74 TOBACCO BUSINESS | MAY / JUNE | 22 “I just basically went around and did some due diligence, looking at what everyone was pricing their stuff at retail,” he says. “I decided that since [the retailers] are going to be the brand ambassadors, I want them to have something that they canmake money from. Amajority of the retailers make about 50 percent gross margin onmy product, and 50 percent gross margin is pretty good in the industry, because on average, when they actually receive the product, it’s already like 40-50 percent, and then they have to tack on another 20 percent. It’s not like that with my cigars. They’re making a huge amount of money.” Vorieo is also going to stand out in humidors because of its distinct branding. James grew up around Moundville Archaeological Park, which is located along the BlackWarrior River inAlabama. Native American imagery could be seen throughout this area, and James wanted to bring some of those images into his cigar brand. He also was inspired by what he read in the Bible andwhat he sawduring his travels to Egypt. To bring all of these designs and inspirations together into a cohesive design that would have an impact among cigar smokers, James turned to Humberto Areas, founder of Cigar Package Design, for help. “It wasn’t easy at first, but he listened to what I wanted,” says James. “We established that I wanted to create a luxury but modern brand. I wanted something that would touch the heart of people but at the same time tell a story.” Creating a strong brand that retailers and consumers would get behind was only part of James’ go-to-market plan for Vorieo. He knew that in order for it to be successful, he had to make sure the right processes were in place to support Vorieo’s growth. Positioned forGrowth James is very selectivewhen it comes towhich retailers he decides to partner with. Before bringing on new accounts, James interviews each retailer to make sure his vision aligns with theirs. This is key, he explains, because if you don’t establish a good relationship with a retailer and don’t define how you want your product to be presented and merchandised, it’ll easily get lost once it’s brought into a store. In addition to setting some clear goals and expectations at the start of any business partnership, James has also created different tools and resources for the retailers to use that will help thembecomemore familiar with his products and will assist them in selling Vorieo in their stores. Part of this is accomplished through enhancing shelf talkers with the addition of QR codes. “Education is very valuable,” he says. “I created the Vorieo cigar catalog, which is available on the website. The catalog provides each consumer with a detailed description of my brands. When the retailer communicates to the consumer, that adds value. I’ve noticed that sometimes the retailer and their employees are overwhelmed with trying to remember all the brands they carry but especially when trying to remember the details of a new brand. I decided my best solution for educating everyone was creating a QR code since we are moving more toward technology and everyone has access to a phone. Anyone that wants to know more information about Vorieo’s cigars can just scan that QR code that takes them directly to our catalog. That’s where the education starts.” Anticipating customers’ needs is how James stays competitive, and it’s also what adds value to his brand’s name. Social media and swag are additional tools James uses to create brand equity. Whether it’s connecting with consumers online or offering them a chance to represent the brand by purchasing andwearing a Duck&Sun hat, these actions all build awareness andmake Vorieo an easier sell for both retailers and consumers. “Brand equity” may not be a term heard often in the cigar world, but it’s howmanyof the industry’s biggest playershavebuilt their businesses. James understands the importance of building awareness around a brand and has put in place a strategic plan tomake theworldwell aware of Vorieo andwhat it has to offer. From its distinct backstory rooted in Native American and Egyptian culture to its keystone pricing that offers retailers generous profit margins, Vorieo is established and positioned for growth. TB Having trouble defining or telling your brand’s story? George James, founder and owner of Vorieo Cigars, offers the following tips to help you define and tell a story that resonates. • Know what you’re up against. Understand your industry and how the federal government operates. • Protect your brand. Own your intellectual property. This adds value to your business and its brands in the long term. • Get your finances in order. James advises everyone to make sure they have enough money because it takes money to be in the cigar industry and to create a brand. • Be clear in your messaging. When you’re communicating something, you have to make sure you articulate what you’re saying. Not only do you have to articulate, you have to create curiosity around your brand. HOW TO TELL YOUR BRAND’S STORY
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