Cigar Weekly Interview with Nick Perdomo

Miami, FL, July 2000 -- Tabacalera Perdomo, SA, which began in 1991, started with two Cuban rollers and a sales and marketing staff consisting of Nick Perdomo and his wife, Janine. His grandfather, Silvio, worked as production manager for several of the most prestigious cigar factories in Cuba. His father, Nick Sr., also served as manager for a number of top Cuban producers until 1962, when he joined the exodus out of the country after Castro came to power.

Most of Perdomo's cigars are produced at a 27,000-square-foot factory in the Nicaraguan tobacco town of Esteli, where some 300 workers, turn out 90% of the company's product. Perdomo has factories in Ybor City (Tampa, Fla.), Ecuador and Nicaragua. The company is one of the larger manufacturers of premium cigars made in the United States.

Mr. Perdomo agreed to take time out of his busy schedule to answer a few questions for Cigar Weekly Magazine. He also graciously agreed to answer a few questions from our readers.

CigarWeekly:Please give us a little background, How did you get started? When did your family start in the cigar business?

Nick Perdomo: It seems I’ve been involved in the cigar business since my earliest memory. My grandfather, Silvio Perdomo, worked at the H. Upmann factory during the late ‘30s, the ‘40s and the ‘50s. My father, Nick, Sr., started at the Marin & Trujillo cigar factory and eventually wound up at Partagas. Fidel Castro cut their careers short, however. My grandfather was imprisoned for “anti-communist activity”, and my father was gunned down within view of his own home. He was fortunate to survive. After he recovered, he left Cuba for Washington, D.C. through a church sponsorship and worked a variety of jobs. He eventually moved to Miami, where he became very successful in the trucking business. And my grandfather was eventually freed and joined us in 1973. Throughout my childhood, we would blend and roll cigars in our spare time. After I was honorably discharged from the Navy, I worked as an air traffic controller at Miami International Airport. But I continued to produce cigars on the side, and in 1990 built up enough money to lease some office space in Little Havana and started my factory. That’s how it all began. I owe so much to my father and grandfather – they really taught me so much about every aspect of cigar production.

CW: What changes have you seen since Nick's began in 1990?

NP: Yes, we’re celebrating our tenth anniversary this year, and we’ve made many changes since our inception. I believe that cigar making is an ever-evolving practice and one must continue to strive to not only keep up with current trends among tobacconists and the cigar smoking public, but to innovate as well. I believe our cigars have gotten even better as our company has grown. When we look back at 1990 when we started with three workers, we made 9,750 cigars that year. Today we have close to a thousand workers and we’re certainly blessed and thankful for what has happened to our company. And I sincerely thank all of our loyal customers and great tobacconists who have stood by us during the last ten years.

CW: What are all the brands produced by Nick's?

NP: Our flagship brands are the La Tradicion Perdomo Reserve and Perdomo2. We’re also very proud of our La Tradicion Cabinet Series, La Tradicion Vintage Tubos, Dos Rios, Inmenso, and the Cuban Bullet. But what I’m most excited about is our new Perdomo Estate Seleccion. It’s going to turn a lot of heads at the RTDA Exposition this year. We are certainly proud of all of our premium cigar brands.

CW: What percentage of the cigars you produce are for private label?

NP: At this time only 16% of our sales come from private label work, including Europe. But because of the market acceptance of our work in private brands, people seem to think we’re engaged in more private label work than we actually make. Fortunately, all of our customers we make a private label for have become immensely successful. They include CAO’s L’Anniversaire Cameroon and Maduro, two popular brands for Thompson & Co., and we make Wall Street for Austria Tabak which is only available in Europe. And we’re also looking forward to making a brand for Villiger in Germany in the near future.

CW: What is the approximate production of your premium cigar business?

NP: We’re a closely held private business, and I’m really not at liberty to openly discuss our numbers. Let’s say we are making more cigars than at any other time in our history. If I chose to, we could be making many more cigars at this time. But over the last few years, we’ve had to tightly control our growth to maintain our high standard of quality. Our growth has been deliberate and steady, and we will continue to grow that way.

CW: Where you do see retail sales of premium cigars going?

NP: I think the ultra-premium cigar segment is the fastest growing market segment right now. And for manufacturers like ourselves who have been positioned in that segment for some time and are consistent in quality, and have had no retail or wholesale price fluctuations for a significant amount of time, we see an upward trend in retail sales. We see it now in our monthly numbers and quarterly numbers. And we thank our loyal customers and tobacconists who have supported us for the last ten years in making this possible.

CW: How do you go about taking over a cigar like the CAO L'Anniversaire, with it ardent fans? How do you match blends?

NP: I think you’re referring to their Maduro line because we’ve produced the CAO Cameroon line since its inception. First of all, having my father Nick, Sr. and his brother Antonio Perdomo on your team is a godsend. I’ll put these two cigar makers up against anyone in the world. And I’m at our factory in Nicaragua a minimum of 12 working days each and every month. What we did was we matched the blend of the Maduro line to the Ozgener family’s very precise specifications, but we improved it. And the way we did it was use higher quality and better-aged Cuban-seed tobaccos that have been in our inventory for years. And our rolling methods are stricter than most. And like my father always says, we only know how to make cigars one way, and that’s the Cuban Way. The way my grandfather taught my father and the way my father taught me. Because of this, CAO’s L’Anniversaire sales are better than they’ve ever been in their history, and we’re very proud of our involvement in the success of the brand. For example, the CAO L’Anniversaire Cameroon Belicoso just received 92 points in Cigar Aficionado’s torpedo tasting. It was the highest rated non-Cuban in the issue.

CW: What is next for Nick's Cigars?

NP: Right now is a landmark period in the history of our company. First of all, we are changing our name from Nick’s Cigar Company to Tabacalera Perdomo, SA. Also, our new, state-of-the-art manufacturing facility in Esteli has just been completed, which will allow us to continue our pace of controlled growth well into the new millennium. Also, I’ve recently hired my father’s brother, Antonio Perdomo, to help run the factory. And we have tremendously exciting news that we plan to announce at this year’s RTDA show in San Antonio.

CW: What are you doing new for RTDA?

NP: I’m always excited to go to RTDA to see our customers, many who are dear friends, and to witness the big splash made by all the manufacturers. And I am especially revved up for this year’s expo. First, we’re introducing a new cigar line called the Perdomo “Estate Seleccion”. It’s a Nicaraguan puro, and I would only recommend that experienced cigar smokers try this one. It’s a full-bodied cigar without being harsh and very complex in flavor. And the presentation is the finest we’ve ever created. The Estate Seleccion cigars will be packaged in laser-engraved cedar and mahogany boxes, and stored in trays inside much like a humidor. In fact, the boxes will also have a small humidification device installed within. I’m confident that the “Estate Seleccion” it’s going to be the talk of the show.

Also, we’re developing two new sizes for Perdomo Reserve – the Number 4 is a 5 ½” x 54 toro that tapers into a perfecto shape, and the Number 5 is a 6 ¾” x 54 torpedo that also tapers to a perfecto. We are going to add a bold Nicaraguan maduro wrapper to our Perdomo2 line, which is already available with a Cameroon wrapper. And we’re introducing a new size for Perdomo2 called the Entero. It’s a 5 ¾ x 54 figurado. We’re also adding a tasty maduro wrapper to the Cuban Bullet brand, and we’ve repackaged and added more Nicaraguan ligero to the Dos Rios line. It’s more flavorful and robust. In all, we’ll have 27 new facings to present at the show. We’re confident our customers are going to love these new and significant developments.

CW: Tell us about your new factory.

NP: Simply amazing! It is a state-of-the-art facility that will provide us with the necessary room to grow to meet the demand for years to come. It’s 80,000 square feet – the largest facility producing handmade cigars in Central America and among the largest in the world. It’s where the old world of cigar making tradition meets the new world of advanced techniques and computer technology. We’ll be utilizing cryogenic cigar chambers instead of fumigating cigars to virtually eliminate any and all possibility of cigar infestation. We will be storing our finished cigars in huge aging rooms lined with Spanish cedar. These rooms are monitored by computer 24 by 7 - and if there is any temperature or humidity deviation from our strict standards, the online system will automatically restore it. It’s another step in the quality control process that our customers can truly appreciate. And we also have a large station within the factory where every cigar is draw tested. But even with this cutting-edge technology, the factory is still organized and the work flow is modeled after the Cuban cigar factories that my father and grandfather worked in.

Member Questions

JGIORD: Why are you so into extremely box pressed cigars, and how do you think the public is accepting them. I would also like to know about your feelings toward taking over the production of the CAO L'Anniversaire lines and if you plans on making any changes. Supposedly the blend in the maduros hasn't changed, but the cigars definitely don't taste the same. Any reasons as to why?

NP: Hello JGIORD, yes, box pressed cigars are truly different – and mistakenly perceived as “new” and “radical”. To be honest, I’m paying homage to my father and grandfather with these cigars. You see, in the Cuba of the ‘40s and ‘50s when my family was manufacturing cigars, you used to see a lot of cigars being box pressed rectangulare. And consumers have overwhelmingly responded positively to these shapes. In my experience, for every person that doesn’t like the shape, ten smokers do. As for the CAO Maduro line, we’re extremely proud of being selected to produce this brand for the Ozgener family. And to be frank, we haven’t made any changes to the blend at all. It is the very same as before. But you’re right JGIORD, there is a difference in the cigar.

And the difference is that it’s a superior cigar. Please allow me to explain this. First of all, the wrappers have been double fermented. That means that the taste is much more refined because the tobaccos are older and in better condition. My family didn’t just jump head first into this. We’ve been working with the Ozgener family on the maduro cigar since April of 1999. And we sent CAO’s very first shipment of cigars in April of this year, one full calendar year later. And although they don’t taste exactly the same, I feel it’s still a heavy bodied smoke but smoother and less acidic than the old line with a complexity that’s second to none. And the cigars are all draw tested and aged a minimum of six months. I hope most cigar smokers appreciate these improvements.

kdasilva: I want to know you views on the consolidation of cigar companies into a few major players, the developing trend of European companies buying into the U.S. cigar business. (i.e. SEITA acquiring Consolidated and Swedish Match acquiring a majority stake in General).

NP: Hello kdasilva! My views are pretty simplistic in this matter. I believe industry consolidation is occurring for a variety of reasons. Obviously, as the market becomes increasingly price competitive, mergers and acquisitions are a fast way to achieve certain economies-of-scale like reducing manufacturing costs. Also, I think it’s a precursor to the embargo of Cuba being lifted – and these foreign companies are scrambling to acquire rights to market certain Cuban cigar brands in the world’s largest market – the U.S. But during times of market consolidation, there are also many opportunities that present themselves. Opportunities for smaller manufacturers like ourselves to differentiate themselves in areas of price, quality and customer service. And as I’ve stated before, when the embargo is lifted we will be making cigars in Havana. We still have a lot of friends and family there.

Croozertoo: I just met Nick last night at the Tinder Box here in Charlotte. Very nice guy! We talked about his cigars a bit, but I never got a chance to ask him if he would consider adding a standard shaped (parejo) vitola to the Reserve line, using the same blend, binder and wrappers as the smaller figurados. Maybe a corona or corona larga size. I love the #1, #2, etc., fantastic taste! but really don't care for the extreme shaping.

NP: Hello again Croozertoo! I enjoyed chatting with you! And thank you for the compliment! I’m sorry that you’re not as enthusiastic about the perfecto shapes found in our Perdomo Reserve Nos. 1, 2 and 3 as I am! However, as I stated before, we are introducing two new shapes to complement our Perdomo Reserve line using the very same tobacco blend, binder and wrapper. I think the No. 4, a closed foot toro shape, is right down your alley!

JoCigar asks, "Now that the shapes fad was gone away. What can we expect in the future from you? Although your box pressed perfectos are a thing of beauty, a straight box pressed or round cigar would be nice.

I feel that the rosado wrapper and blend tends to give every cigar you makes a similar taste regardless of who's label you puts on the cigar. Is this going to be your trademark and if not what wrappers and blends can expect to see in the future. Personally I would like to see more in different wrappers.

Are your plans to become a rolling/blending company for hire or will you concentrate on refining your lines.

NP: Hello JoCigar! I don’t believe that cigar shapes are a “fad” or that they’re “going away”. Cigar making is an art, and I believe people appreciate smoking a cigar that is truly unique unto itself. And thanks for the compliment on our perfecto shapes. I do believe that our company produces some of the best figurado shaped cigars in the world today. And we utilize many different box-pressing techniques. We have rectangulare box pressing for our Perdomo2 cigar brand, straight box pressing on La Tradicion Perdomo Reserve, and double box pressing on Dos Rios. And we also have four brands that are traditionally round. Can I do any more (laughs)?

Also, the rosado wrapper in my opinion is one of the finest wrappers in the world today. Although a cigar wrapper imparts a significant amount of a cigar’s flavor, I don’t understand how it could make each brand taste similar. The Perdomo2 is different from the Perdomo Reserve, which is different than the La Tradicion, which is different than the Dos Rios. The tobaccos used for each brand are from different regions, different primings. Each have their own flavor characteristics. But I agree with you on the point of brand diversity using different wrappers.

Actually, we already use wrappers from Cameroon, we use Connecticut Broadleaf, we also use wrappers from Nicaragua and Ecuador. I believe we’re very solid in that respect. We probably have a greater variety of wrappers than most manufacturers, and I invite you to try and smoke our different cigars and I’m sure you’ll agree.

And to answer your final question, only a small portion of our annual sales are derived from manufacturing other brands. And proportionately, that is a lot less than most cigar producers I can assure you. I think that people assume that we make a lot of brands for different people because, thank God, those brands have been very successful. Our plans are to remain focused on making the best long filler, premium cigars we can possible make.

CW: Nick, thank you for spending time with us here at CigarWeekly.com.

NP: Dan, I honestly believe that your website is one of the very few to embrace the camaraderie and heartfelt passion that smoking a fine cigar is all about. It’s been my sincere pleasure to talk to and your members about something I hold near and dear to my heart. Thank you!

Find out more: Tabacalera Perdomo Website