Tobacco Business

[ 64 ] TOBACCO BUSINESS [ SEPTEMBER / OCTOBER | 21 ] Farm Rolled gives our passionate cigar lovers a chance to see what they truly like. Unlike Privada Cigar Club, Farm Rolled is still an open club. I was always asked to create a higher-priced tier box, but honestly, I never wanted anyone to be treated differently. That box is the best I can do each month, and it’s something we all share together. And that sharing is part of what’s created that community. Doyle: All of our memberships are priced to provide the best pos- sible experience to our members. Again, our driving principle is the experience we provide and is less from a value point, although we do believe we provide the highest return per dollar in the cigar-of-the- month-club world. Berezowski: We’ve been humbled with great support and have been able to consistently reinvest resources on the service in that pursuit for constant improvement. Our mission has always been simple. We wanted to design a high-end subscription at the most affordable rate we could possibly sell it for. Our margins are small, and only collective integration and growth within the community can exponentially make the packs better every month. How have you gone about building a loyal following or sense of community within your business without having a physical location? Desind: Privada is a community. When it comes down to it, as influential as I am on the actual products that go in the online shop and the subscriptions, from the beginning, Privada has been communal like no other business I have ever seen, even or more so than even Peloton or Crossfit. I’m not gonna give you what I believe is the secret sauce to that, but I will tell you that without our members, I’m nothing. Privada is nothing. It would have gone nowhere. All my work is dedicated to the members. Rotem: Our member experience has, since inception, been the driving force behind what we do, and a massive part of our member experience is community. Our solution for community is an online chat platform in which all our members can come together to chat, herf and learn. We have members from all over the world, and almost any time of day you will find a group of friends smoking together on the platform. We also host several in-person herfs around the country every year where members travel, meet up and, of course, smoke together. Imber: Content, content, content! Every week we host a live show, The Griff & Dave Show . We also produce podcasts, vlogs, cigar breakdowns, behind-the-scenes videos and so much more. It is our way of interacting with our CigarClub family and sharing the everyday with them. Berezowski: My Cigar Pack builds community through authenticity and interconnectivity. We probably have the smallest team out of all our competitors, but when we have those slim opportunities to engage with our members and followers, we do so through the passion and nature that drives us, not to simply create a social media trend. How are you approaching scaling your business? Is there a limit to how big your subscription business can get? Berezowski: Sky’s the limit, but given our nature, we must predict, project and control these volumes to guarantee the quality. We’re focusing on staying true to that quality through steady and exponential growth. Rapid growth in a segment and craft that requires years of patience and attention to blossom can be treacherous, as we don’t want to adapt into a model that diverts from what we originally intended to bloom. Desind: Privada is now private, and we have been for almost a year now. Once in a while we let new members in. We have one of the highest retention rates in any subscription business for any industry. I’ve done my homework. Our waiting list is always at least 5,000 deep. Most entrepreneurs would never refuse to take advantage of that, but Privada has to remain special. Most manufacturers make things in batches of 7,500 to 20,000, so when I find the truly rare or special stuff, it will be around 9,000 to 12,000 sticks. Because of that, I had to cap the club. Money is great, but consistency is everything! I put my name and reputation on Privada. It has to be amazing! Even when you don’t love a cigar in the box, you know where it came from, who made it, what they used and why it is such an honor to be able to get that product. Farm Rolled, on the other hand, I think we will be able to keep open for at least a few more months. Farm Rolled is quickly becoming the takeover box. We have so many brands making the entire box, from Aganorsa, CAO and Blackbird to Sinistro and even A.J. Fernandez. It’s a great way to show off your skill as a manufacturer. Imber: There is no limit for us. We want anyone who wants to enjoy cigars and learn more about this industry to become part of the CigarClub family. Rotem: There is always a limit, but we have not reached that point yet. Our club will stop growing when we are no longer capable of delivering the highest levels of consistency and quality. That will happen as the result of stretching our warehouse capabilities and manufacturers reaching production limitations. How are you reaching out to manufacturers to get them on board with your business? Imber: Most times it’s through a connection from another brand we are working with, or brands will reach out to us to be a part of our box. Berezowski: Through face-to-face meetings, seeing things eye to eye and shaking hands on a partnership that would be beneficial for them, us and My Cigar Pack’s members. Doyle: Although we have many manufacturers reach out to us to get on board, the formula is always the same: We introduce ourselves and what we do, experience their product, and if we love what they do and who they are as business partners, and the price is right for everyone, we start a relationship.