52 TOBACCO BUSINESS | NOVEMBER / DECEMBER | 22 manufacturers and help [regulators] understand what types of companies comprise our industry.” The BCAA does not define the term “boutique” in terms of craft, passion or dedication to each and every step of the cigar making process. Instead, it keeps its focus on highlighting how the boutique cigar industry is family driven. At the end of 2020, the BCAA announced that it was giving up its nonprofit status and would evolve into more of a social platform for boutique companies. To date, the group currently has 58 member companies that all work together to strengthen the quality of small companies while representing their joint interests at the local, state and federal levels. To accomplish its goals, the BCAA works closely with other trade groups, including the Premium Cigar Association (PCA) and Cigar Rights of America (CRA) to amplify its message. The goal of the BCAA’s work is a simple but important one: to make regulators more aware of the fact that boutique manufacturers exist and help them to better understand the boutique cigar category. Today, the BCAA is governed by a board of directors consisting of seven members that make decisions on how to best move forward. The group has made some major moves in recent years, from speaking to various government agencies about the boutique cigar businesses and their plight to strengthening its partnerships with the PCA and InterTabac to draw more attention to boutique cigars. Having spent years building his own brand, Kafie has come to realize that awareness is key to success, but for many smaller brands, it’s not so easy to achieve. “We’ve never heard of you” is a pain point Kafie has had to address in his business over the years. When he hears this from a retailer, he doesn’t take offense but instead sees it as another reason to work on his company’s reach. This drives him with his work with not only his brand but with the BCAA and other brand owners like him. Because he’s running a family owned small business, he doesn’t have a salesforce that is out selling his product, which is something that is common with other boutique brands. Social media has helped build awareness of his business, but it hasn’t necessarily translated into big sales. The success of Kafie Cigars and other boutique brands like it hinges on building direct relationships with retailers and consumers and then having them understand that being family owned is what makes a strong brand overall. Creating anExtended Family Kafie Cigars is a family owned brand, and in turn, Kafie prefers to work closely with brick-and-mortar and online retailers that are also family owned. Just as people do whatever’s necessary to take care of their family, Kafie adapts this “family first” policy to fit his business, ensuring he puts his customers’ needs first. For this reason, some may be surprised to learn that Kafie Cigars has opened no new accounts in the past two and a half years, allowing him to focus on quality control and inventory—to the delight of his retail partners. “Our goal has always been to take care of our core accounts, making sure to always have proper inventory for their customers,” he says. “We don’t believe in being backordered for too long and don’t like to keep retailers and/or consumers waiting for product. This philosophy of always having inventory on hand is not very popular; however, we have developed a very reliable business model for our family and our partners.” Focusing on having quality inventory readily available and quality retail partners to take on that product has been the business model Kafie has followed for years. He also takes into consideration the end consumer by ensuring there’s a blend inKafie Cigars’ portfolio for everyone and a cigar for every budget. Kafie is always on the lookout for new business opportunities, but each one is evaluated on whether it will allow him to maintain the value of the products he makes. Kafie has put his time and years in the industry to the point where he’s now a respected and prominent advocate and champion of cigars. When asked how he measures success within his business, he says it’s easy—all he has to do is look at sales and reorders. Many can develop a cigar line and blend that sells once, he explains. The real challenge is developing a product that sells continuously, and that’s where Kafie has put his focus and effort since he entered the cigar business with his own brand. Every business faces challenges and obstacles along the way, but with patience and persistence, those can often be overcome. Dr. Gaby Kafie’s purpose in life now is to produce not only a high-quality premium cigar but also a cigar that will enhance the lives of all of the people involved in the process. Cigars are not just a way for Kafie to support his family; they’re a way for him to tell his family’s story and to extend its legacy far beyond the borders of Honduras. TB Is your store carrying enough boutique cigar products? Dr. Gaby Kafie of Kafie 1901 Cigars outlines three advantages of offering more boutique brands in your store. LEVERAGING BOUTIQUE BRANDS IN RETAIL 1. Boutique cigars offer a more intimate product—one where the owner is not only available to talk to directly, but where the owner is involved in the development, production, and sales of his or her product. I have found that owner-to-owner business relationships can sustain most small cigar companies. Also, boutique cigar brands don’t have crazy minimums that you have to buy. We don’t overextend sales where you are waiting months to get product after you have placed your order. 2. A quality boutique cigar brand can make your store stand out from competitors. This truly only works if the owner and staff of a store have been properly educated as to why your cigars are special. What makes them special? Transmitting this message is critical in the development of a business relationship. If you cannot connect with the retailer about the message (your brand), the retailer cannot connect with the customer about the product. Take the time to build these relationships and you will find there is a lot of value in carrying boutique cigars. 3. Boutique cigars can offer better margins for retailers. I don’t know this firsthand, but I have heard many retailers tell me that they enjoy carrying boutique cigars because they don’t have to compete overpricing with every retailer in town or online retailers, for that matter. Boutique cigars are produced in small batches, and pricing on these brands are typically protected, offering retailers a much better value on their investment. Retailers enjoy carrying product that they can keystone.
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