Tobacco Business

[ 22 ] TOBACCO BUSINESS [ SEPTEMBER / OCTOBER | 21 ] much of what she’d face and work on at Scandinavian Tobacco Group. Santos joined Cigars International in 2003 as its director of operations, a position that had her reporting to Keith Meier and John DeMarco. “I met John DeMarco at an IT conference and became very interest- ed in CI because of the company’s rapid growth,” she explains. “Meet- ing John was fortuitous: I was living and working as an IT director in NYC and about to have a family of my own. I was pregnant with my first child at the time. As a result, I started thinking about moving back to Pennsylvania to be closer to family. The opportunity to work at CI in Bethlehem, Pennsylvania, seemed ideal at the time, and look- ing back, it clearly was the right move for me.” DeMarco, who co-founded Cigars International, was Santos’ first mentor within the cigar industry. She gives him credit for teaching her the ins and outs of managing operations in the rapidly growing e-commerce company as well as how to navigate an industry that con- tinuously faces increasing regulatory and compliance demands. Other mentors that shaped Santos’ career in the cigar industry include Wil- liam Murphy, Scandinavian Tobacco Group’s former North Ameri- can vice president of online and retail division, and Craig Reynolds, former Scandinavian Tobacco Group executive vice president of global handmade cigar business. Both taught Santos the importance of developing relationships within the category and the importance of putting consumers first. Dianne Blixt, a Scandinavian Tobacco Group board member and former chief financial officer of R.J. Reyn- olds Tobacco Co., is one of Santos’ current mentors and role models. “She’s an incredible role model, and I’m grateful for the wisdom of her experience and the insightfulness of the tobacco industry and the other industries she has been involved in since,” says Santos. Santos draws inspiration from outside of Scandinavian Tobacco Group as well. Glenn Wolfson, CEO of Drew Estate, has inspired Santos to become more innovative when it comes to managing the inevitable changes that are taking place within the cigar industry. “His support is genuine and valuable,” she says. All of these mentors have contributed to a shift within Santos, enabling her to see the value in focusing on long-term strategies necessary for growth rather than the short-term strategies usually typical of startups during periods of rapid growth. Santos enjoys work that offers variety and a fast pace. She knew that by joining Cigars International, she’d have very little time or reason to be bored. “Cigars International offered me the ability to develop and lead many disciplines of the business, such as marketing, merchandis- ing, operations, distribution and technology, and I committed myself to becoming fluent in them all.” Initially, having the chance to expand her leadership skills as a director and gain more experience in the direct-to-consumer channel drew Santos into her new role at Cigars International. As time went on, Santos was fully immersed and taken in by the love and appeal of handmade cigars. When she first started working in the tobacco industry, Santos admittedly was not a cigar smoker. After one or two years of reading about the romance that surrounded the cigar lifestyle, she decided she needed to experience cigars firsthand. Since making that decision, Santos says she hasn’t turned back. “I’ve come to love cigars, enjoying several a week myself,” she says. “Cigars are an affordable social luxury. They are great for moments of relaxation and reflection. I also like to think of handmade cigars as a great unifier across social strata. Many [people], including myself, associate the enjoyment of a cigar with good times, friends and major life milestones, such as weddings and the birth of babies!” She continues, “Up until about a year ago, I used to try a lot of cigars—not unexpected with a warehouse containing what is likely the widest selection of handmade cigars in one place in the world. Based on a recommendation from a colleague, I’ve more recently made my frequent go-to cigar Toraño Reserva Decadéncia. The tobaccos in that cigar were aged in French oak barrels that were used to age port wine, so the cigar is amazing on the palate and has a pleasant room note. As a red wine drinker, this cigar is pleasing both with a glass of wine or without.” Just as her relationship with cigars has evolved with time, so has the premium cigar category that she’s worked within for the past few years. Since joining Cigars International in the early 2000s, there have been many changes on the regulatory and tax fronts impacting the cigar business. There also has been a noted change in consumer preferenc- es. With the wide variety of cigars now available on the market and the rise of new brands each year, the cigar industry is going through a change similar to what was experienced in the craft beer industry several years ago. Today, with so many cigars and brands to choose from, consumers are what Santos describes as promiscuous, meaning they are much more willing to expand their smoking repertoires with Cigars are an affordable social luxury. They are great for moments of relaxation and reflection... Many [people], including myself, associate the enjoyment of a cigar with good times, friends and major life milestones, such as weddings and the birth of babies! – Sarah Santos “ ”