In 2013, the century-old Avanti Cigar Co. will mark another evolution.
The North Scranton-based company will relocate to Dunmore with a new partner and new business plan.
Energy executive and Scranton native Tom Karam has joined the cigar company as a partner. After the new year, the company will move into a part of the former Thomson Consumer Electronics building.
Mr. Karam, a former executive with Southern Union Co. and now a member of the board of Williams Partners LP, is familiar with Avanti, owned by his in-laws. Avanti President Dominic Keating is Mr. Karam's brother-in-law.
"The company faces physical constraints and other challenges that could affect its future viability," Mr. Karam said. "We are going to remake the company, preserve jobs and make money."
Initially, Mr. Karam was asked to consult with the company, offering a fresh set of eyes on a longtime business.
"There's a lot of emotions involved," Mr. Karam said. "We looked at it as a business with an eye to grow the business for the next generation."
Mr. Karam recognized some inefficiencies of the operation, with production spread out on three floors, for example. Loading docks were inadequate, and there were other problems. While the company is busy, with about a million cigars on order, Mr. Karam felt the company wasn't making the profit margins it could.
The company also was missing opportunities, Mr. Karam thought, such as Internet sales or social network marketing. The company wasn't investigating new brand extensions or new product lines. Permutations of the famous Parodi cigar, such as the bourbon-infused Ram Rods and the anisette-flavored Avanti, helped sustain and grow the company in the past. But what's next?
For a generation, the company known as Parodi was housed on North Main Avenue in West Scranton on a site that would later house Brunetti's market. In 1944, a fire destroyed the building, and the company was fortunate to find the location down the road in North Scranton.
The oldest part of the building dates to 1899 and at the time housed a variety of businesses, mostly for the garment industry.
"They were thrilled and grateful to able to get into a building," Mr. Keating said. "But it was never intended to be a permanent location."
But it worked out that way, with the company growing to fill the entire building. The building has outlived its usefulness. The dark, labyrinthine, 60,000-square-foot building now has a lot of unused space.
Winter, a slow time in the cigar business, is the best time to move. After the company fulfills existing orders, it will stockpile inventory and probably operate in two locations for a time during the move.
The company will put the North Scranton location up for sale. Leasing about 25,000 square feet will significantly reduce occupancy costs, and moving production to one floor in a modern building will improve work flow, Mr. Karam said.
"We looked in Scranton, and it was our preferred location, but this building offered the best opportunity," Mr. Karam said.
For Avanti, it's the opportunity to evolve while updating its image and approach.
"Anywhere else, the headline would be about a facility closing or moving," Mr. Keating said. "Avanti remains a family business with a bright future, and we look forward to remaining in Northeast Pennsylvania."
Contact the writer: dfalchek@timesshamrock.com