Marketing muscle and a careful blend aim for new breed of smoker 

Davidoff: the name alone conjures up images of successful banking types puffing away in the richly paneled back offices of a Swiss private bank as discussions of interest rates and derivatives trading fill the air along with swirls of blue-gray smoke.

If image is indeed everything, then Davidoff, one of the most immortal names in the cigar trade and captained by old-world stalwart Dr. Reto Cina, is engineering a radical departure by joint-venturing with two state-side fast-trackers in design: communications guru Peter Arnell and cutting-edge music pioneer Steve Stoute. The triumvirate has jointly launched a line of super-premium cigars that have the prestige of the name behind them combined with new wave marketing and design as they attempt to capture a breed of customer with a product often associated with maturity and sophistication.

To date, the brand has caught fire among hip-hop musicians and others in the Introduced late last year, Zino Platinum cigars represent a partnership between PASS Ventures and Oettinger Imex AG, the parent company of Davidoff Cigars of Geneva and the exclusive distributor of Zino Platinum cigars, which according to their marketers, represent a fusion of time-honored cigar tradition and current pop culture and lifestyle trends. The goal is to pack old world charm in a new wave wrapper.

Peter Arnell and Steve Stoute are responsible for creating a large part of American popular culture, said Cina, president of Oettinger-Davidoff Group. We couldn’t think of better partners for launching Zino Platinum. Zino Platinum's Crown Series has three initial shapes in its opening line-up: Double Grande, a double corona that’s 71/2 x 50; Stretch, a 8/4 x 50 in perfecto grande shape; and Chubby Especial, a zeppelin grande at 57/s x 64. Each of the Crown Series comes pack-aged in a finely tooled sliding aluminum box that contains three cigars, custom black Zino Platinum matches, and a side, striking panel. Manufacturer's suggested retail prices range from $87 (Double Grande), to $102 (Chubby Especial), and $117 (Stretch). In addition to Davidoff of Geneva stores, a limited number of select retailers, hotels, restaurants, boutiques, and clubs are selling the brand.

While it’s one of the most expensive cigars ever released at about $40 a stick, price doesn’t seem to be an obstacle, at least not for now among Davidoff fans. At the flagship Davidoff of Geneva store, located in midtown Manhattan, sales are better than brisk according to manager David Kitchens. “I've sold $50,000 worth of them,” he said. Just for Him Cigars, Springfield, Mo., which is retailing the new line, describes the flavorful cigars as full bodied with some spicy sweetness on their website. Most retailers who have been showcasing the new brand have direct links to the Zino Platinum site to provide product information supplied by the manufacturer.

Expanding Quickly
Earlier this year, a follow-up line Zino Platinum Scepter was introduced featuring a revised blend created specifically for its five smaller sizes, consisting of Chubby (4’s/is x 54), Grand Master (5’/2 x 52), Low Rider (6 x 43), Shorty (41/2 x 43), and Stout (7 x 38/52). The concept is to deliver a similar smoking experience as the original Platinum Crown Series, but in a shorter timeframe. As such, these shapes deliver a more intense flavor more quickly. Scepter Series cigars are packaged in 12-count cans (16 count for the Low Rider and Shorty), which retail for $122 to $162 per can. Like their Crown Series predecessors, they’ll only be found in select retail shops, no surprise considering Davidoff’s devotion to the high-priced good life.

Davidoff and the Arnell Group are also planning a lifestyle line of smoking accessories and other accoutrements, which is currently in the works. The brand expansion is a good match between partners as, beyond cigars, the Davidoff mark currently extends to perfumes, cognac, coffee, and writing instruments.

Scepter is selling very well, says Sam Driban, co-proprietor of Black Cat. We’re generally selling them to a younger customer (30-40), and we’ve had several women buy them as gifts. Driban said once clients get over the initial price shock they usually become satisfied Zino customers and many like the slick packaging. He also credits the point-of-sale material as helping to introduce the line. The POS is attractive. Davidoff’s not on my A-list as a company but they did a good job with Zino. I’m very happy.

It’s not just the cigars and the packaging that’s new. A new distribution wrinkle, however, makes these cigars available on call thanks to an exclusive concierge service in which customers can receive product information and have their orders delivered to them in some markets on the same day by calling a dedicated telephone number.

These full-bodied cigars are made by Hendrik Kelner in the Dominican Republic, featuring a filler blend of three Dominican tobaccos: one variety Piloto tobacco and two types of San Vicente tobaccos grown in separate regions with differing tastes and strengths, all of which account for 75% of the blend. The remaining 25% is Peruvian tobacco a native leaf called Habano tobacco. All filler tobaccos are aged from between four and five years. The binder is Connecticut seed leaf, grown in the states and fermented and aged for four years, while the wrapper is a reddish-brown Connecticut seed variety grown in Ecuador, also specially fermented and aged for one year. The line’s been well received, says Matt Dorch of Regency Cigar in Greenwich, Rhode Island where the Zino three-packs have been sold since the end of last year.

Customers are intrigued by the cut, shape, blend, wrapper, and packaging which are slightly out of the ordinary. Davidoff has done a good job with the P0S material like bags, placards, and pamphlets. Dorch describes the mark-up as healthy but not huge and says the price has not been an issue among his clientele. “Cigar smoking is about much more than smoking a cigar,” says Peter Arnell who had a key role in Zino’s look and packaging after helping elevate the images of Reebok, fashion house DKNY and Samsung. It represents a way of life and status. Zino Platinum represents today’s young and affluent. 

Stoute, former president of Black Music and executive vice president at record labels Geffen and A&M, helped launch Eminem’s debut album, as well as work by U2, Eve, and Limp Bizkit. Known for having an eye for up-and-coming trends, cigars are new territory for Stoute and Arnell. We’re breaking new ground, says Stoute. We enjoy cigars but do not fit the stereotypical stodgy prototype. The business was born out of that realization.

The Power of the Press
To support the up-and-coming image attractive to a younger smoker, they’re putting carefully selected star power behind the brand. And when celebrities are in attendance, the press often responds, as Entertainment Weekly, People and several big-city dailies have covered various stages of the launch. At one typical Zino Platinum bash last November in Las Vegas, Steve Harvey, Keenan Ivory Wayans, Damon Wayans, Shawn Wayans, and Wilmer Valderram (That 70s Show) joined Tara Reid and Rosario Dawson for a Zino party. The event was hosted by Naomi Campbell and was part of the Las Vegas Big Smoke cigar event, The turnout and coverage was not the usual media response a tobacco product generally receives but big budgets, a recognizable name, and show business connections can have their rewards. At the GQ Men of the Year after party last December, a Zino Platinum cigar bar ensured that the Zino Platinum band was well photographed throughout the night.

Making a big splash is one thing. Creating a steady, long-term seller is another. Or as they ask on Madison Ave., Does it have legs? At about $40 a cigar (retail), it’s not likely it will play in Peoria, but that’s not what this product, or just about any luxury goods manufacturer, targets. Every good product launch aims at a niche, and this launch is no exception. Davidoff knows the luxury or high-end market. And while it’s off to a good start with supportive marketing material, a press blitz, a devoted parent company, and hard-charging partners, it’s likely that Zino has found a permanent niche in a business that’s been less than sper in recent years.