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TB:
Cheyenne launched its first cigar in 2004,
a few years after the company was formed.
What was the thinking behind that introduc-
tion? What differentiated the product in the
crowded cigar marketplace?
Fratarcangelo:
Cheyenne saw a market need for a
quality filtered cigar that was affordable for the adult
consumer. While the brand selection then was much
different than it is now, Cheyenne emerged as an early
leader in the filtered cigar boom. We wouldn’t say that
it was always easy, but we had the foresight to know
that our brand could help retailers increase their OTP
sales. The combination of quality tobacco, expert man-
ufacturing and great taste was what really set us apart.
How do your prices compare with those of oth-
er little cigar manufacturers? How concerned
are little cigar customers about price?
Price is certainly a factor in a purchasing decision such
as this. Over the years as Cheyenne has built the brand
nationwide, we’ve paid careful attention to pricing in
the market. While we’ve seen cheap brands come and
go, most consumers are looking for consistency in taste,
quality and pricing. While other brands may be priced
lower, it is usually only temporary and doesn’t offer the
consumer the taste and quality they expect from a fil-
tered cigar product.
Have you noticed any trends or changes in the
cigar preferences of consumers over the last
year? Any regional differences?
Overall, our Full Flavor, Classic and Menthol products
are the leaders nationwide. We do see pockets of other
favorites around the country, but throughout our histo-
ry, it’s remained relatively the same. However, as with
many CPG products, consumers, now more than ever,
expect choices and want to have a robust [number] of
SKU variations to choose from. So, we have met that
need with the addition of select flavors throughout the
years. With all of our introductions, we go through a
grueling process to choose the right tobacco blend to
get the perfect taste for our customers. Quality must be
impeccable and we don’t cut corners.
What point-of-sale and sales promotions
do you offer your retail partners?
We love our retailers! Therefore, we do everything we
can to support them in their store environment by pro-
viding customized solutions that work for them. We’re
not about pushing an SKU that won’t work in their
market just because it is our latest offering. Rather, we
tailor programs that work for their needs and support
them with point-of-sale and email marketing. We also
offer incentive programs to reward their loyalty and
their business.
Where do you source the tobacco for your
cigars? Where are they made? What distin-
guishes your production process from that of
your competitors?
Our cigar tobacco is sourced from all over the world to
ensure that our high-quality blend is at the peak of per-
fection each and every time. Our cigars are proudly made
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in the U.S. at our facility in Grover, North Carolina. It is a
small town outside of Charlotte that is home to about 600
residents, and we’re very proud to provide careers with
great benefits to the local community in an otherwise eco-
nomically depressed region of North Carolina.
Some companies are in a holding pattern,
taking a wait-and-see approach to product de-
velopment while FDA regulation unfolds. Yet
you introduced a new cigar in February. What’s
your view of how FDA regulation will impact
the market? What are your biggest concerns,
and what changes have you made to your
plans as a result?
Our motto since the beginning has been to be as in-
volved with regulatory affairs as much as possible.
Helping to shape the way our future looks allows us to
be proactive in our approach to products. Rather than
“sit back and see what happens,” we’re right in the thick
of it. We find that it’s not only beneficial to our business,
but it helps our wholesale and retail customers as well.
For retailers who don’t have the time or resources to
invest in a regulatory team, it is a great added value
that we provide.
FDA regulation will surely cause some brand con-
solidation in the marketplace. Unfortunately, the cost
of doing business with [the] FDA will increase and we
expect those costs to be passed along to the consumers
at some point.
How involved are you in advocating for the
industry? What advice would you offer to
retailers who are looking to have a voice in
Washington and/or the state level about regu-
lations that will impact their businesses?
As I mentioned, we’re very involved. It is important for
retailers to be informed, even if they don’t have the re-
sources to advocate on their own behalf all the time.
There are many industry associations that do a great
job of keeping retailers informed through newsletters,
seminars, webinars and lobbying opportunities. Even
getting in touch with these associations at trade shows
is helpful. Secondly, it is important to come together
as one community. While each retailer has their own
interests and challenges, presenting a united front is
helpful to achieve common goals.
You now produce a range of filtered cigars.
What’s next for the company? What are your
goals for 2017?
We have 12 styles (Tropical and Strawberry make 11
and 12, respectively). We have some exciting new con-
sumer engagement plans on the horizon that will drive
traffic to retail stores and we have plans to expand our
distribution even further. While our goals change from
year to year, our vision has remained a constant: pro-
vide profitable solutions to our industry partners and
provide quality, affordable products to our adult con-
sumers. Cheyenne was started as a team of four, and we
maintain that entrepreneurial spirit to this day. We find
this is a competitive advantage when working with our
retail partners and will continue to operate this way in
the years to come.
TB