"Cigar prices are set to soar".

alexis aazam zanganeh cigarmagazin cigar prices will explode

Alexis Aazam Zanganeh has been a central figure in the specialist tobacco trade in French-speaking Switzerland for over 20 years. According to the owner of the first La Casa del Habano in French-speaking Switzerland, the market for both Cuban and non-Cuban cigars is set to become very interesting in the near future.

What is the appeal of a cigar for you?

Alexis Aazam Zanganeh: I like the idea that a series of people have made this cigar by hand and thousands of miles away, in a traditional way that hasn't changed in 100 years. It's also because I'm a very traditional person. Cigars are absolutely anachronistic. They're outside the rhythm that the world, business, imposes on us. I love lighting up a longfiller, taking the time to reflect and observe. The cigar allows us to get off the hamster wheel and observe the situation from the outside. But at the same time, it brings us into contact with other people. There's something unifying about it.

Before taking over the family business over 20 years ago, you worked as a psychologist. Did your studies help you in any way in the cigar business?

At first, it even bothered me, to be honest. I was too empathetic. In the business world, you also have to be tough, fair, but strict. But I learned quite quickly. And over time, that became an advantage, because it enabled me to develop a global and also human vision. Sometimes, when you want to build a relationship with someone, you have to know how to stand back and wait. My knowledge of psychology enables me to listen to people and make the right decisions.

How would you describe the high-end cigar market in French-speaking Switzerland?

In the cigar business, human relationships are very important. The market in French-speaking Switzerland is competitive and chaotic. There are a lot of small players selling cigars. This is good for diversity. But there isn't enough room for everyone, and some disappear because they don't have the financial means to take the next step. The entry ticket is high, and it's even higher today. The cigar business no longer allows for approximation or dilettante work. In my opinion, small structures won't last, or at best they'll stay where they are. A company that has no medium- or long-term vision, especially in these complicated times, has little chance of survival in my opinion.

Where does your company Cigarpassion stand today?

From a family business with two or three employees, we have grown into a company with over 25 people. Active in manufacturing, trading and wholesale, we import and distribute various brands, and have imported brands such as Arturo Fuente, Ashton or Padrón. We have our own brands such as Calibre or La Couronne Selección Privada and Gran Reserva, which we have manufactured in the Dominican Republic. Since 2008, we have strongly developed our online business. And for the past year, we have also had a La Casa del Habano in Nyon, in addition to our usual store. Our concept doesn't exist anywhere else! It's really incredible. Customers are delighted and come from far and wide to visit us.

How long have you been working on opening such a home?

In my mind, the idea has been around for 20 years. It was my parents' dream. And now the dream has come true. This is an extremely important step for us. La couronne is finally complete. I'm proud to be part of the excellence and prestigious future of Cuban cigars.

In a short space of time, the number of casas in Switzerland has risen from three to five. Is the market saturated for this reason?

I'd say so. Especially considering the current situation. Availability of Cuban cigars is difficult, and many changes are on the agenda. The pandemic has exacerbated existing problems. Recent price increases for both Cuban and non-Cuban cigars have changed the cigar landscape, and much will happen in the months ahead. De facto, the Swiss havana players are going to concentrate, and for the solid and historic houses, the great Swiss families of Cuban cigars, known and recognized in our country, the return to fundamental values has already materialized. True cigar aficionados, those who know how to recognize an exceptional handcrafted product, have already realized that quality, service, reputation, reliability, the art of conservation, expertise - in short, history with a capital H - are all part of the great cigar houses. We're one of those family-run, traditional houses where customer service isn't a marketing ploy, but a know-how we've been cultivating for over 40 years!

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alexis aazam zanganeh cigarmagazin cigar prices will explode

What does this mean for the market?

The current situation is as follows: The demand for Cuban cigars is enormous. And there aren't enough goods. Prices will remain as they are because production cannot be increased, the 2021 tobacco harvest has not been particularly good in Cuba. I think development is heading in the same direction as for rare Scotch whiskies or rare Bordeaux: prices will explode. It's interesting to note that players who have based their business model on what has come to be known as the "discounter" no longer have a place in today's market! How can you explain to your customers, to whom you used to offer huge discounts, that this will no longer be possible? After all, their main motive was the discount. We're cautiously observing the colossal efforts these players are making to change their "discount" image. It will be interesting to see whether the customer will adhere?

Will Habanos in future be unaffordable for the average person?

There will always be affordable cigars. The range of Cuban products is substantial, and there are products and brands that are quite affordable and competitive with non-Cuban cigars from the big houses. But the question is whether the middle class will still be able or willing to afford a Cohiba in the future. There are luxury products, such as exceptional wines, exceptional watches, exceptional cars, exceptional clothes, and not everyone can afford them, which is why luxury carries with it an element of the unattainable. Current and future inflation won't help matters.

It's true that the parallel import of Cuban cigars is currently blocked by the situation.

And that's not going to change as long as the market is kept under control by an overly restricted supply. Of course, I'm delighted about this. It wasn't right for us to wage this senseless price war in Switzerland, selling, for example, a case of Partagás at a 30% discount. These prices no longer respected the work of tobacco growers, rollers and, ultimately, specialist retailers. It was an immediate and very violent destruction of value. When you sell discounts instead of doing your job as a cigar maker - advising, listening and sensing the customer's appetites, trying to understand them and projecting yourself with them into the product's adventure - you lose the essential, and the customer loses even more. Cigars are so much more! This magnificent product deserves better as a true ambassador. I think that if the consumer buys a box of cigars without a discount, he'll have more respect for the product and for the person who provides the top-of-the-range service he's entitled to expect.

The Swiss trade has also benefited in the past from the fact that Cuban cigars are cheaper in our country than abroad. How many Chinese customers do you have?

What I can tell you is that we have many customers all over the world. The Chinese, of course, are important, but they're not the most important. There's also the Arab world and Europe, of course, which are markets that are constantly growing. The real challenges are of a different nature, and are focused more specifically on current and future hygiene movements.

What does the price increase mean for La Casa del Habano?

I consider them a great opportunity, because they put Havana cigars where it belongs. At the top of the pyramid. We'll see if it works. I think it will. Nor do the winemakers at Château Petrus or Cheval Blanc complain about being able to sell their wines at the absolute top level. I'm very happy to be able to run a La Casa del Habano, but also very happy to have two specialist stores. The market will be very interesting in the near future, not only for Cuban cigars, but also for non-Cuban cigars.

What are you like as a boss?

With me, it's all about loyalty and integrity. We're still a family business. If you want respect, you have to give it. That's what I do with my colleagues. When you have as many people as we do, it's harder to create a positive energy. You don't have to go to work for pay. I don't want my employees to be wage earners; they have to participate in the company, contribute their ideas, they also have things to say, things to improve. It's important to listen.

What are your objectives?

We want to consolidate our position. To become better at what we do, even more precise and consumer-oriented. This is also what customers expect from higher prices. This will lead to a reorganization among suppliers. Those who can't offer the service won't survive. The challenge is to bring a traditional, handmade product with a history going back centuries into the modern world, without betraying its values. We've done a pretty good job of this over the last ten years.

Alexis Aazam Zanganeh was born in Iran in 1971. In 1974, his family moved to Switzerland and set up tobacco shops in Geneva and Nyon. Aazam studied psychology in Geneva, but was already working part-time in the family business while still a student. He has been running the Nyon-based company Cigarpassion for 24 years. Among them, the specialist store La Couronne and, since last year, the first La Casa del Habano in French-speaking Switzerland.

cigarpassion.ch

Interview by Cigar magazine.

Interview : Tobias Hüberli
Photos: Njazi Nivokazi

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