Tobacco Business

[ 26 ] TOBACCO BUSINESS [ SEPTEMBER / OCTOBER | 21 ] an authentic cigar smoking occasion for all to enjoy and take part in, something that is becoming harder to come by due to increasing regulations. Inside each Cigars International store a consumer can receive insights and recommendations from the well-trained and knowledgeable staff, and consumers can enjoy a cigar and beverage in a relaxing environment that has a state-of-the-art ventilation system. Cigars International, while catering to cigar enthusiasts, is designed to be welcoming to cigar smokers as well as non-smokers. Each loca- tion includes comfortable seating and nooks where intimate conver- sations can take place, making it the perfect destination for business meetings to be held, groups of friends to meet and even for families to host get-togethers. The overall goal of Cigars International is to bring people in and further their interest in the cigar category and the lifestyle that surrounds it. “We designed the stores to be equally as welcoming for non-smokers as they are for smokers, and that’s where we excel at Cigars Inter- national: in creating a welcoming atmosphere for all of our guests,” proclaims Santos. Like much of the tobacco retail industry, Cigars International has faced its share of obstacles and challenges, most notably the COVID-19 pandemic that has caused a shift toward e-commerce and explosive growth in the handmade cigar category. To adapt, Cigars International has devoted more time and attention to making sure it meets the needs of all of its customers, both in person and online. “The challenge has been to modify our online approach to meet tradi- tional brick-and-mortar retail consumer expectations online,” says San- tos. “This has entailed making modifications to our product assortment, enhancing the online user experience—including the introduction of additional means of communicating with customer service, such as chat—and prioritizing within our supply chain so the most in-demand products are delivered to consumers as quickly as possible.” Cigars International must also deal with the increase in regulations and taxation that make it even more challenging to be a retailer of tobacco products. “The biggest threats to the premium cigar category are taxation and regulation,” says Santos. “The lack of consistency across states and the jurisdictions within creates great complexity. As a result, we collaborate closely with our counterparts in the industry to come up with more streamlined approaches to present to legisla- tors. STG is also working to educate policymakers, politicians and regulators to help provide solutions that work for all. In addition to legal counsel, we also work closely with our own team of lobbyists to advocate [for] the rights of cigar enthusiasts and ensure the premium cigar category is well-represented and well-positioned for the future.” Regulations, taxes and pandemics are not enough to deter the efforts of Santos and others at Cigars International from identifying and chasing after opportunities. One opportunity Santos says could help Cigars International continue to grow is the way it monitors and cap- tures consumer demand and turns that data into inventory forecasts for stock purposes and factory production. Making improvements and enhancements to a consumer’s experience with Cigars International both in-store and online through personalization is another way San- tos hopes to continue to build her company’s business. Adapting to the New Normal Just as her mentors taught her, consumers remain at the core of everything Santos and the team at Cigars International does. While building a loyal customer base for Cigars International over the years, Santos has learned that almost every cigar smoker is a connoisseur at heart. That means they all have a desire for knowledge, demand quality craftsmanship and appreciate variety while seeking custom- ized smoking experiences. Many cigar smokers want to be viewed as authorities among their peers that smoke cigars, which is often achieved by being the first to try a newly released cigar or securing a rare or limited edition blend. “In order to create a loyal customer base, we must cater to the needs of the discerning cigar lover and offer them the ability to transact when and how it suits them, while deepening their appreciation of the category through education and unique smoking experiences and occasions,” says Santos. “It’s about delivering great products and great service and maintaining the right level of engagement with the customer between transactions.”