Cigarette maker Wellstone says Person County a perfect fit
There is a new business operating in Person County, and if key company figures have anything to say about it, Wellstone Filters will be a part of the economic landscape here for a long time.
Jeremiah Hand, chief executive officer, said, "We moved our company to this area for essentially two reasons: it is the heart of tobacco country and it provides a talent pool with an unmatched work ethic. Our company is driven by a spirit of innovation; that spirit requires an extraordinary workforce," and according to Hand, Person and surrounding counties offer the knowledge, skill and willingness to work hard that is needed to get a new company off and running.
Having a workforce like that of Person County and the opportunity to work with U.S. Flue-Cured Tobacco Cooperative made the decision to base Wellstone out of Timberlake an easy one, Wellstone Chief Operating and Financial Officer Sam Veasey said. >>
"It’s a win-win for this county," said Person County native David Gentry, who serves as local sales representative for Wellstone "and as we get going here, we’re going to hire more people."
The company plans to hire mostly local folks, like Gentry, and hopes the company will experience the growth needed to add employees.
Wellstone Filters moved into space it leases from the U.S. Flue-Cured Tobacco Cooperative in December 2004. It currently employs about 25 people. Its mission is to produce the highest quality cigarette at the lowest possible price. Part of that high quality comes from new filter technology, according to Hand.
"The two least expensive components of a cigarette are the filter and the tobacco," he said. "Filter technology has not really changed over the last 60 years and cigarette tobacco quality has declined. As tobacco companies' market share has been declining, they have been cutting costs. Yet cigarette prices have risen dramatically."
Hand said Wellstone's true-value model is changing that landscape. "Wellstone utilizes patented, cutting edge filter technology and the highest quality, 100 percent pure and natural tobacco, with no ‘fillers’ and no reconstituted or artificial tobacco – and we offer our product at a price significantly less than other brands," he explained. "Our mission is simple: deliver the highest quality product at the lowest possible price."
As an example, Hand said, "one can look at Kraft Macaroni & Cheese. Over the years, Kraft has sought to lower the cost to manufacture their product. Although they claim to be the ‘cheesiest’ product, they don't use ‘real’ cheese. But wait, Kraft Mac and Cheese generally sells for almost twice as much as Wal-Mart's brand which ‘is made with real cheddar cheese.’ Which product would you suggest?"
He said Wellstone’s cigarette tastes better than any other on the market does. While the company’s philosophy, according to Veasey is, "If you don’t smoke, don’t start, and if you do smoke, you should quit," Wellstone hopes to offer a brand of cigarettes to current smokers that will provide good taste at a competitive price.
Veasey spent 34 years with the Liggett Group in Durham before retiring in 2001. After a few years, however, he said he "got bored," so when Hand contacted him about starting up a new tobacco company, "I was a happy camper."
Veasey said he and Hand "felt a moral obligation to bring a reduced risk product to the market," although Wellstone does not market its cigarettes or filter as reduced risk. Instead, the company focuses on taste and price.
Hand, a native of California, moved from New York to Chapel Hill with his wife, Carla, who, with her father, Anthony Cerami, developed the Wellstone filter that removes some toxins from cigarette smoke. Hand’s professional career has included work with biotechnology firms.
Wellstone’s products, which include regular, menthol and lighter versions, were introduced to the public in January. Gentry said stores in North Carolina, Virginia and South Carolina have quickly called back for additional orders and sales overall seem to be going well.
