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.