years, Montolfo refl ects, “because we’ve had to in order to survive. We employ over 400 people, working out of three buildings and over 250,000 sq. ft ., and they rely on us for job security.”

Among his company’s greatest strengths, says Montolfo, is the fact that it “truly is a onestop shop. If you were starting a tobacconist shop or cigar store tomorrow, we could supply your entire inventory in 24 hours. Our newest vape line of products includes brands like Voodoo, EZ, and Cig20 along with some really tasty liquids.” It also carries solid lines of premium cigars like Psyko Seven and Project 805, which he says “are fl ying off the shelves.” Th e highly-rated brands have been featured in a variety of media and news outlets, including Cigar A cionado Magazine.

Retailers and buyers routinely purchase PKI’s products via the PKI Website, a printed catalog or by phone, which is also part of the sales strategy. Says Montolfo, “We make the process very simple, quick and thorough so that all of our customers can get their products (easily).” Stores can order goods as needed and use us as their own warehouse so that they can maximize their profi ts by turning their inventory over quickly.

“As I said,” Montolfo notes, “Phillips & King knows brick and mortar. Every day, we are buying and stocking the items a retailer needs to make his business grow.” A state-of-the-art shipping facility makes purchasing even more convenient.

PKI customers also enjoy 24-hour access to a wealth of information on its website. Among the new features that the site provides in addition to a complete product catalog are monthly specials and store sales by product, which allows them to review sales trends and forecast orders better. Clients also have access to a monthly fl yer called Th e Price Kutter, which features a variety of specials and promotions.

When it comes to generating sales at retail, Montolfo has found over the years that it starts with savvy product selection. “It’s all in having the trending products on their shelves.” Th us, category management becomes paramount. At the same time, canny merchandising can always help drive sales.

“So much of it is about retailers making their products viewable to customers coming in,” he says. To help retail establishments do that, PKI provides a wide variety of point-of-sale tools and materials – from standard displays to stickers, shelf talkers, register talkers, posters, window clings and both informational and product-use catalogs. In all, the company services more than 14,000 retailers across the United States.

PKI’s approach to business closely follows its corporate culture, according to Montolfo, which he characterizes as “work hard, play hard. Th at is kind of the company motto. Th e harder you work the more fun you have during your play time.” Toward that end, the fi rm’s management makes companywide recreational activities for its employees – “corporate get-together kinds of things” such as picnics and holiday dinners -- a priority.

Another management priority is giving back to the community. For the past 15 years, PKI has hosted an annual charity Golf and Trapp Shooting Tournament. “We’ve raised a total of more than $500,000 for a variety of diff erent charities,” says Montolfo. Over the course of the last year, in fact, the fi rm raised $40,000 for Food Share, a group that provides food to the hungry.

Th at caring for people – customers, consumers and others – will remain a critical part of what helps set PKI apart from its competitors.