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Davidoff vs. The FDA
Davidoff is among those cigar companies fortunate
enough to have products that will be grandfathered into
the FDA’s plan. Its premium cigar portfolio covers all of
the price points that will help it move forward. There are
premium bundles under the Cusano brand, fresh-pack
cigars for the convenience channel and private label
brands for brick-and-mortar stores, as well as mail-or-
der and distributor channels. Davidoff will also build
on the momentum and growth it has seen over the past
few years with its core brands—Davidoff, Camacho and
Avo. At full view, Davidoff offers a full range of products
in terms of price, origin and intensity for its appoint-
ed merchants and other tobacconists. It’s also increased
its retail footprint with new Davidoff-branded stores, li-
censed boutiques and Davidoff Lounges.
The FDA regulations have forced Davidoff on an un-
expected and challenging course, but it’s one the compa-
ny doesn’t plan to shy away from. “Davidoff of Geneva
USA is absolutely determined to be in good shape on the
other side of this FDA challenge and we will work with
our industry colleagues and customers to get the best
outcome possible for the entire premium cigar industry,”
says Young. “I truly am incredibly proud of my team,
my colleagues and our partners in terms of how we have
embraced the challenge.”
Young and his team have adapted as best they can to
the challenges set forth by the FDA in recent months.
When asked how exactly the new regulations have
changed how they do business, Young responds that first
and foremost the FDA has forced those at Davidoff to
learn firsthand what other previously regulated tobac-
co products and companies have been going through
for years. Young and his team have spent an incredible
amount of time trying to explain to the government and
lawmakers the difference between cigarettes and premi-
um cigars, a necessary step toward getting an exemption
for premium cigars or regulation that makes sense.
Davidoff’s Indispensable
Business Partners
While important, FDA compliance is just one focus of
Davidoff’s overall mission and strategy going forward.
Another important part of the company’s marketing
plan is nurturing strong relationships with its retail part-
ners. Davidoff sees itself as an indispensable business
partner to its customers, beginning with its appointed
merchants. This has been part of Davidoff’s marketing
initiatives since 2012 and has grown more important in
the years following.
“The Indispensable Business Partner program was born
out of a study we conducted comparing the relative per-
formance of our appointed merchants with the degree to
which they executed key consumer activities such as events,
merchandising, assortment, training and education, store
look and its feel,” Young says. “We found very compelling
learnings out of that study and, in collaboration with our
Retail Advisory Board, set about laying out our strategic
priorities in terms of channel and customer development,
aligning significantly increased resources, tailoring game
plans by account and, finally, building a customer incentive
program and a merchant recognition program—the Gold-
en Band Awards, our version of the Oscars.”
The Cigars of Past, Present and Future
In addition to working closely with its merchant and re-
tail partners, Davidoff also has invested a lot of time and
marketing efforts into its core portfolio. The company
has clear strategies and plans in place for its Davidoff,
Avo and Camacho brands, which include identifying
each brand’s message to consumers and determining
how each brand will be marketed differently to continue
to thrive in today’s marketplace.
“We have done some important work on the balance
of the portfolio and will continue to do that going for-
ward,” Young explains. “The FDA has disrupted some
of those plans for now, but we have a portfolio that is
stacked with very good cigars, produced under a set of
standards admired and respected by the industry, our re-
tailers and consumers.”
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The U.S.
market is the
number one
premium cigar
market in the
world and we
do not see that
changing—FDA
or no FDA.