By Pawel Binczyk

The New Hampshire Liquor Commission has implemented an update that permits hookah bars to sell alcohol, something urged by industry for years. With the recent passage of HB 1018, effective October 1, 2024, cigar bar licensees now have the exciting opportunity to incorporate hookah and hookah-related products into their offerings, while standalone hookah proprietors have the ability to sell alcohol without meeting cigar sales minimums. This is a welcome change for licensees looking to diversify their product mix and attract new patrons, as well as for the immigrant communities that have unsuccessfully attempted to start hookah bars in the state for years.

What HB 1018 Means for Cigar Bars
Under RSA 178:20-a, HB 1018 allows on-premises Cigar, Beverage, and Liquor Licensees to offer hookah products, which can now be included in the calculation towards the 60% gross revenue requirement mandated by the license. This change enables cigar bars to broaden their appeal and create a more inclusive atmosphere that caters to both cigar and hookah enthusiasts alike. With this inclusion, it finally creates a profitable path forward for hookah bars that can sell alcohol and hookah for indoor consumption without also having to meet a 60% cigar sales revenue requirement.

The Value of Hookah Sales for Cigar Bars
Hookah services offer a social and shared smoking experience that complements the traditional cigar lounge ambiance. By adding hookah to the menu, cigar bars can attract new clientele, including those who may prefer hookah over cigars. This increased diversity in offerings can drive sales, create new promotional opportunities, and encourage longer visits from patrons seeking a more varied smoking experience. It will also permit a new type of establishment to open in New Hampshire. Traditionally, hookah bars have not survived in New Hampshire due to their inability to meet cigar sales minimums. This change will make those establishments available to the communities that have sought for years to open them up.

Next Steps
With this new legislation in place, now is an excellent time for cigar bar owners to consider how they might incorporate hookah services into their existing offerings. Start by reviewing the full text of HB 1018 to understand the specific guidelines and ensure compliance. From there, assess your space and plan for the equipment, products, and training needed to introduce hookah services successfully. Individuals looking to open hookah bars in New Hampshire can now apply directly for cigar bar licenses without having to endure provisional licensing periods to ensure that they can meet unattainable cigar sales quotas.

Conclusion
The New Hampshire Liquor Commission’s recent update is a a bright spot where regulators and legislators got together to respond to industry needs and support for business innovation. For cigar bars, this change presents a valuable opportunity to expand offerings, engage a broader audience, and enhance the customer experience. For hookah bar proprietors, this change is a long-awaited vindication after years of policies designed to exclude them from participating in the state’s on-premise liquor industry.