Episode 140

Get In on This Next Cigar Wave | Daniel Lance | Domain Cigars | Box Press Ep. 140

NEW CIGAR BRAND: Domain Cigars, whose flavor and construction are protected by Boveda. Use Boveda to protect the cigars in your humidor, click here to get emails: https://hubs.la/Q01BLsBF0

Domain Cigars is the crest of the third wave of cigar making. Fully vertically integrated. Craft. Innovative. If they can't produce a cigar, they won't make it anymore.

This new guy in town was developed by Daniel Lance and his business partner, Esteban Disla, a master blender who has created cigars for 30 cigar companies. Domain will change the way you see cigars, including a new way to package cigars with Boveda 2-way humidity control. Lance only uses Boveda to keep his cigars, like Domain's new Neutron and Negentropy tasting and smoking great.

Interview by Drew Emmer at PCA 2024, the preeminent event for premium cigar and pipe industry.

00:00 This is Box Press

00:43 Esteban Disla experienced cigar man

02:19 Third wave cigar maker is where the cigar industry is headed

02:27 First cigar wave = Cuba embargo

04:01 Second wave of cigars is like Starbucks is to coffee

05:33 Built Boveda into its cigar packaging

06:02 Boveda first integrated branding

06:59 Positioning Boveda at the foot of cigars

07:21 A cigar naturally dries out from the foot to the cap

08:38 Domain Neutron cigar's flavor notes

12:13 Lessons learned from Sylvia the cigar roller

14:18 People have begun valuing relationships post pandemic

14:52 If we can't produce that cigar, we won't make it anymore

16:49 Boveda branded cigar boxes

18:04 Boveda saves Fuente Añejo cigars

What is Boveda? Cigar makers like Domain recommend Boveda 2-way humidity control for wherever you store cigars. Boveda preserves the flavor and character of premium cigars by keeping them at ideal humidity. Use Boveda B84 packets to season your wood humidor before adding cigars. And then keep cigars well-humidified with Boveda B69 packets in your humidor. Boveda prevents cigars from drying out and mold growth. With Boveda in your humidor, you'll enjoy full flavor and a perfect smoke from every cigar.

Facebook: https://www.facebook.com/bovedausa/

X (Twitter): https://twitter.com/BovedaInc

Instagram: https://www.instagram.com/bovedainc/?..

Transcript
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- So I'm holding in my hand

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a Domain Neutron 52x5 Robusto Extra.

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I'm sitting with Daniel, Daniel Lance.

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Daniel, you're launching a new cigar?

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- Sure am, yeah.

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Domain Cigars has been in progress now

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for almost five years,

in the world of smoke.

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Started out, Esteban

Disla, my business partner,

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who was, you know, a former master blender

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for more than 30 different companies.

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He was instrumental in the starting

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of Latin America Cigars.

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He's been growing tobacco

since he was 11 years old.

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You know, incredible

background that this guy has.

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- Sounds like a good partner to have.

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- Oh, absolutely, absolutely (laughing).

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I think he's forgotten more about tobacco

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than I know, certainly (laughing).

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But that said, yeah, we've

been working on this project

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for quite a long time, keeping

it pretty tight-lipped.

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The last two years, we

started the factory,

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whenever he parted ways with

his former business partner.

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He's always had the vision

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of creating a fully

vertically-integrated cigar company

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out of the gate.

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Our own tobacco, we put that in pilons.

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We own our own pilon

facility in Brigadeiro,

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which is in Condega, Estelí, Nicaragua.

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And in doing so, we

actually blend the cigars

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with our own tobacco.

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We work with several partners

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from providing wrapper for the cigars,

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providing Habano, providing

the Mexican San Andrés

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that you're smoking there,

in the form of the Neutron.

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That's by Gilberto Oliva from TANICSA,

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former founder of Oliva Cigar.

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So really fantastic partners

that we've worked with.

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We've collaborated with more

than 100 people in Estelí,

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Condega, Pueblo Nuevo,

where we all have farms,

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both contract farms, and

farms that we own ourselves.

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So it's a lot to put together,

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but that really kind of

starts us down this journey

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of what do new brands look like

as they come on the market?

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What does the future of cigar

making look like, right?

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And that's very much what

Domain's sphere of activity,

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or excellence, right?

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And that's the name of the company.

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And you see Domain occasionally

as an idea or a concept,

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flirted with in the cigar industry.

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But what does it really mean

to be a third wave cigar maker?

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if you, are you familiar with

that term from I'm coffee,

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or anything like that?

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- I'm not.

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- I'm so, you know,

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in the coffee industry they

talk about it in waves,

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and really distinct waves.

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And that's what I would

like to see elements of

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in the cigar industry.

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I've been a cigar smoker

for more than 17 years now.

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I worked for more than 10

years in a retail capacity,

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while I was out building other businesses.

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My professional career was

in industrial cybersecurity.

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I started a lot of fantastic,

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really strong companies in that space.

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And really what what I saw

was the opportunity for us

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to start better defining

what a cigar maker is doing,

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and what a cigar maker's approach,

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or stance towards the industry is.

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And if we look at how the

coffee industry did this,

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you take an agricultural product,

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and you wrap a brand around it,

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well that's how you get

Folgers, and Maxwell House.

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- Sure.

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- That was the first way

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that the coffee industry

started to actually wrap a name

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that meant something around

a product that, you know,

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had a agricultural function before that.

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You'd buy grain coffee and

roast it at your house.

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So they did that.

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That was the first wave of coffee.

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And very much the cigar community

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was defined by what happened

in:

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- Yeah.

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- That's what defined a standard

set of names, and brands,

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that were known, or

ubiquitous, for making cigars.

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And some of those names and

brands persist to this day.

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And then we had a period

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where we really lost

a lot of intelligence.

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We lost a lot of progression

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in the making and fabrication of cigars.

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And in fact, it switched

countries entirely.

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It went from being a

domestic United States thing,

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to being something that took place

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in Central and South America.

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And in those regions,

several of these companies

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that I would consider

first wave cigar makers,

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actually had to start

and found that brand.

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So as you move forward,

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and again, what is a

second wave then, right?

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And in the coffee industry,

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it was ubiquitous of supply.

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It was creating a standard

approach, a standard model.

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And that is the "mermaid company".

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- Sure.

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- Which is all over the place.

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You see Starbucks on every other corner,

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standard set of drinks, standard menu,

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and you can walk just about anywhere,

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and bump into a cafe

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that's going to have that

standard menu, right?

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And that was really the

second wave of coffee,

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was creating the cafe experience.

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So in the 90s, what we

had happen in tobacco

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was we had just an in-rush

of people that said,

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"You, Mr. First Wave cigar maker,

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"you know everything there

is to know about tobacco,

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"but I know the customers,

I know the branding,

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"I know how people want to

see and experience this."

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And they put together a lot of direction,

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and commission companies

and they're fantastic.

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But that defines a lot

of this industry today,

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which is a cigar maker being told,

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"Do it this way, put this

name on it, and it will sell,

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"and you will collect a

commission for it," right?

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So what the heck is a

third wave cigar maker?

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Whenever we talk about

that, that you know,

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doesn't really jive with a lot of people.

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Now, a third wave cigar maker

to me, in my own opinion,

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is being able to exact quality control

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across the entire enterprise.

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And for Esteban and I, we

wanted to look really far

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into what a cigar maker could really do,

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in terms of quality control.

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How far could we take the

experience of quality control,

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right down from soil, to production,

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pilon, and fabrication,

right to point of service.

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And that's where Boveda comes

in really heavy with us.

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And we're really proud to announce

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that working with Mike

Stous and your team,

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he is been fantastic to work with,

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we did the first ever

integrated branding with Boveda,

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where we actually worked with your team,

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to actually build in

your logos, your artwork,

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into our artwork, and into our packaging,

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so that it felt native,

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and it felt like it belonged there,

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and it was built in.

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And I told Mike one time, I go,

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"You know, if you guys

don't wanna come along

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"with me on this ride, that's okay.

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"That's completely okay.

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"But I have to keep people

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"inside of my customer experience.

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"I have to keep them inside of that."

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The only reason why, you know,

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it makes sense that Mario can

spit, you know, fireballs,

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and things of that nature,

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is because he also jumps 10 feet,

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and breaks bricks with his head, right?

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- Right.

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- We have to keep them inside

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of how that experience feels,

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and that's gonna be my

textures, and colors, and so on.

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And there's a lot of trust back and forth.

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And that's what I mean whenever I say

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"a third wave cigar maker,"

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is being able to exact quality control,

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all the way down to point of service.

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And there's no other brand that does that

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quite like Boveda does with their product,

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there just really isn't.

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I've looked, there isn't.

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And I'm an accessories manufacturer.

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Lujo Concepts is my other company.

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And I can tell you there's

just nothing on the market

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that quite performs the

way that this product does.

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So we integrated it into our packaging,

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at the foot of the cigar.

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And this actually goes back

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to Esteban and I's collaboration,

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where I used to come up to Estelí,

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I lived in Estelí for a period of time.

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I live in Managua, Nicaragua, now.

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But I would come up to Estelí,

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and I'd buy bundles from Esteban.

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and there'd always be a Boveda

right there at the foot,

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in the bundle, you know?

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And I didn't need the box,

or anything like that,

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you know, I'm not going very

far, a couple hours away.

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And what I noticed was

those cigars, to me,

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always seem to smoke better,

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and they seem to have a little

bit more consistent humidity.

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And that's because a cigar

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will actually dry out from foot to cap.

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And being able to put that barrier

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as close to its point

of service as possible,

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was really instrumental for us.

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So we actually redesigned

our slide top boxes

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to include a slot for the

Boveda right at the foot,

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to be able to have that integrated.

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And having your actual brand

present in my color scheme,

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you know, in my textures.

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- And that's a tremendous distinction

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when you talk about the dynamic of a cigar

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drying out from foot to head,

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from the base of the cigar to the cap,

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it makes perfect sense.

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- Yeah.

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- I've never heard it contextualize

that like that before.

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And tell me about the Neutron.

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This is when I see the label,

and it's the Domain Neutron,

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and this is your maiden

voyage for the line,

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one week old in the marketplace.

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- Yeah.

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- This is excellent opportunity for us

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to have the conversation.

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When I see Neutron, I think,

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"Oh, am I gonna get power

hammered in the forehead

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"by this cigar?"

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- No, no, no (laughing).

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That's, you know, that's part

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of why we, we named it "Neutron."

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- So it's not a proton.

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- No, no, it's not a proton.

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So, neutrons have the ability

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to kind of rearrange energy around them.

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And this is a medium

body Mexican San Andrés.

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- It's very flavorful though.

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- Yeah, it's extraordinarily flavorful.

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- I mean, it's got an awesome start to it.

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- Yeah, yeah.

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For me, I get a lot of

vanilla on the start of it.

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I would say macadamia,

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but more green vegetative

kind of macadamia,

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than the salty kind of thing

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you might buy dry at the grocery store.

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But I love that cigar.

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I think it's a masterpiece from Esteban.

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We went out to dinner, and I

was asking Esteban, you know,

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because he has this incredible portfolio,

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all these incredible cigars

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that he's put together over the years.

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And I was talking to him about, you know,

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Sumatra, and different wrappers,

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before we really had a

fairly high grade San Andrés.

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And people were taking

these different wrappers

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into areas of the flavor wheel

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that just haven't been broken open,

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and explored and unlocked since.

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And I asked Esteban, I go,

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"You know, is it possible

if we start in soil,

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"and start growing tobacco

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"for these, you know, particular

distinct characteristics,

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"could we get back into that

area of the flavor wheel again,

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"where we could maybe

even take a San Andrés

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into a medium zone?"

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San Andrés is typically is

medium/full to full body.

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- Yeah, that's what my

experience has been.

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- Yeah, and Esteban goes,

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"You know, I think we can do that today."

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I think, you know, he went

back through five years now

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that we've been growing tobacco.

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We grow 300,000 pounds

of tobacco a year now

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in our filler tobacco

operation and Brigadeiro.

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And we went back through

five years of the catalog,

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and actually found a set of tobaccos

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that would offset just enough.

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because normally you

get with a medium body,

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San Andrés kind of a chalk

like texture in your mouth.

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- Right.

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- It dries out your mouth very bad.

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- Right.

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- And he managed to turn that

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into this really silky, smooth thing.

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- That's a good term.

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"Silky" is right.

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It's not intimidating at all.

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It's a welcoming smoke.

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It's sincerely got some excellent flavor.

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- Thank you.

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- This is a proud moment for you.

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- Yeah, absolutely, absolutely.

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- This is your first launch of a cigar?

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- Yeah, yeah, I've never,

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I had, you know, no particular interest

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in launching a cigar company.

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I moved to Nicaragua five years ago.

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I always tell people I'm the junkie

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that moved to the poppy field.

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It makes no sense.

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And Esteban would laugh at me,

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and he goes, "People don't do this."

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You know, when they're big wine drinkers,

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they go off and move to a vineyard,

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or something like that.

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- Right.

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- I had no real forethought

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about what it was gonna

be like living in Estelí,

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living in Nicaragua, I really didn't.

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I turned up, and I knew

half the community,

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due to events like this, like

PCA that we're currently at.

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And there's so many

fantastic companies here,

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and they contribute so

massively to the culture

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that we have in the cigar community,

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that I was able to walk into Estelí,

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and I knew half the city. Right?

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- Yeah.

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- And they were welcoming,

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and they wanted to teach me about tobacco,

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and they weren't used

to someone, you know,

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coming and showing up, and you

know, being willing to say,

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"Hey, I don't know anything," you know?

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- Right.

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- And that's, that's

kind of the joke today

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is around the factory, you know,

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all of our rollers are 10+ years

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that they've been rolling cigars,

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every one of them.

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We wanted everyone that we started with

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to be first right capable.

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So we wanted all of them to

be able to hold that position

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in any factory that we're walking into,

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to be first right capable.

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That's a really unusual thing.

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But Esteban knows the right

people to call on to do that.

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And so the the joke is, you know,

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I'm basically like Steve Carell

walking around the factory,

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and everybody else is so successful,

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and knows what they're doing.

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And they're really fantastic people,

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and they love tobacco.

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You know, one of our rollers, Sylvia,

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she's been rolling cigars 38 years,

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she's been rolling cigars.

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Incredible experience,

incredible background behind her.

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And I asked her one time, I go,

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"Have you ever smoked a cigars?"

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She goes, "Oh, no, no, no."

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She loves tobacco, loves

cigars, loves tobacco.

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She's raised her children, you know,

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working at a rolling table.

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And she loves just doing that.

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Her favorite thing to roll,

Bermejo, Robusto Extra

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That's her favorite thing to roll.

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Just a simple cigar, and she's happy.

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You know, we go away for holiday break,

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we can't stop our employees

from coming back to the factory,

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and they want to come

back and have a coffee.

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You know, they always,

they tell their spouse.

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- It's a central part of their life.

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- Absolutely.

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Even there where they don't have as much

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of the same cigar culture that we have,

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there's something about great tobacco

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that brings together fine men and women

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that enjoy this experience,

enjoy this culture,

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and it breeds its own unique

culture everywhere it goes.

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And that's, I was talking

to a retailer recently,

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and they were talking about, you know,

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the recent uptick we've had,

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since the days of the coof, right?

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And they said that, you know,

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this uptick, you know, it's unique.

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We don't know where it came from,

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how long is it gonna last, and so on.

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I said,

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"The most important thing

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"that you need to recognize

about what's happened

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"to the cigar industry

recently is, we didn't change."

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- Right.

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- We didn't change.

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The people that are attracted

to what we're doing here,

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and the conversations that we've had,

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coming out of barber

shops, and coming out of,

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you know, the speakeasy

scene, even way before that,

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we have a lot of opportunity

here to capture the interest

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of more and more people

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that are getting interested in cigars.

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- Right.

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- And getting interested in the culture,

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the cultural aspects I think

is the most significant part.

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But I think we're right

at the very beginning.

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We're right at the very beginning

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of the cultural significance of the cigar,

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on the American public.

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I really think that,

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I think we're right at

the beginning stage,

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- Not to get all gooey on you,

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but I would go so far as to say

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people have begun valuing

relationships, valuing life,

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with a different sentimentality

in the last five years,

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with what we've been through.

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- Yeah, yeah.

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- And if you, a luminary

in this industry said to me

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in a similar interview last year, said,

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"This is not a cigar,

this is a moment in time

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shared between friends."

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- Yeah.

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- Changes everything.

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- Yeah, absolutely, absolutely.

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We like to describe it as as a narrative,

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you know, in that we

don't refer to our cigars

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in terms of core lines.

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And Esteban never really cared for that,

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because he saw too many opportunities

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for people to slap a band on something

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that wasn't the original expression.

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It wasn't the experience

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that that customer was

looking for anymore,

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when the tobacco changed.

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And so we've committed ourselves to,

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if we can't produce that cigar

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because we don't have

access to that tobacco,

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or we've shut that down,

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we're gonna stop featuring that line.

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So all of our cigars are features,

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and we think of them as a

narrative, and a place in time.

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Absolutely, I think that's

a correct statement.

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- Yeah.

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And as your initial launch,

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as your first story in the marketplace,

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I think you're gonna be

incredibly well served

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by this cigar.

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- You think so?

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Okay, that's awesome, that's really great.

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- This is the Domain Cigar Company.

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Daniel Lance, one of the

partners with Esteban?

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- Esteban Disla.

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- Okay.

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So you've got an artistic craftsman.

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I think that's a safe description.

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- Artisan, yeah.

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- Of Esteban.

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- Yep.

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- This is where the cyber-security-expert-

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cum-accessory-expert, meets craft artist,

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and this is what's born out

of the the relationship.

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- Yeah, absolutely.

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And like I said, I had never

planned to put together a brand

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because people that make beautiful,

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delicious cigars are never available.

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And when Esteban became available,

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and you know, I already knew

that he was growing tobacco,

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and that he was interested in pursuing

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something much bigger,

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I was shocked that he wanted me

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to be a part of that internally,

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and to actually lead the

helm of what that looked like

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from the consumer experience.

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- Well, it's a testament

to the way you show up,

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and it's wonderful.

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I hope that your, as

far as the innovation,

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in involving Boveda in

the brand from the outset,

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can't thank you enough for that.

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It's a real privilege to be

associated with this launch.

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I think it's gonna be fun

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to watch the story unfold for Domain,

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and we'll look forward to being with you

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every step of the way.

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- Yeah, absolutely.

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And your partnership is

incredibly important to us.

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I love the fact that we're

your first integrated branding.

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There's a big commitment to

that on our side, of course.

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And we, I'll give you one example.

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I have two more small stories

I wanna share with you,

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because I've had a lot of experience

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with your product over the years.

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But you know, we actually

had our labels made

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and we had the first sample batch,

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we had 200 of each size made.

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And we looked at them, and we said

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"No," we said, "This isn't

good enough for Boveda,

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"it's not good enough for us,

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"because we're representing

both of your companies"

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and that's the level of commitment

we feel you have to make

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if you're going to take on

these types of partnerships,

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I have to represent you as

well as I represent myself,

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right?

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And we actually canceled

out all those labels,

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and went out, and created

a new printing process

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to get better clarity.

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So that's one example.

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And I'll tell you,

whenever I was a retailer,

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I worked for Outlaw Cigar Company,

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if you're familiar with

them, in Kansas City.

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And what we would do is

Añejo by Fuente, right,

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we would get those every year.

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It's a cigar, you know,

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maybe not every cigar smoker

smokes every day, but sure.

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A couple times a year.

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- It's a special cigar.

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- It's a special cigar, yeah, yeah.

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I like to lay 'em down

for a year or two myself.

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That's just my preference.

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But what we would do is, you know,

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we would sell them as singles,

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and people would normally

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buy a couple of 'em here and there.

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and we would get down to

like the last full box,

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and we would save that box,

not to hide it or anything,

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but just for our customers that we know

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want a crack at a whole box, right,

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and they wanna lay those

down for a period of time.

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One year actually that

box fell behind the shelf,

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in the humidor, so it's

in bad temperature,

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bad humidity kind of

range for that humidor.

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That humidor was really

biased towards the walls.

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You know, the walls had great humidity,

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but that box was sitting back

there and we discovered it.

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We don't even know how old it was.

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And that moment of relief that you get

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when you crack open a box

that's been lost and found now,

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and the cigars are in

there, and they're perfect,

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and they smell beautiful,

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and they have that Boveda

sitting right on top, right?

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The only thing that separates

myself, and [Carlos] Fuente,

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from creating that experience,

do you know what that is?

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Boveda.

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- Thank you.

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- That's the only thing.

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That's the only thing,

because that's what you need

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for a third wave cigar maker

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to be doing point of

service, quality control.

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You have to have some effort,

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from the moment we harvest tobacco,

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from the moment we take

it out of the field,

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Mother Nature is done,

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and a human with their own

two hands are responsible

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for managing the temperature, humidity,

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vapor pressure of that tobacco.

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And everything we do

around creating beautiful,

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delicious cigars, is about

managing the environment

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that those cigars are upticked in.

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So I think for us, it's

incredibly important

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to have your partnership, and you know,

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we thank you for going

along on this journey,

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doing the first integrated branding.

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It's huge.

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We talk about it with everybody.

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So really, really glad to work with you.

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- So a third wave cigar company,

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and we're gonna hear

that term more, and more,

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as time goes by.

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It's been introduced here by Daniel Lance,

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one of the partners in

Domain Cigar Company.

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Can't thank you enough

for the partnership,

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the support of Boveda.

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We'll be with you every step of the way.

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Daniel, thanks so much

for your time today.

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- Appreciate that.

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Thank you so much.

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