Smokeshop

30 SMOKESHOP April 2016 That new corporate culture is one that empowers the workers for General Cigar. "We don't believe in the value of micromanagement," Frederiksen adds. "We want people to feel they can make a difference and give them the opportuni- ty to make a difference." Scandinavian Tobacco also changed its structure, making Broersma the pres- ident of General Cigar—the premium handmade segment—and having him report to an executive vice president— Craig Reynolds—who will oversee Gen- eral's premium operation worldwide in addition to retailer Cigars Internation- al. Reynolds says General is going to operate like a smaller company. "Big is a mindset and if you want to run your company that way it is fine, but that is not what the industry is now and Gener- al Cigar has not taken advantage of some of the changes in the market," Reynolds explains. "And now we are. We're going to be flexible and push decision-making down to the appropriate levels and allow them to take risks, really obligate them to take risks. We know we are not going to succeed at everything but you learn more from failures frankly. Let's just try some stuff and see what happens." RENEWED FOCUS In talking with General's new manage- ment, it is obvious they are excited about the challenges that lie ahead. "We have strong brands and I don't think we use them well," says Broersma. "We can leverage the potential in the brands. We don't sell the box, we sell the cigar, the handcrafted product. And the people here in the Dominican Republic, Hondu- ras, and Nicaragua are very important. I think we can be stronger in that." One way the company is working to strengthen its brands is by a spin-off of sorts of its innovative Foundry Tobacco Company. Alan Willner, General Cigar's v.p. of marketing, explains, "Four years ago we had the concept of launching a stand-alone boutique company with Foundry Tobacco. The idea was to create a distinct culture to better relate and con- nect with consumers in a real way. We felt like it could be a growth engine, but it also could have a positive halo over Gen- eral Cigar and change perceptions in a positive way about the organization. We have a big book of brands and despite the creativity of Foundry's projects, as good as they were, they became lower priori- ties because of the big book of brands, ultimately, so they never got the momen- tum or scale." Now with Broersma and Reynolds at the helm, as of March 1st Foundry is no longer part of the General Cigar port- folio and instead is handled by brokers and is truly functioning as a boutique. The brands under the boutique are the re-imagined Bolivar and Ramon Allones along with Chillin Moose and others. That, in and of itself, speaks volumes to the new culture. But there is a practical side as well; "it is beneficial for Foundry and for our sales people; they can concen- trate on Macanudo and Partagas, Punch and Cohiba," says Broersma, adding, "We want to grow the business; that is why we are here. But quicker—absolutely. Gener- al was very good at analysis, discussing, and stretching the time period for a deci- sion to be made. I think you can see with Foundry a decision has been made quick- ly and we are moving forward. It is the right thing to do." Initially, Foundry will be represented by brokers Taven Johnson and Stephan Mayer of C.H.I.M.P. in Alabama, Geor- gia, Mississippi, Kentucky, Maryland, North Carolina, South Carolina, Ten- nessee, Virginia, West Virginia, and the District of Columbia. The plan is to add additional territories over time. Willner says that in addition to the Foundry spin-off, his marketing de- partment is working to strengthen its core brands, proclaiming this year as the year of Macanudo. "To create more in-store visibility and consumer appeal, > Left: Available since 2014 but only in international markets, the Honduran-made Macanudo Inspirado Orange, featuring new Macanudo branding, is now launching this month in U.S. B&M stores. Center: In January, General Cigar unveiled an updat- ed insignia design for its market-leading Macanudo brand. Right: Hoyo is a new Honduran-made "artisanal line" under the Hoyo de Monterrey brand that's exclusively for brick and mortar retailers. It taps propri- etary and extra-fermented tobaccos. > CIGARMAKER SPOTLIGHT > General Cigar has implemented its original intention of organizing Foundry Tobacco Company as a stand-alone boutique, now with a separate sales force. Brands include Ramon Allones, Bolivar, Compounds/Elements, Musings, and Chillin' Moose.

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