Tobacco Business

[ 68 ] TOBACCO BUSINESS [ NOVEMBER / DECEMBER | 21 ] Boutique brands such as El Artista's Buffalo Ten and Aganorsa Leaf's Supreme Leaf offer cigar enthusiasts both variety and products produced by vertically integrated tobacco manufacturers. employees and your stock of products feel more special. Boutique cigar brands and products offer your store a unique opportunity to not only educate and introduce your customers to something new and out of the ordinary, but they also give you another chance to engage customers by educating them about an important product category within the industry. Retailers who are looking to build a successful business today are not intimidated by boutique tobacco products. They are up for the challenge of educating their customers about brands that may not have as much brand recognition, and they understand that their store’s humidor should reflect the industry as it is—meaning that it should contain both legacy brands as well as more niche “boutique” products. Tobacconist University provides retailers with the fundamentals that will help them be a success within the tobacco retail space. This educational foundation is essential when it comes to understanding boutique cigars and communicating their value to customers. In the interview that follows, Armenteros offers his take on the value of boutique cigars and shares some tips for how retailers can turn this subset of cigars into a big source of profit. Tobacco Business: Since you’ve been a retailer, how have you seen the boutique category evolve and change over the years? Jorge Armenteros: When I began creating my retail tobacconist shop in the early 1990s, I started with a strong focus on boutique, super-premium and Cuban expatriate cigars, and that continues to this day. At the time, the emergence of Cigar Aficionado magazine showed me the sophisticated side of cigars, and I thought that was a niche I wanted to serve. I wanted to focus on quality over quantity, education over information and substance over hype. I think these are values that apply today and create better service and product pairings for our customers. I know that people have been talking about boutique cigars for the last 10-20 years, but quality, education and substance have always been my focus. What are some of the pain points you’ve heard retailers express about bringing in boutique products? As a retailer who has always specialized in boutique cigars, I can tell you the biggest challenge is the massive market share possessed by big legacy brands like Macanudo, Cohiba, Partagas, H. Upmann and Romeo y Julieta. Every day, customers come in and ask for these popular names, and they can be disappointed when we say we don’t have them. Ironically, many of these customers smoke a handful or less cigars a year, yet they feel comfortable asking for names they know and recognize. It is never fun seeing the look of disappointment—or occasional disdain—when you tell a customer you don’t have that product. Converting that customer is the ultimate opportunity for a retail tobacconist. If you can introduce that customer to a cigar they might like better, then you can get a customer for life. The key to building that relationship and making the sale will be educating the customer about the products you do carry. Teach them about the factory, the cigarmaker, the process and the story behind the cigar you are selling. Retailers who sell boutique cigars must educate themselves and then their customers. We need to build trust and project credibility. Did I mention that being a [Tobacconist University] Certified Tobacconist helps with this process? When properly informed, a customer will want to try a boutique product over one that is mass produced and potentially massively discounted through mail order. There are friction points when selling boutique and lesser-known products, but they can be converted into opportunities to succeed. Furthermore, let me emphasize that retailers must make this effort because the alternative is devastating. Your customers will eventually find the larger brands at cheaper prices at competing stores and chains and at much, much lower prices online. When evaluatingwhether or not to bring in a boutique brand, what factors should retailers take into consideration? Price, quality and distinctiveness are the most important factors when evaluating a cigar for your inventory. You must pay special attention to the “big picture” of your humidor as well. Ask yourself, “Where does this fit in?” Or, “Do we already have too many $5 Connecticut Shade Dominicans?” A retail humidor should be comprehensive and have something to satisfy every customer. Different stores and regions have different preferences as well, so you must know your clientele. Many stores have panatela lovers while others don’t. Some stores stock mostly fuller-bodied and stronger cigars while others won’t. Every new product must be evaluated with your specific market or company vision in mind, but price, quality and distinctiveness are the fundamental issues.