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The feedback we’re getting on the brand
ambassadors is very favorable. Retailers appre-
ciate the engagement we’re offering in their
shops, and cigar lovers are following along
on social media, learning not only about the
brands, but checking in to see where the brand
ambassadors will be next.
ON NAVIGATING FDA REGULATION…
How has the U.S.’s regulatory envi-
ronment impacted strategic planning
during your tenure at General Cigar?
We’re the swan above the water, paddling
like hell underneath. With the FDA regula-
tions, it’s essential that we keep on developing
the brand equities and keep our retailers and
consumers excited about what’s in store. Yes,
it did change our strategic planning as it has
put more restraints on us, but those are the
boundaries we have to operate in for now—
and we are.
One of the learnings we had when in Europe
and when the TPD2 [revised EU Tobacco
Products Directive] legislation hit us was that
we focused solely on becoming TPD2 compli-
ant. We forgot to innovate, to develop, to excite
and to build. That caught up with us when we
came out of the TPD2 compliance phase. I was
committed to not letting that happen again. We
ran and still are running two parallel paths: one
being FDA compliance and the other being
developing and winning—exciting the hearts
and minds of the retailer and consumers. It has
put a tremendous pressure on our teams, but
they pulled through and have done a fantas-
tic job. And it is paying off. We live by dream-
ing big, getting shit done and having fun at the
same time.
Within the industry, there’s talk that
the regulatory environment will stifle
development of new cigars and that
the industry will consolidate as com-
panies struggle to comply with FDA
regulation. How will General Cigar
continue to innovate and market
under FDA regulation?
As I mentioned before, we have a library of
predicate cigar blends that is unmatched in
the handmade cigar category. This library of
FDA-compliant predicate cigar blends gives
us all the resources that we need to keep on
surprising our consumers and retailers. As
far as marketing, our strategy is clear. We will
continue to solicit feedback from brick-and-
mortar retailers and will respond to the chang-
ing needs of the retail environment with the
right new items. We’ll leverage our feet on the
street to support our brands at the retail level,
and [we] will continue to deliver meaningful
experiences and engagements with our brands.
I do also believe that the flood of innovation
each year has prevented companies and retail-
ers from really building a sustainable and loy-
al consumer base. With the flood of innova-
tions, brand loyalty has diminished. The first
question a consumer asks when coming into a
store is, “What’s new?” There are hundreds
of cigars in the store already, but the flood of
innovation has taken away the attention from
building a strong core of brands and driving
continuous trial. Every strong company and
industry needs a strong core, and GCC is
providing that.
What do you think the cigar
market will look like in five years?
I believe there will be consolidation in the mar-
ketplace, and the companies that consistent-
ly make quality cigars that meet retailer and
consumer needs and build and support their
brands will continue to thrive. It’s all about
brand equity and being relevant. GCC will
assure that.
TB
For more on General Cigar’s new releases, which
include Macanudo, CAO (Amazon Anaconda),
Partagás, Cohiba, Foundry and La Gloria Cubana
(Coleccion Reserva), see IPCPR Insights, p.12.
We ran and still are running two parallel
paths: one being FDA compliance
and the other being developing and
winning—exciting the hearts and minds
of the retailer and consumers.
Regis
Continued