Small Batch Traders Plans New EU Warehouse

Small Batch Traders B.V., a Dutch cigar importer and distributor, has announced that it plans to open a new warehouse in Elst, The Netherlands, as it looks to grow its business.

The company says the new warehouse is scheduled to be open in September 2023. This new facility coincides with the upcoming introduction of track and trace rules for cigars throughout the European Union. The EU’s track and trace rules are already in effect for cigarettes and fine-cut tobacco sold in EU countries; those rules will go into effect for cigars, pipe tobacco and snuff in May 2024.

As the name implies, track and trace will require cigar companies to produce extensive records about their products throughout the distribution processes. In short, every individual box, bundle or pack of cigars will need to have a unique identifier that can be scanned by the various businesses involved in the movement of the products and regulators. In addition, each time a box or bundle of cigars moves from one part of the chain to another, that movement will need to be recorded so that the barcode identifier shows the movement as the product goes from its producer to importer to distributor to retailer. The various stops must be recorded and uploaded to the system within 24 hours of movement.

While many larger importers and cigar companies have already invested in the software needed to comply with track and trace rules, it’s unclear what many smaller companies will do. Small Batch Traders B.V. and some of its competitors are beginning to market track and trace compliance as a potential benefit for these smaller cigar companies.

“Taking care of sales, marketing, customer service and demand planning of handmade cigars globally for my former employer I know it’s tough for manufacturers and brand owners to cope with all the legislation we have here in Europe,” said Stijn Elbersen, founder of Small Batch Traders B.V., in a press release. “Every market has its own specifics concerning excise calculations, tax stamps and warning labels. On top of this, we will have the EU Track & Trace which will be in effect from May 2024. This will close the door for many and increase the barrier to enter Europe. I have a love and passion for handmade cigars and my vision is that Small Batch Traders will be a ‘one-stop-shop’ for logistics and distribution in Europe for independent handmade cigar brands.”

Previously, Elbersen worked at Scandinavian Tobacco Group, one of the largest cigar companies in the world. Small Batch Traders B.V. is best known for its work with West Tampa Tobacco Co., but it has worked with others and is seeking to grow its roster of clients.