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.
What does it take to have a successful monthly subscription box business today?
Imber: Be human. Be approachable. Share experiences with your members. Go all out for them.
Doyle: The process of operating a subscription box business is extremely intricate and full of moving parts. You must be absolutely passionate about it because oftentimes it’s very challenging to deliver the highest quality and still make livable margins. Pursuing this passion may not always make you rich, but it is extremely rewarding nonetheless.
Berezowski: Years of dedication, lack of sleep, a good relationship with the brands or a groundbreaking marketing scheme if lacking the aforementioned.
Desind: You must serve a niche. You must know exactly who you are, who that niche is and what they want. So many clubs have tried to be Privada and failed. There can only be one Privada. Because there can only be one XYZ club. We all bring different and special, unique skills and taste to our businesses. Find your special skill, your superpower, and focus on that. And remember, timing is everything!
As part of the next generation of tobacconists, what do you anticipate happening in the future of tobacco retail?
Doyle: The retail sector will need to adapt to the fast-paced world of cigars. Understanding that models like ours are not competitors but support their business models is key. Knowledge and constant study of the market will allow these businesses to get introduced to new brands and trends. This introduction will help them curate a more modern selection of tobacco for their stores and remain a relevant and valuable part of their customers’ cigar life.
Imber: More transparency, less smoke and mirrors. Tobacconists need to be open to sharing all the ins and outs of this industry with their customers.
Desind: I honestly believe we have limited time. Between the FDA inquiries and new taxes and regulations, I don’t expect a lifelong career in this industry, but I sure hope I am wrong! This is the renaissance of the cigar industry’s lifespan. This is our golden era, and we are lucky to be a part of it—let’s enjoy it while we can. People don’t realize that, because of science, cigars are better today than they have ever been. Cuba’s cigars have the nostalgia, but they are no longer the superior product. We know that Nicaragua, the Dominican Republic and Honduras are producing some of the most flavorful tobaccos the world has ever known. We are also in an era of rewarding the growers and artisans, which will produce even better products in the future. The Privada Cigar Club, Limited Cigar Association and Farm Rolled are about to get the best cigars possibly ever made, and that is thanks to the internet, social media and this new passion for cigar manufacturers. Big shout out to people like the Newmans of J.C. Newman, Carlito Fuente, the Padróns, Dr. Gaby Kafe and a few others that are fighting the good fight and putting money where their mouth is to fight against these ever-growing restraints.
Berezowski: The future is a more regulated one. If we all work together, we could possibly achieve reasonable and equitable regulation. One of the challenges the retail sector deals with today and will continue to deal with is misinformation and lack of true validation; there’s a lot of cigar experts out there. In terms of offer and demand, I believe consumers want the same products reimagined through different concepts, smaller productions that stay true to the quality marketed. Ironically, this is only possible due to the exponential exposure in the market and access to the manufacturers through these platforms where information is constantly disclosed. Consumers want their voices to be heard, and these endeavors will keep growing to enable that, and through them, they’ll have more of a voice in what’s produced and how it’s produced. I believe the interaction will evolve from a brand’s, “Hey, this is what we have for you,” to a dialogue in which they ask consumers what they want and how they want it. Specialized subscription services are a big part of the channels that will create that association.
This story first appeared in the September/October 2021 issue of Tobacco Business magazine. Members of the tobacco industry are eligible for a complimentary subscription to our magazine. Click here for details.
– Story by Antoine Reid, senior editor and digital director for Tobacco Business Magazine. You can follow him on Instagram @editor.reid.
