Tag: Republic Brands

  • On a Roll

    On a Roll

    image: Miquel y Costas

    Driven by cost considerations and growing environmental awareness, do-it-yourself cigarette papers continue to gain popularity.

    By Stefanie Rossel

    Traditionally, roll-your-own (RYO) products thrive in difficult economic periods, and for the time being, it appears, the challenges won’t cease. As the Covid-19 pandemic ebbed, the world was shaken by war in Ukraine, worsening inflation and cost-of-living crises in many countries. Since October, global stability and confidence has been further eroded by the war between Israel and Hamas.

    The economic slump means that many consumers are coping with lower disposable incomes. Among smokers, such a development often encourages a shift from factory-made cigarettes to more affordable RYO or make-your-own (MYO) products.

    Market research companies are hence upbeat about the rolling papers market. Future Market Insights (FMI), for example, expects the value of the global cigarette paper market to grow from $714 million in 2023 to $1.19 billion by 2033, registering a compound annual growth rate (CAGR) of 5.2 percent during that period. “The rising popularity of smoking rolled cigarettes along with an increasing number of states legalizing recreational cannabis are the key factors expected to augment the demand for rolling papers,” the report states. The U.S., where 24 states permit recreational cannabis use, accounts for 16.9 percent of the global rolling papers market.

    In emerging economies, meanwhile, growing demand for rolling tobacco is creating opportunities for manufacturers to expand their footprints in untapped markets, FMI writes. In some of these countries, restrictions on reduced-risk products also play a role. India, for instance, which banned vape products in 2019, is predicted to witness a CAGR of 6.9 percent in sales of rolling papers through 2033.

    Adult smokers increasingly seek all-in-one packaging solutions, rather than making multiple separate purchases.

    Careful Navigation Needed

    The global rolling papers market is dominated by several large players. Lately, however, smaller entrants to the category have been offering niche or novelty products in terms of sizes, colors and ingredients.

    “In general, we see an upward trend in the global market for rolling papers being driven by increasing preference for hand-rolled tobacco due to the value offer they provide compared to factory-made cigarettes as well as the rise in prominence for more environmentally friendly and innovative products,” notes Jose Rubiralta, global manager of Rizla, which is part of Imperial Brands. “For Rizla specifically, the more recent negative global developments mentioned bear limited impact. We are actively expanding our presence in different markets to build on our position as the world’s most iconic rolling paper brand.”

    Santiago Sanchez, executive president of France-based Republic Technologies Group, which is best known for its OCB, Zig-Zag and JOB brands, says that the Covid-19 pandemic had boosted his company’s sales. The more recent series of crises has made it difficult to find shipping vessels, however. It has also boosted inflation and caused a scarcity of raw materials. “I usually say that our products sell better during a crisis—and this is what is happening—though I personally regret very much the suffering of so many people in the present wars.”

    Republic has been doing well in its core markets. “Besides, we see an opportunity in new markets, mainly on the American continent,” says Sanchez. “This is not yet linked very much to the RYO tobacco expansion but the depenalization of certain substances such as cannabis that were prosecuted until recently.”

    For Xavier Garcia, commercial director of the RYO division at Miquel y Costas, the geopolitical challenges pose new hurdles that require careful navigation. “While we celebrate the positive impact of changing consumer habits, we must remain vigilant in the face of geopolitical complexities. The challenges are formidable, but they present opportunities for innovation and strategic adaptation.”

    Smoking Paper, Miquel y Costas’ rolling paper brand that will celebrate its 100th anniversary in 2024, currently experiences significant growth in various markets. “The growth of the brand is something transversal and not specific to just a few markets,” says Garcia, who attributes its growing popularity of RYO and MYO products to shortages of affordable cigarettes and higher taxation of factory-made products, among other factors.

    We see that consumers ask for new products that are more environmentally friendly.

    More Regulatory Hurdles

    The next challenge for tobacco-related rolling papers will be regulation, according to Sanchez. “We have the intrusion of the politicians with constant new regulations,” he says. “We will see what happens with the revision of the European Union Tobacco Products Directive and new laws trying to overregulate [the industry] such as [those] trying to have tobacco-free generations and forbidding filters.”

    Another challenge comes from the EU Single-Use Plastics Directive (SUPD), which entered into force in 2021 and bans the sale of single-use plastic items such as plates, cutlery, straws and plastic/cotton bud sticks as well as food containers and expanded polystyrene cups. The law exempts cigarette filters but will oblige tobacco manufacturers to cover the costs of consumer awareness-raising measures and extended producer responsibility schemes tackling the cleanup of litter and its subsequent transport and treatment and other issues starting this December.

    “While personally I have always been a great defender of the environment, I would have preferred a smoother application of the directive,” he points out. “The commission has not fulfilled its own timetable and now, in November, we still do not know about taxes to be paid next year, especially considering that some will be retroactive to 2023. Once again, the pressure for the smaller manufacturers is enormous and disproportionate.”

    Whether driven by regulation or other factors, eco-friendliness is a major trend in rolling papers, according to Rubiralta. “In line with key consumer trends in the broader fast-moving consumer goods industry, there is a growing demand for more environmentally sustainable products,” he says. “As part of our ongoing efforts, we are actively exploring strategies to reduce the impact to the environment. This includes different product and packaging initiatives of Rizla products, amongst other contributions.

    “This summer, for example, we have introduced our Natura filter tips as well as our plastic-free tips in selected markets, such as Greece. This is our first plastic-free tips range, made with biodegradable paper, which is a milestone that our team takes great pride in. This complements our recent environmentally friendly paper launches of Rizla Classic, which are unbleached papers, Natura hemp papers and our innovative Rizla Bamboo papers offer, which have received favorable consumer responses.”  

    Sanchez’s experience is similar. “We see that consumers ask for new products that are more environmentally friendly,” he says. “For centuries, our industry has used flax and hemp as fibers to produce rolling cigarette paper. Different fibers are now in demand, such as bamboo and rice. There is a preference of some people for rice paper, a raw material that was used many years ago to produce paper. With the improvement of paper technology, these fibers were abandoned because of their fragility. Many products still claim to be ‘rice paper,’ although they’re not made of rice. Republic has gone back to the origins, and it is now producing a special blend of rice plus organic hemp paper, which is the only product in the market containing real rice.”

    Several months ago, Republic Technologies introduced the first bagged filter paper. The company is also reviewing all its packaging to remove plastic wherever possible. “Most of our boxes are no longer plastic-wrapped but they still can guarantee the freshness of the product,” says Sanchez. “We have never been fans of closing devices such as magnets because we feel it goes against the environmental target, so we have developed a new way to close some of our booklets just with a paper flap.”

    While we celebrate the positive impact of changing consumer habits, we must remain vigilant in the face of geopolitical complexities. The challenges are formidable, but they present opportunities for innovation and strategic adaptation.

    Seeking Convenience

    In addition to natural papers and innovative materials, demand is also shifting toward larger paper formats and more advanced products, such as thinner papers, according to Rubiralta. Convenience is a big driver as well. “Adult smokers increasingly seek all-in-one packaging solutions, rather than making multiple separate purchases,” he says. “In response, we are placing a strong emphasis on our combi-packs, expanding our product offerings, and ensuring that this product is readily available to our key customers where this format is relevant.” The company launched its combi-packs of papers and paper filters in the U.K. this year.

    “Customers are steering the industry toward a future marked by sustainability, exploration of materials and a demand for convenient solutions,” confirms Montse Bonjorn, director of marketing of Miquel y Costas’ RYO division. “At Miquel y Costas, we’re not merely observing these trends; we’re actively shaping the future of smoking experiences in alignment with our customers’ evolving preferences.”

    The company recently introduced a range of eco-friendly, biodegradable paper filters. “As part of our commitment to setting new industry standards, we are set to launch Smoking Supreme, a product that transcends the ordinary,” she says. “Crafted with meticulous attention to detail, this new rolling paper is characterized by its feather-light weight of 12 grams and an ultra-soft surface texture—a harmonious blend for a supreme smoking experience.”

    In 2021, the company launched Smoking Cones, a collection of pre-rolled cones crafted in a unique spiral design, a layout that requires less paper and glue to manufacture.

    Potential for Growth

    Cannabis is playing an ever more important role for rolling papers manufacturers. As further legalization of recreational cannabis is expected in the U.S. and Europe, Sanchez expects demand for RYO papers to increase. “We have developed a patented system to infuse CBD in the natural gum used in the papers. These new products are now available under the Roor trademark that the group acquired a few years ago. Moreover, we have developed a new slim paper, including tips with a length of 125 mm, for the cannabis market.”

    “While global trends indicate a surge in cannabis-related products, our focus remains on identifying markets with the greatest potential,” Bonjorn explains. “Regions where cannabis legalization or cultural acceptance is on the rise are particularly promising. Latin America, North America and parts of Europe are among the regions showing considerable potential for growth.”

    Miquel y Costas is actively navigating the evolving dynamics of the cannabis market. The company, says Garcia, is ready to contribute innovative solutions to cater to the evolving needs of cannabis enthusiasts. “As we anticipate developments, our strategic approach includes identifying markets where the potential for growth aligns with our commitment to quality and innovation,” he says.

  • Court Upholds IP Damages for Republic

    Court Upholds IP Damages for Republic

    The U.S. Court of Appeals for the Eleventh Circuit on Aug. 22 upheld a multimillion dollar verdict against Diamond Wholesale and its owner, Raj Solomon, for infringing trademarks owned by Top Tobacco, Republic Technologies and Republic Tobacco, reports IPWatchdog.

    In March 2022, a jury in the U.S. District Court of Georgia awarded Top Tobacco $11 million in damages against the wholesale company and its owner. Diamond Wholesale appealed the ruling, arguing that the district curt erred in excluding evidence, including witness testimony and invoices, that would have proven the retailer and its owner believed it was purchasing the counterfeit product from a legitimate seller, Star Importers, and that their infringement could therefore not have been intentional.

    However, the Eleventh Circuit ruled that a “showing of intent or bad faith is unnecessary to establish a violation.”

    Earlier this year, federal jurors in Atlanta awarded Republic Brands $2.3 million in statutory damages in a case about counterfeit tobacco rolling papers against Star Importers and ZCell & Novelties.

  • Court Upholds IP Damages for Republic Tobacco

    Court Upholds IP Damages for Republic Tobacco

    The U.S. Court of Appeals for the Eleventh Circuit on Aug. 22 upheld a multimillion dollar verdict against Diamond Wholesale and its owner, Raj Solomon, for infringing trademarks owned by Top Tobacco, Republic Technologies and Republic Tobacco, reports IPWatchdog.

    In March 2022, a jury in the U.S. District Court of Georgia awarded Top Tobacco $11 million in damages against the wholesale company and its owner. Diamond Wholesale appealed the ruling, arguing that the district curt erred in excluding evidence, including witness testimony and invoices, that would have proven the retailer and its owner believed it was purchasing the counterfeit product from a legitimate seller, Star Importers, and that their infringement could therefore not have been intentional.

    However, the Eleventh Circuit ruled that a “showing of intent or bad faith is unnecessary to establish a violation.”

    Earlier this year, federal jurors in Atlanta awarded Republic Brands $2.3 million in statutory damages in a case about counterfeit tobacco rolling papers against Star Importers and ZCell & Novelties.

  • Republic Awarded $2.3 Million

    Republic Awarded $2.3 Million

    Federal jurors in Atlanta awarded Republic Brands $2.3 million in statutory damages in a case about counterfeit tobacco rolling papers.

    The company had accused Star Importers & Wholesalers and ZCell & Novelties of selling fake versions of its Top and Job rolling papers in the United States. Amin S. Hudda and Samadali Lakhani, the respective owners of the distribution companies, will also be held personally responsible for the counterfeiting activities.

    According to Law360, the jury found that Republic hadn’t proven that the wholesalers willfully bought and sold fake rolling papers bearing Top and Job trademarks.

    Had the jurors found the companies’ infringement willful, each could have faced up to $18 million in statutory damages under the Lanham Act, as well as treble damages under federal law.

    The case marks Republic Brands’ latest victory in its fight against brand piracy. Over the past two years, the company obtained judgments against four wholesale companies operating in Georgia and their respective owners, personally, for engaging in illegal infringing activities and selling counterfeit goods, according to Adams and Reese, which represented Republic Brands.  

    In 2022, Republic won an $11 million judgement against another Georgia wholesaler and its owner.

     

  • Rolling With The Punches

    Rolling With The Punches

    Photo: Republic Brands

    Rolling paper manufacturers benefit from pandemic-related downtrading and moves to legalize cannabis.

    By Stefanie Rossel

    With Covid-19 refusing to clear the stage and Russia invading Ukraine, crisis appears to have become the new normal. For many industries, business as usual ceased when the pandemic broke out two years ago, bringing about an economic slump. Worldwide, consumers have had to cope with lower disposable incomes. Such a development often prompts smokers to switch from expensive factory-made cigarettes to more affordable roll-your-own or make-your-own products—and, indeed, manufacturers of cigarette rolling papers have noted a positive effect on their businesses.

    “Speaking exclusively from a business perspective, we had two extremely strong years with record sales levels,” relates Santiago Sanchez, executive president of Republic Brands in France. “We were fortunate to have our plants running at full capacity as we didn’t have to shut them down for a day. Of course, the health of our employees was a priority, but thanks to the strict sanitary measures taken from day one, we were able to maintain or even increase our volumes.”

    Michael O’Malley, founder and CEO of Curved Papers in the U.S., says his rolling paper sales were up 40 percent last year. “People are just blazing weed like never before,” he says. “And it’s a good alternative among the choices people have made to cope.”

    Lisa Esser, head of corporate affairs and business development at Gizeh Raucherbedarf in Germany, has observed an enormous shift of sales within Europe due to closed borders during the pandemic. While in 2019, almost 20 percent of cigarettes consumed had been nonduty paid, it was “only” 14 percent in 2021, she points out. The development was similar for rolling tobacco. However, while the absolute share of duty-paid tobacco sales in Germany grew during the pandemic, this does not reflect more tobacco consumption in absolute terms. Rather, says Esser, a large share of the previous cross-border sales has returned to national retail.

    Curved Papers’ sales jumped 40 percent in 2021.
    (Photo: Curved Papers)

    Rising Production Costs

    Santiago Sanchez

    The numerous pandemic-related disruptions, including container shortages and raw material price increases, have also impacted suppliers of rolling paper. The availability of cartons and cellulose have been especially affected. “The vast increases in energy costs are not only hitting us but also our suppliers, who often pass on these costs to us,” says Esser. “There are also considerable challenges in logistics, with much longer lead times and shipping costs partly exploding. We expect price hikes of 10 [percent] to 20 percent across the entire value chain. Nevertheless, our supply of materials has been secured and continues to be of highest priority for us.”

    During the first days of the lockdown, particularly in 2020, Republic Brands was concerned about logistical problems, both in the supply of raw materials and in the shipment of their finished products, according to Sanchez. “Thanks to the strong mobilization of logistics companies, our activities have not suffered in terms of logistics,” he says. “On the other hand, in the second half of 2021, we faced, like all other industries, difficulties in the Chinese supply chain, particularly the shortage of containers. These were just the beginnings of the tensions we are currently experiencing.”

    Curved Papers, which caters mainly to the U.S. and Canadian markets, says it has been able to keep its stocks at the required levels. “Shipping has made us take a hit, but we’re not yet changing our price to the customer,” says O’Malley. While the conflict in Ukraine has not directly impacted his company, the global double whammy of a pandemic followed by the threat of World War III has made it hard to start new initiatives around the world. “It seems a matter of keeping what you have together and trying to respond to demand,” says O’Malley.

    Esser expects a dramatic rise in costs and purchasing prices. “Risk assessment has shown that the pricing situation represents the biggest risk,” she says. “The situation has been exacerbated by the Ukraine crisis. We must contend with difficult conditions and are in close contact with our suppliers to be able to mitigate potential hurdles early on.”

    Republic Brands is present in more than 100 markets and, as a result, feels the impact of the conflict, according to Sanchez. “I will not say anything original if I say that the Ukrainian war, in addition to being a humanitarian disaster in Europe, is significantly affecting all our activities in every sense of the word,” he says. “I have never seen anything like this before. Rising prices [for raw materials] are not the only problem. There is also a lot of pressure on the availability of raw materials. Just as there is a lot of pressure on the availability and consumption of energy. Some companies in our sector or in related industries—cigarette paper, acetate tow, etc.—consume lots of energy and are therefore highly exposed to the risk of increased energy costs. For our part, and even if it is symbolic, we have decided to stop our sales in Russia and Belarus. This is the minimum we could do.”

    Eager to reduce the environmental footprint of their operations, rolling paper manufacturers are increasingly using fast-growing or recycled materials instead of fresh fibers in their products.
    (Photo: Gizeh Raucherbedarf)

    Greening Processes

    Michael O’Malley

    In addition to coping with current challenges, companies are working to become more sustainable. O’Malley, whose rolling papers are manufactured in the Dominican Republic, says his company’s paper comes from Forest Stewardship Council-certified forests and is produced under processes following strict European standards. “We would like to use more recycled material in our packaging,” he says. “We are always innovating.”

    Gizeh, meanwhile, is striving to install sustainable processes in all of its operations. “Improvement is an ongoing project,” says Esser. “The maximum reduction of energy consumption is given high priority. In Austria, for example—our largest production site—we have invested in a photovoltaic system. Besides, we are constantly trying to reduce the use of fresh fibers and instead utilize fast-growing alternatives or recycled materials.”

    Republic Brands, too, is continuously working to minimize its carbon footprint. “An important step has been obtaining the ISO 14001 certification, which confirms the implementation and the effectiveness of an environmental management system. The group and all its employees adhere to a set of common values that are grouped together in an environmental charter, which can be accessed from our website.” The company’s factory in Perpignan, France, and its booklet distribution warehouse are powered by hydroelectric power stations in the Pyrenees and in the Alps.

    Republic has launched a cigarette paper booklet with a CBD-infused gum line under Roor brand in select European countries. (Photo: Republic Brands)

    The Power of Pot

    While the current business environment for rolling papers is far from ideal, new opportunities keep arising as more jurisdictions around the world legalize cannabis. “In countries where legalization has occurred in recent years, such as Canada and the United States, we are seeing a growth in sales,” confirms Sanchez. “The debate is open in many European countries, and now the only question is how soon the legislation on cannabis use will be relaxed,” he says. “We were the first to develop a new product for this category—namely a cigarette paper booklet with a CBD-infused gum line. Under the iconic Roor brand, these products have been launched in select European countries. In addition, one of the products is made from rice paper. Currently, this is the only product containing real rice fiber—from Camargue, France—although many others print ‘rice’ in their packaging.”

    Founded in 2014, Curved Paper started out offering cigarette papers for cannabis consumption. “Eventually, hemp and flax came in as a couple of concerns or interests drove innovation of hemp and other nonwood material-based papers,” says O’Malley. “There is something to the don’t-cut-down-trees thing, of course, though we do it sustainably—but they do make the best rolling paper. The inexorable drive toward lighter papers, which zoomed right past the desirable range for a while there, was accompanied by this diversion away from wood pulp papers.

    “Hemp-based papers are popular as [hemp] is from the same plant as marijuana. The papers commonly called ‘rice papers’ are mostly made from hemp and flax. The term ‘rice’ is from the early days of fine paper centuries ago. Fine paper first came from China and was indeed made from rice. So as Europeans developed printing and the fine European paper we have had for centuries now, they called all fine paper rice paper, and that term of art remains in use till this day not only in rolling papers but in all kinds of paper industries.”

    Curved Paper offers seven styles based on four kinds of paper at two popular sizes, 1 1/4 and KSS. “Our marketing is still only U.S.[-based] and Canada-based, so our focus remains on cannabis,” says O’Malley. “Tobacco is 25 times as big. We have customers in the U.K. and the EU and all over the world, and we look forward to the global market, which is much larger for some of our exact same products. We are not looking to flood the market with a lot of silly products. In the long run, easy, simple and natural are going to be strong qualities to market. While cut corners are making a big move in 2022, our easy-to-roll curved edge is the next-generation solution to the same problem—and our key differentiator.”

    Having recently decided to legalize recreational marijuana (see “State of Euphoria,” Tobacco Reporter, February 2022), Germany is poised to become the EU’s most important cannabis market—although it will likely take years before cannabis will be legally available in the country. Esser welcomes sensible regulation, saying that consumers should have access to less risky, quality-controlled legal products.

    Unlike O’Malley, Sanchez does not necessarily believe that the best rolling papers are made from trees. Many cigarette and RYO paper companies, he says, use other fiber sources, such as hemp, flax, rice and bamboo, etc. These materials, notes Sanchez, are generally not inferior to base tree paper and in many cases cause less pollution.

    He cites the example of Roor, which is already distributed in Germany without referencing cannabis. “We only develop our business in strict compliance with national regulations. However, as soon as legislation is made more flexible, we will develop our strategy accordingly.”

    For O’Malley, European cannabis is a promising horizon. “The way it came from the West Coast here to New York and then to Europe is a prediction we made long ago that is playing out,” he says. “After a rolling papers brand matures, unless there is a major innovation, like introducing a curved version, it often becomes a pseudo-lifestyle brand to engage already loyal customers. This opportunity is huge as the political engagement behind legalization activates communities, as it will in Europe in the coming years and as it will continue [to do] in the U.S. So, even though tobacco is the big opportunity in actual use of the products, the cannabis culture stuff will be rich with opportunities for content creation for rolling paper brands.”

  • The Leading Edge

    The Leading Edge

    Photos: Republic Brands

    Building on a formidable heritage, Republic Brands is keen to capitalize on the latest market trends.

    By George Gay

    Here’s a challenge. Try to figure out what “category” was being referred to when, during an interview with Tobacco Reporter in August, a company executive said, “I think it is the most exciting time to be in the category in the U.S.”

    If I didn’t know the answer to this puzzle, I think I would have guessed at something like nicotine pouches. I certainly wouldn’t have gone for a combustible product. But the executive was talking about the roll-your-own category in general, and, in particular, about Republic Brands, which in July changed its name from Republic Tobacco. “It’s rare that you are able to become part of a company like Republic with such great ownership, such iconic global brands and an amazing supply chain in a category that is becoming more and more meaningful in the U.S.,” said Paul Marobella, the former chairman and CEO of Havas Creative in North America who joined Republic as president and chief marketing officer on July 1, having previously acted as a consultant. “And I know that everybody here is really excited about our future. You’re going to see some great new products from us—some innovation. I think people will come to know the Republic Brand name more than they knew Republic Tobacco in the past: We are going to focus more on that. And we’re building a great place to work and a place that really creates iconic brands. That is the spirit here at the moment.”

    Marobella was speaking mainly about the U.S. market, though some of his underlying ideas have wider resonance, which is appropriate given the global reach of Republic. The company, owned by Donald Levin, claims to be the largest RYO company in the world. It has subsidiaries in Canada, continental Europe and the U.K. operating under the name Republic Technologies, seven manufacturing facilities across North America and Europe, and a sales presence in 120 countries.

    But for the moment, the focus is on the U.S. where Marobella has taken on the responsibility for aligning Republic’s brands and brand marketing with specific consumer segments across the U.S. He exudes enthusiasm for this challenge, and it is easy to get swept along by such an experienced brand marketer talking of consumers choosing new pathways through changing cultural environments with products that combine brand heritage with sustainable materials.

    Paul Marobella

    A Growing Market

    But he has a point. If you step back and take a moment to reflect, there is clearly something going on here—in the U.S.—and now. The first thing that should be kept in the background is the size of the U.S. market. This was brought home to me when Marobella mentioned E-Z Wider, one of the most recent brand additions to the Republic portfolio of rolling papers, acquired along with the Joker brand by Levin about three years ago. One of the areas where E-Z Wider has a strong presence comprises the Eastern Seaboard of the U.S., which, the internet tells me, has a population of about 118 million people, slotting it into about 12th position on a list of the most populous nations of the world. The plan is to take E-Z Wider national, as one of the company’s growth and emerging brands.

    Importantly, too, there are signs that within the huge U.S. market—the total population is about 328 million—the RYO sector is growing. Hard data on the sector is more difficult to come by than is that on factory-made cigarettes, for instance, but Marobella said Republic was seeing growth both in the incidence of people rolling their own and making their own with papers, cones and tubes. The cone sector, which Republic entered about three years ago, was particularly vibrant, he said, before adding that bamboo cones and bamboo papers were “flying off the shelves.” At the same time, indirect evidence for such growth is being provided, too, by an increase in new competitors and new brands entering the market and by what Marobella described as the excitement currently evident in the segment at trade shows.

    Another important point to keep in mind is that, whereas the market for factory-made cigarettes, which are locked in with tobacco, has nowhere else to go, the market for RYO and make-your-own accessories, such as rolling papers, cones and tubes, while heavily underpinned by tobacco consumption, is expanding beyond tobacco. Marobella is careful to emphasize that Republic wants its products to be used only with legal materials, naming tobacco, hemp, CBD and herbal products generally. But there is no getting away from the fact that smoking marijuana is becoming legal in parts of the U.S. and is already so north of the border, across Canada. And Marobella conceded that, in respect of marijuana, U.S. federal legalization would be great for “the RYO category in which Republic’s brands play such an important part.”

    What I wrote above about factory-made cigarettes having nowhere else to go might be taken to suggest that the manufacturers of factory-made cigarettes also have nowhere they can go beyond tobacco. But such a suggestion would be misleading. Leading manufacturers in this field are making huge efforts to move away from combustible tobacco toward all manner of new-generation products, and, given their initial success is maintained, it is conceivable their departure will leave behind a considerable vacuum, part of which could be filled by RYO products—initially tobacco based, but later, perhaps, underpinned by other smoking materials.

    And on top of these marketing opportunities for RYO brands, you can add emerging retail possibilities, such as ecommerce. Marobella told me that new highly innovative delivery services were coming on line in the U.S.: services such as GoPuff, which will deliver to your house in 25 minutes or less. Despite its name, GoPuff delivers a huge array of products that happens to include a wide range of tobacco and nicotine goods from charcoal heaters for hookahs to rolling papers to e-liquids. “You have consumption lounges being legalized in certain cities,” added Marobella. “Las Vegas is one where you will be able to consume herbal products on-premise. You have subscription delivery boxes in which papers and cones are sometimes included.”

    Bamboo papers and cones have been flying off the shelves, according to Republic Brands.

    A diverse consumer base

    Marobella added, however, that while more and more routes were being opened to the consumer and while it was important for Republic to keep abreast of these new opportunities, the company’s core business was with, and would remain with, distributors, wholesalers, convenience stores, c-gas stations and smoke shops.

    I guess that, to a certain extent at least, the route to the consumer needs to be allied with the type of consumer you are aiming at. So who are these consumers? Well, the traditional RYO consumer is still a male manual worker who likes to roll tobacco and smoke without having to take out a loan, and that is unlikely to change greatly soon. But, partly because of new opportunities provided by herbal materials, more women are entering the RYO category, and, in fact, some estimates have women accounting for nearly 40 percent of the RYO market attributed to herbal material use. In part, too, the RYO category has opened itself up to new entrants with products such as cones that don’t require people to be skilled in the art of rolling. And then there is the question of cultural changes. “I think that in the U.S., people are seeking to find moments to themselves, they are seeking to relax, seeking to enjoy the little things in life more and more because of what is happening in our world,” said Marobella. “And through our research, we have seen that people use our products to help them relax.”

    The JOB brand is said to be about creativity.

    Of course, to satisfy the needs of a diverse consumer base, you need a wide-ranging portfolio of products, and Republic seems to have just that. The company was started in 1969 by Levin, who at that time owned one of the most famous smoke and head shops in the U.S., Adams Apple in Chicago, and a smoking accessories business operating under the same name. He no longer owns the shop but still owns the brand name, which is used for the company’s ecommerce business selling on Amazon, and which appeared as recently as August in a TMA trademark report relating to RYO-related and MYO-related products. Since those early days, Levin has been acquiring and building a formidable brand portfolio, which includes OCB, said to be one of the largest global brands and one that is the company’s all-natural brand, carrying the tag line “One with Nature.” OCB, like many rolling-paper brands, comes in a dizzying number of versions, but Marobella says it is probably the company’s most expansive. “We have a whole line of different sizes, fibers, some that are made of flax, some that are made of wood pulp,” he said. “OCB has organic hemp, bamboo; we have a virgin unbleached paper and cones as well.”

    While OCB is about being one with nature, the JOB brand, which has been in existence since 1838, is said to be about creativity—you’ve almost certainly seen the fine print posters—and cultural relevance while E-Z Wider, apparently named after the film, Easy Rider, is Republic’s outlaw or rebel brand.

    It is not possible to list all the brands and, especially, all the product styles within each brand, but I should point out that, despite such a large existing portfolio, as is mentioned at the start of this piece, there is more to come. Marobella wasn’t going to be drawn on specifics, but he did say that, across Republic’s portfolio, there would be more products made of organic hemp, which, by the way, is sourced from Champagne, France, from the same soils that produce fine champagnes. “You’ll start to see some unique sizes of products, such as cones; you’ll start to see some brands that are targeted at very specific demographics and consumer segments in the U.S.,” he said. “You might see some different colors of papers, some different patterns of papers that would appeal to a different 21+ demographic in the U.S., maybe a female demographic. There is a lot of innovation that is happening. We want to be on the leading edge of that.”

  • Paul Marobella Named President at Republic

    Paul Marobella Named President at Republic

    Paul Marobella (Photo: Republic Brands)

    Republic Brands has named Paul Marobella as its president and chief marketing officer.

    Marobella brings more than 25 years of marketing, brand and leadership experience developing award-winning strategies for renowned brands, including Jim Beam, Adidas and Dos Equis. Most recently, he led 2,500 people while at the Paris-based advertising holding company Havas as chairman and CEO of North America.

    While there, his teams won multiple “agency of the year” and “best place to work” awards while consulting on growth strategies for many of the world’s top brands. Prior to Havas, Marobella led a digital experience division of Accenture Interactive’s Wire Stone, consulting with brands such as Motorola, Conagra, Microsoft and Nike.

    Marobella is also active in providing opportunities to America’s inner-city youth as a sitting member of the National Hockey League’s Fan Diversity and Inclusion Council, an advisory board member to the Chicago Blackhawks Foundation and Chairman of the Inner-City Education Program in Chicago.

    “Paul’s world-class expertise in transforming global brands, increasing cultural relevancy and propelling enterprise growth brings a valuable opportunity to our multinational company as we enter the next era of the roll-your-own category,” said Don Levin, chairman and founder of Republic Brands, in a statement.

    “It’s a rare opportunity in one’s career to join an established, growing company like Republic with our iconic stable of brands and appetite to capitalize on the once-in-a-lifetime growth opportunities the rolling category will experience over the next decade. Don has built an amazing company with incredible people; I am very excited for our future,” said Marobella.

    Marobella plans to transform its consumer product brands alongside monumental market shifts and will lead Republic’s 50-year vision to meet rising demand amid rapid expansion.

  • Republic Tobacco Rebrands

    Republic Tobacco Rebrands

    Image: Republic Brands

    Republic Brands has changed its name to propel its brand portfolio and introduce new product offerings to address the rapidly growing rolling and make-your-own market. Formerly Republic Tobacco, Republic Brands is a global leader in all-natural rolling papers and premium accessories for the roll-your-own (RYO) and make-your-own (MYO) markets. Building on its legacy of making OCB, JOB and E-Z Wider, plus RYO/MYO mainstays TOP, Gambler and Premier, Republic Brands says it is poised to lead the ongoing transformation in rolling products, accessories and merchandise.

    “Consumers appreciate being able to take a moment to enjoy the little things in life, which is what rolling your own is all about,” said newly appointed President and Chief Marketing Officer Paul Marobella. “The historic shift in market dynamics we are now experiencing in the United States and beyond opens valuable growth opportunities and the ability to connect with consumers in new ways.”

    Most recently the chairman and CEO of Havas North America, Marobella brings decades of executive experience guiding growth for large enterprises and consulting with 21st century marketing leaders in data-driven growth for iconic brands such as Coca-Cola, Adidas, Progressive, Jim Beam and others.

    “The creation of Republic Brands represents a massive opportunity for our multinational company that has built its reputation as a trusted manufacturer and developer of sustainably sourced products,” said Don Levin, chairman and founder of Republic Brands. “We’re on the vanguard of the next era in the roll-your-own category building on our core portfolio and our high-growth brands such as OCB, JOB, TOP, Abadie, JOKER and E-Z Wider.”

    With 200 years of rolling paper legacy built into the company’s culture, Republic Brands has built a vertically integrated supply chain “from plant to puff.” Republic Brands continues to deepen its investments in brand and product lines featuring sustainable materials and pursue innovative partnerships with today’s leading artists, creatives and influencers who share the Republic Brands ethos.”

    To fulfill the brand’s vision for the next 50 years, Republic Brands will leverage its global production footprint that upholds ISO 9001, 14001 and 45001 and GMP standards of sustainability, ethics and environmental responsibility to meet rising demand for cones, rolling papers, rollers, injectors, accessories and other products. Through the work of Republic Brands’ dedicated sales and service staff, the company is rapidly expanding into omnichannel retailing while maximizing existing channels to bring its brands into the hands, hearts and minds of consumers flocking into the alternative RYO/MYO space.