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Federal Cigar Celebrates 94 Years

Published Friday May 29, 2015

Author MATTHEW J. MOWRY

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A bunch of old guys sitting in stuffy leather chairs in an ill-lit room and air choked with plumes of smoke may be what most people envision when they hear cigar bar. But the cigar bar at the 4,000-square-foot flagship shop of Federal Cigar in downtown Portsmouth blows that anachronistic assumption away with a sophisticated setting for the modern cigar aficionado.

When Federal Cigar moved to its new location in 2014, the cigar retailer quadrupled its square footage and added a cigar bar. Housed in a 1700s-era mercantile building, the shop mixes old-world charm with contemporary rows of sleek glass-fronted, temperature-controlled humidors, showcasing 1,500 hand-rolled cigars from more than a dozen manufacturers. Cigars range from the affordable to the rare and exclusive that can set buyers back a few Benjamins. Venturing downstairs from the shop, patrons enter a swanky bar that, yes, has leather seats, but with a definite modern vibe, granite table tops and 60 humidor lockers where customers store their stogies.

Co-owner Rick Gadway says all lockers are rented, and there is an extensive waiting list. While the bar has the feel of a private club, it is open to the public. And the chic setting is attracting a variety of patrons. In fact, 40 percent of it customers are women, says Bar Manager Scot Johnson, explaining the bar invested in amenities that female patrons would appreciate, such as purse hooks and an attractive women’s bathroom.

To ensure a welcoming atmosphere, Federal Cigar spent a sizeable chunk of change (but would not reveal the exact investment) installing a state-of-the-art exhaust system that brings in fresh air and can clear the bar completely of smoke within three and half minutes. Sensors detect smoke and activate the exhaust system.

Such investments are paying off. The cigar bar, which seats 80, often reaches capacity, says Johnson, and it’s not unusual to see non-smokers accompanying cigar smokers.

“Cigar smokers are ostracized. They are looking for a place where they are welcomed,” Gadway says of the driving force behind the idea. Though he doesn’t divulge financials, he says there’s been a “significant increase” in business since it opened the new location. “Business has exceeded our expectations,” he says.

Celebrating its 94th anniversary, Federal Cigar now has shops in Dover, Epping and Plaistow in addition to Portsmouth. Gadway bought Federal Cigar, which has been in Portsmouth since 1921, in 2008 after years of decline.

A cigar smoker since he was 18, Gadway’s first foray into the business began after a “bad 90 days” at work. While borrowing and charging to make it happen, he opened a cigar shop in Dover in 2006, calling it Top Shelf Cigar. His day job at the time was managing a car dealership.

He woke up on his opening day to an 18-inch snowstorm, ringing in a mere $150 in sales. But it didn’t take long before he was making daily sales of $1,000 and turning a profit.

By 2008, Gadway realized he couldn’t sustain two careers and dropped the day job. That same year he opened a second shop in Epping and, when Federal Cigar came onto the market, Gadway saw an opportunity to keep a historic brand alive. Upon acquiring Federal Cigar, Gadway rebranded Top Shelf Cigar as Federal Cigar. For more information on Federal Cigar, visit www.federal
cigar.com.

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