Friday, April 24 2009
This month, we speak with David A. Blanco, vice president of Los Blancos Cigars. I first met David several years ago in Nicaragua and we hit it off instantly. He's an energetic young man who's constantly on the move, spending most of his time traveling and promoting his cigars. David also lives somewhat of a double life. Not only is he the point man for Los Blancos Cigars, but he has served in the United States Army in Afghanistan, and now in his 19th year, continues to serve his country in the U.S. Army Reserves.
Los Blancos cigars is also the name of the company's premier line. Produced in Nicaragua by Nestor Plasencia, the cigars are presented in four wrapper shades: Connecticut, Criollo, Maduro and Sumatra. Los Blancos also produces Primos cigars, a high-quality Nicaraguan bundle selection presented in Rosado and Maduro wrappers.
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Cigar Advisor: What was the first cigar you ever smoked, and what do you remember about it?
David A. Blanco: I remember it as if it were just a moment ago. The reality is that it was 20 years ago. I was at my local tobacconist and had read and heard about a cigar that was rich in taste and a great value as well. The cigar was a Punch Double Maduro [Oscuro] Rothschild. The price was around $2.25, and at the time it seemed incredible. I continued smoking it for years, but after about six years it changed and the price began to climb. It was at that time that I began to venture deeper into the underbelly of what we now know as the "premium cigar industry."
Tell us about your family background in growing and blending tobacco, and how the Los Blancos Cigar company started.
D.B.: The family has been in the industry and growing tobacco since 1850 going back to the Pinar Del Rio region of Cuba. It wasn’t until the 1970’s that the family began rolling cigars as well. My father’s cousin, Nestor Plasencia Sr., runs the entire family operation in Honduras and Nicaragua with his son, Nestor Andreas Plasencia Jr.. Nestor Sr. is my father’s age, and as a sign of respect I call him "Tio," which is Spanish for "uncle." However, I call Nestor Jr. "Primo" which is Spanish for "cousin," because we are closer in age.
In 1998 Los Blancos opened in Safety Harbor, FL and was relocated to Ybor City in Tampa for a short period of time. We then moved all manufacturing operations to Segovia in Esteli, Nicaragua in early 2001 and moved all distribution and US operations to Chicago, IL the same year.
Who directs the overall manufacturing process for Los Blancos?
D.B.: One of the family’s most trusted factory managers, Señor Aghmed Fernandez. He is directly responsible for the day-to-day factory operations (material preparation, scheduling, manning, etc.). However, both my father and I are actively involved and exercise quality control oversight throughout the entire tobacco selection process including aging and curing, manufacturing, packaging, and the shipping of our cigars.
How personally involved are you in the blending process?
D.B.: I am intimately involved in the blending process of all our cigars. However, I would never consider myself a "Master Blender." That title is reserved for those that have worked with tobacco all their lives. The reality is there are very few of them in the industry and even fewer Masters. I have had the fortune of working and learning from two of the best and other well known Master Blenders in the industry. I am proud to have collaborated with them to develop our lines and still enjoy the creative aspect of the process the most.
How do you maintain the consistency and quality of your cigars?
D.B.: Hard work and attention to detail. The Plasencias are the first measure of quality control by consistently growing tobacco known to be some of the best in the world. Fermentation is essential, and without it being uniform great tobacco becomes worthless, so our fermentation department is critical to our success. You can’t produce a good cigar without first having premium tobacco fermented naturally. As I mentioned before, Aghmed (who is also my cousin by marriage), oversees the day-to-day operations, which I would compare to a conductor leading an orchestra. He keeps everything well oiled and running without variation. He and his subordinate managers oversee physical production ensuring the rollers and aging process are strictly adhered to.
The packaging section is managed by another person charged with the responsibility of maintaining strict standards with box production, cigar bands, ribbon and cellophane. Every cigar should look identical in a box of Los Blancos or Primos Cigars, and of course, it takes many family members to achieve the goal of producing an excellent cigar year-in and year-out. We have to work as a team, and all towards the same goal. One thing is certain: for us to have survived this long and continue to grow we have achieved excellent consistency, which can only be accomplished through innovation and repetition - 159 years worth!
Who is the Los Blancos cigar smoker?
D.B.: Everyone is a Los Blancos smoker, and more and more are becoming them everyday. Our cigar blends are diverse in taste and aroma as well as in body and size. We try to make a cigar for every category of smoker. On one end of the spectrum we have our mild-to-medium Connecticut Shade, and on the other, our new full-bodied cigar made with a dark Corojo wrapper from Nicaragua. Our prices range from $5-$8, which is what many smokers are still willing to spend for a good premium cigar.
Your Primos cigars are the highest-scoring bundle cigars to be reviewed in Cigar Aficionado magazine. Tell us about that, and how much it's helped, if any, in your overall marketing efforts?
D.B.: I was very proud to have received that rating however, I never considered the Primos line "bundle cigars." I simply decided not to box the cigar in an effort to decrease cost and increase value to the consumer. This decision in no way affected the cigar itself as evidenced by the quality of the three year aged Habano wrapper that we use in both the Rosado and Maduro. Additionally, all of the fillers and the binder are selected from the highest quality tobaccos available. What that rating actually translated to was "the highest rated and least expensive cigar of the year" making it the "best value cigar" as well.
There are still many cigar smokers who are not familiar with Los Blancos. What is the biggest challenge you've had to overcome in marketing your cigars, and what have you learned from that?
D.B.: The fact that we are a “boutique brand” limits our visibility in mass market venues. However, we have made great strides in the past few years reaching markets through word of mouth and events at "brick & mortar" retailers. I feel that this customer base is more dedicated in their brand loyalty as are a large majority are cigar enthusiasts, and also smoke on a more regular basis. This year we have begun to bridge the gap between the boutique realm of the B&M shops and the larger commercial venues by solidifying new relationships with reputable catalogs, distributors such as Famous Smoke Shop, and other big players in the industry.
Since neighborhood cigar stores are the primary outlets for your cigars, what's the word on the street about the recent SCHIP legislation, and in what way do you think it will affect your cigars and the stores themselves?
D.B.: On its own, the final outcome of the SCHIP (+$0.402/cigar) is likely to have a minimal adverse effect on overall sales, albeit certain geographical markets will be more affected than others, based on the regional economic/employment situation, and the disposable income bracket of the average local smoker.
More importantly is the ever increasing tendency on the part of state and local governments to remedy their financial woes at the expense of the tobacco industry, as in the case of Florida's proposed state legislation, which imposes a $1.00/ounce tax on cigars. So far, indicators suggest that high-end brands ($8-10.00/stick) may be experiencing a greater loss of market share at the expense of medium priced cigars ($4-7.00/stick).
As is our tradition, Los Blancos still offers high quality products, but we remain, by-far, a more financially advantageous line to our retailers, which enables them to offer consumers a premium cigar at an affordable value. Some retailers may have to adjust their inventories, to reflect local economic conditions and to afford their clientele the greatest “bang-for-their-buck”, instead of just continuing to fall prey to marketing schemes.
Like many other Cuban families, your family was personally affected by the Castro regime. Do you see any light at the end of the tunnel now that there are murmurings of the embargo possibly ending under the Obama administration? And if it does end, what will be The Blanco's first order of business?
D.B.: When it comes to the issue of Cuba in general and the U.S. embargo specifically, the primary questions should always be, first, would the proposed change of policy guarantee the Cuban people in Cuba the basic human rights and freedoms afforded the democratic societies of the western world? And secondly, will entrepreneurs be guaranteed the right of private property and the protection of contracts without fear of confiscation and/or nationalization?
An offer made by a dictator to "discuss any topic or issue" does not change the realities on the ground. We remain hopeful that a solution can be found to the Cuban nightmare, but we urge our elected officials to be skeptical of promises, keeping in mind that “in God we trust," but all others we must verify. The Blancos stand ready to "put their shoulder to the wheel" on behalf of our country, our country-of-origin, our family members, and our countryman. As a business, we will continue to uphold our motto of quality, tradition and value.
What is your take on the current and future state of the cigar industry?
D.B.: There is no doubt that we remain an industry under siege. We must continue to assert the differences between us and other tobacco-related products, so that we can be recognized, not as a malignant scourge on society, but as a legitimate product appreciated by the connoisseur and safe to consume "as intended" and in moderation, much the same as a fine wine.
Between keeping an eye on the cigars in Nicaragua, promoting your cigars all over the country, and your service with the Army Reserves, you do a lot of traveling. When do you find time to relax, and what do you usually do?
D.B.: That is the toughest question you have asked, and I’m glad you left it for last. I am a simple guy and have simple hobbies. I like to ride my Harley and lay on the beach. If I have a bit more time, I enjoy sky diving and scuba diving. However, those opportunities seem to few and far between as my company continues to expand.
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For more information on Los Blancos Cigars, please visit LosBlancos.com.
