4. A Touch of Mystique
There’s a reason - beyond sheer quality and craftsmanship - why certain cigars (Fuente Opus X’s, C.A.O. Extremes, and anything from that magical island nation of Cuba, to name a few) are so constantly in demand. It’s a little thing called mystique, hard to really define or put into words, but certain cigars - and certain cigar makers - just have a knack for it. Sometimes it’s as simple as limiting the supply to increase the demand; sometimes just making people wait creates added interest.
“A lack of accessibility definitely produces a mystique,” contends Nick Perdomo, Jr., the former air traffic controller who built his fledgling sideline business, Nick’s Cigar Company (now Tabacalera Perdomo) into one the hottest and fastest growing boutique brands in just the past few years. His exclusive Estate Seleccion series recently joined the category of coveted, hard-to-find brands, due to its limited distribution.
“Sometimes we can’t really give the customers everything they want, when they want it,” he admits. “We’re never going to ship out a product that’s not 110%. We just won’t do it. But consumers know when they do get one of our products, it’s going to be topnotch. And that’s what it’s all about.”
Like Perdomo, Toraño comes from a tobacco-industry lineage, and believes that in the case of boutique brands, a mystique is achieved by emphasizing the family feel. “At a time when there’s so much consolidation (in the industry), when we see monopolies coming in and buying the major brands, it’s important to give the consumer a little bit of a personal touch by letting them know there is a real family behind the name and product.” This is a tactic that seems to have worked well for many of the boutique brands, as evidenced by the household-word status of the Fuente, Padron, and Borhani family names among the cigar-smoking fraternity.
5. An Eye Toward the Trends
Going back to that whole market forecasting thing, it is unwise to ignore the trends in your chosen business. Survivors acknowledge them and react accordingly; leaders, especially in an increasingly competitive business, anticipate them and plan accordingly. Rocky Patel, a Los Angeles attorney and wine connoisseur who educated himself from the ground up in the cigar business before starting his Indian Tabac Cigar Company, took his cue from the wine industry. “I remember that about 20 or 25 years ago, we were all drinking rosés and white zins, maybe a Cabernet. Now we’re drinking reds and Shiraz and merlots. There’s a wide, diverse range of wines now, and I believe the same thing’s happening in the cigar industry. They’re looking for novelty, for unique flavor, for character. And they’re looking the hot, newest thing. In the marketplace, you’ve really got to have your feet close to the fire.”
On the other side of things, Allan Rubin, who started the Alec Bradley Cigar Company in 1996, saw a different niche developing: the market for flavored cigars. A longtime cigar maven who came to cigars by way of the import-export business, Rubin remembers, “We were seeing a growing market of female cigar smokers and novice cigar smokers just getting into the trend, and these were the people who wanted to experience more mild-mannered cigars. I spent about seven months personally trying to formulate a flavoring that was different from [the only other company that was doing flavored at the time]. We took out a lot of the tinny tasting chemicals, and put in substances that tasted and smelled good. All our flavors are FDA-approved. We’re very conscious about the quality of the products we manufacture. And that area of our business is still successful.” The success of their flavored brand has also aided Alec Bradley’s expansion into the premium cigar market, with its Occidental Reserve and Montero lines gaining popularity.
6. Versatility and Variety in Shapes and Sizes
“You can’t sell an automobile if you only have one style,” declares Bill Fader, chiming in on the importance of giving cigar consumers a variety of sizes and shapes to choose from. “You’ve got to have them all: two-doors, four- doors, convertibles, and SUVs. You’re not going to buy a suit of clothes if you only have one to choose from.” Though most cigar smokers are willing to experiment, they all have their preferred “regular” model. So it behooves anyone wanting to grab a wide range of smokers to have a wide range of options. Again, one’s own instincts and tastes are sometimes the impetus. “Shapes appeal to me visually,” says DeCourtivon, whose launch of the African Fuerte line marks La Luna’s first major foray into shaped cigars. “I never created shapes because I thought they’d sell more, I created them because I like them.”
Among the first of the modern cigar makers to incorporate box-pressed cigars into his company’s line, Cupido’s Kviatkovsky feels that shapes - many of them originating decades ago in Cuba, and only recently reintroduced - also evoke a nostalgic feel. “It just feels great in your fingers. A square cigar feels better than a round cigar, and it has a better aesthetic look.” He goes on to point out the current crop of shaped and box-pressed cigar lines being introduced by the larger manufacturers - suggesting that the pioneering boutique brands are leading the way, and affecting how the majors do business. Rocky Patel would agree: “What you’re seeing now in the marketplace are the smaller companies being very progressive, on the cutting edge, coming up with things that the big companies follow, in the areas of shapes, sizes, wrappers. They’re seeing us, and they’re noticing.”
7. Market Visibility, with a Personal Touch
“I’ve been in about 375 cities in the last 490 days,” says Patel, the pride in his voice tempered by a noticeable weariness. “We’ve had to carve ourselves an identity in a tough market. There are very few independent manufacturers left, and I figure the only way for your brand to become a contender is to get out there and get to know your retailers and the people who are smoking your cigars. So I’ve gone on tour. I’ve been to nearly every tobacco shop in the U.S., Germany, and Switzerland. I make it a goal to visit every retail store and do an event there.”
One of the most recognizable faces in the business, Tony Borhani the man has always been synonymous with Tony Borhani the cigar company. “Here I am,” he proclaims defiantly. “If I make a good cigar, reward me for it; if I make a bad cigar, punish me for it. I’ve had my name on the box and the band from day one, and it’s my responsibility and no one else’s. Bahia started as a one-man operation. I opened my first 50 accounts myself, all over the country. I still think it is the best way to promote your product - meeting your consumers, shaking hands with them, listening to their comments. You’re not going to get the right feel for the market having other people do that for you.”
Meiselman describes a personal relationship with dealers and consumers as “secondary only to the quality of the product,” adding, “It’s honestly the linchpin of our marketing. We know every account, we know the retailers, their needs and problems, what they’re doing with our product. For the smaller companies that started without those good relationships with their retailers, I really think that was their death-knell.”
“If people don’t see your flag being flown, it can kill you,” cautions Perdomo, who, like most of the boutique cigar leaders, credits the growth of his company chiefly to a dedication to quality, but acknowledges the importance of getting the word out. And sometimes the only way to do that is up close and personal. Scoffing at what he sees as a lofty “celebrity” status sought by some manufacturers, Perdomo puts it into perspective. “People don’t know me because I put my picture on the cigar bands, they know me because I pick up the phone and talk to customers, whereas a lot of guys don’t. Certain people don’t want to go out and meet their consumers, and that’s not the way I run my company. I like to meet the people who smoke our cigars.
“Remember the bottom line: I make cigars. I didn’t invent penicillin.”