PCA 2021: Day 0 Recap

This morning marks the start of the first-ever PCA Convention & Trade Show, at least in a name, as the event was formerly known as the IPCPR Convention & Trade Show, and before that the RTDA Convention & Trade Show.

And it’s a bit odd.

The last time we covered this event was June 2019 and 99 percent of the talk was about CigarCon, a planned consumer day for this trade show, which is otherwise only open to people who work in the cigar business. CigarCon was canceled in August 2019; in January 2020, four of the largest exhibitors for the trade show announced they weren’t coming to the 2020 trade show; and then a global pandemic locked down the world and canceled the 2020 event.

Yet, in the midst of an often challenging 2020, the U.S. cigar industry had a booming year. After a rough 2019 due to an oversupplied market, the tables flipped and cigar companies—particularly those who make and sell cigars—had fantastic 2020’s, which is largely rolling into 2021. And yet, the trade show is clearly not poised for its best year.

It’s one of a number of interesting juxtapositions I’ve contemplated over the last few days. For someone that spent most of the last 14 months not seeing much of anyone, it’s incredible to think about the hundreds of industry colleagues I’ve gotten to see over the last few days. And yet, I continually think more about the people and things I’m not seeing this year and why.

Here are three, err four, big thoughts heading into the trade show:

1. The Trade Show Floor is a Lot Smaller — My best guess is the show space is about 35 percent smaller based on comparing the size of the 2019 map versus the 2021 map. I should note, that’s more or less the space of the floor and not the amount of square footage the PCA sold. There are a number of factors for the massive reduction, most notably a rather long list of companies who were at the 2019 trade show who aren’t here in 2021. The reasons for their absences vary quite a bit but the collective absences have made for a very different trade show floor.
2. The “Big” Companies are Missed in a lot of Different Ways — It’s not just that four of the largest booths from 2019 aren’t here for the 2021 trade show, it’s so much more. It also means that hundreds of people that otherwise would be here—the staffs for these companies—aren’t here. The number of new products debuting at the show is way down. The sponsorship banners look different. And the feel of the show is just different. I definitely miss a lot of the conversations I would otherwise be having with many of the people who work at those companies, though a few people from those companies are here in Vegas.
3. Vegas Has Been Different — There’s a UFC card tomorrow night featuring Conor McGregor, Dave Chappelle is performing with Joe Rogan, Donald Trump is supposed to be in town—and yet most of my experience in Vegas this week has been one of a city that is clearly not at its pre-COVID levels. I’ve been told that the weekends in Vegas are similar to pre-pandemic levels, but the weekdays are massively different. Restaurants are hard to get into because of staffing issues, some stores are stocked but not open, lines are longer, but not because the venues are full. And looking around—whether it’s Las Vegas Blvd. or the hallway of a casino—it just seems a bit subdued.
4. “Why are people giving discounts on back-ordered products?” — If the cigar manufacturers can’t break out of their heavy discounting model (for no reason) in 2021, when will they?