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Weathering the Storm
(continued)

CAO INTERNATIONAL
Cano A. Oxgener, the president of Nashville-based CAO International, has been in the tobacco industry for 30 years, an accomplishment certainly worth celebrating. And with the release of the CAO L'Anniversaire Maduro last year, celebrate is just what Ozgener and his family-owned company did. One year later, the party endures, as CAO L'Anniversaire Maduro has become one of the hottest cigars on the market.

When asked if he was apprehensive about introducing a new cigar when the industry was reeling from the excesses of the boom years, Ozgener explains that several factors made him confident about the move. "We believed tremendously in the blend that was developed for the L'Anniversaire Maduro and, because it was our 30th anniversary, and the first time the RTDA (Retail Tobacco Dealers of America) show was held in Nashville, we were very confident," he says. Ozgener's confidence has clearly paid off for his modest-sized company, which also produces the mild-to-medium-bodied CAO Gold and the more robust CAO Black Label.

In developing a cigar to celebrate CAO's 30th anniversary, Ozgener spent three years working with several different factories to find the cigar he was looking for. "I was open to many ideas," he relates, "but coming up with the ideal blend is a combination of art, science, and luck. Of course, we don't leave everything to luck, but it helps."

Ozgener attributes the success of CAO Anniversario Maduro to several strategies, including a grass roots promotion where company representatives personally delivered the cigars to every store where the cigar was being introduced.

Now that CAO has three established cigar brands, the challenge for Ozgener is maintaining the quality and consistency which, according to him, is the key to succeeding in today's market. "You can spend all the time and money you want developing a blend, but you have to be able to maintain that blend," he says. To do this, CAO does not make more than 30,000 per month of any of their cigars, which is just the way Ozgener prefers it. "We never intended to be a large company. We prefer being small," he says with pride.

Ozgener is optimistic about the future for his company and the cigar business in general. "I see good things for CAO in the next few years," he opines, "as long as we maintain the quality and service that we have already established. Overall, quality will increase ... Cigar smokers will be rewarded by getting better cigars for reasonable prices. You won't see people jumping into the cigar business who don't know anything about cigars, like we saw happen in the last few years."

CUPIDO
If starting small and having modest goals is the definition of a boutique brand, then Cupido Cigars - based in Florida, with offices in Southern California and production facilities in Nicaragua - certainly fits the bill. Cupido debuted in 1996, with but a single shape in its line, a Churchill, with an initial production run of 66,000 boxes.

The importance of keeping things simple is not lost on Yossi Kviatkovsky, a co-owner of Cupido, who knew the key to surviving the market glut was moderation and tight quality control. "We've been able to get through the slowdown because our objective has always been to occupy a small amount of shelf space in a store," Kviatkovsky says. "All I ask of a store owner is to give me one to three feet of shelf space, and if I do my job properly regarding advertising and packaging, my cigar should move by itself."

Cupido's marketing strategy prioritizes relations with tobacconists, while also focusing on maintaining Cupido's image as an upper-echelon cigar by never selling it anywhere other than in fullser-vice tobacco shops. "We want everybody who markets our cigar to make money," Kviatkovsky explains. "We guarantee every single cigar we make. If it doesn't move off the shelf, we would prefer to buy the cigars back rather than have them end up on a half-price shelf. To this day we haven't had to buy back one of our cigars."

Kviatkovsky's other key strategy is informing tobacconists; about the importance of boutique brands as a tool for strengthening their businesses. He firmly believes that a tobacconist who doesn't recommend boutique brands is merely creating more customers for discounters. "If a tobacconist introduces a customer to a boutique brand that's not readily available elsewhere, then he has introduced the customer to a unique experience that the customer will have to return to the tobacconist to get," Kviatkovsky emphasizes.

Cupido has expanded slowly, with two additional sizes made in limited runs: a box-pressed robusto (5.5 x 50) and the "Torpito," a mini-torpedo (4.5 x 54). The unique aspect of the Cupido line is that each size has its own blend and corresponding flavor profile. "We don't take a Churchill and cut it down to make a robusto. [Our approach] is more masterful, and gives us a specific niche in the marketplace," Kviatkovsky says.

This summer Cupido adds another member to its unique line when it introduces the Toro Negro (5.5 x 52), which will feature a maduro version of the new Havana2000 wrapper grown in Nicaragua. Kviatkovsky exudes confidence about the new cigar. "The new wrapper is twice as thick as an Indonesian wrapper, so it will impart that much more flavor," he explains. "The Toro Negro will be heartier than our other cigars, but in the Cupido tradition, it will be very smooth and flavorful." Only 28,000 boxes of Toro Negros will be made.

As with many of his fellow boutique cigar manufacturers, Kviatkovsky is upbeat about the future. "So many people have learned about cigars during the boom, that the market should stay healthy for many years to come," he says. "We'll be just fine as long as we focus on doing what we do best, which is making a premium cigar for the smoker who wants the best." Keeping the discerning consumer in mind has been the credo for Cupido, and for all manufacturers of boutique brands that are still surviving and thriving.

MORE TOP BOUTIQUE BRANDS
BAHIA by Tony Borhani
Made in Costa Rica, Bahia is one of the most popular boutique cigar in the U.S. The latest additions to the line, the Bahia Gold and Bahia Gold Maduro, are particularly outstanding smokes.
BUCANERO
Introduced in 1998, this top-notch offering from Costa Rica comes in natural or maduro, and offers an incredibly smooth smoking experience. This promising newcomer is garnering a lot of attention.
CARLOS III
A Honduran-made cigar manufactured in old-style perfecto shapes. Despite a somewhat rough appearance, this spicy smoke appeals to lovers of rustic, earthy cigars.
898 COLLECTION
Oscar Boruchin, owner of retail giant Mike's Cigars, has this smooth and lovely cigar made for him in very limited numbers. A refined, yet flavorful cigar, with outstanding construction.
CUSANO HERMANOS
Try the Connecticut shade version for a light smoke, or the heartier maduro for more full-bodied fare. Also try the Cusano Estate Reserve for another high-quality offering from this company.
EL ORIGINAL
Newly released by famed Cuban Blender Santiago Cabana through Key Largo’s Island Smoke Shop, the EL ORIGINAL is already establishing a Cuban-like reputation with it’s complex six-country blend of hard-to-find tobaccos.
EMIGRANTE by Santiago Cigar Co
This Dominican-made brand has been gaining fans since its introduction in 1996. It's rich and cedary, with a complex, medium-bodied style.
ESTAVAN CRUZ
Introduced in 1998, this maduro cigar is made in Costa Rica and has a smooth, rich, complex flavor. Maduro lovers take note!
HOJA CUBANA
A beautiful rosado wrapper covers this rich and earthy cigar. A top-of-the-line smoke that offers a classic Nicaraguan flavor profile.
IMPERIO CUBANA and E TRINIDAD by Antillian Cigar
These two micro-brands are made in extremely limited quantities by the Sosa family in its small Miami factory. Both are connoisseur's delights.
JOSE PACO
Another Nicaraguan beauty, with rich and complex layers of earthy, sweet-spiced flavor. The new torpedo is a worthy addition to the line.
LA PERLA HABANA
Complex and flavorful, the La Peria's spicy, earthy character appeals to seasoned smokers looking for more oomph in their smokes. Try the fabulous torpedo.
LA PLATA
The pride of Los Angeles, this little company continues to crank out impressive smokes. Especially recommended is their maduro. Yum!
MAYORGA
This popular boutique brand boasts smooth and rich Nicaraguan tobacco, and now comes adorned with the outstanding Havana2000 wrapper.
NEXT GENERATION
A spicy, moderately complex Dominican cigar, with plenty of character. Don't let the rustic exterior scare you away - this cigar has a very loyal following.
PUROFINO
A high-quality fine from Honduras that comes with several blends, ranging from mild to strong. The bold and brash PUROFINO DOM is an especially unique cigar with enough strength to appeal to Havana smokers.


SMOKE - Summer '99
TopCubans.Com

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