Check out Nick Libretti’s interview with Javier Estades to talk about his background, how he became to be in the cigar industry, and how the cigar industry has changed into what it is today.

You may or may not have heard of Tabacalera USA, but if you haven’t, Tabacalera USA is the main company that runs Altadis USA, Casa de Montecristo, and JR Cigars. Altadis USA is a cigar manufacturing company that produces the likes of Montecristo, Romeo y Julieta, and H. Upmann. Casa de Montecristo is the cigar lounges that are located across the US. And finally, JR Cigars is one of the largest online cigar stores.

So sit back and learn a little bit about what Javier and Altadis USA contribute to the cigar world that you enjoy so much!

Nick Libretti:
Hello, my friends. Nick Libretti here for jrcigars.com, and I have a very special interview today. I’ve interviewed luminaries from all across this industry over my years. This gentleman, however, is special. Not just to me because I work for him, but also he’s one of the leading figures in the cigar industry. The CEO of Tabacalera U.S.A., Javier Estades?

Javier Estades:
Estades.

Nick Libretti:
I got it.

Javier Estades:
You got it right.

Nick Libretti:
Thank you so much for taking the time to sit down with us.

Javier Estades:
Yeah, thank you for having me.

Nick Libretti:
Oh, it’s an absolute pleasure. So, a lot of people in this industry, you have your Carlito Fuentes, you have your Jorge Padrons. You, however, are basically the mind behind the biggest cigar manufacturer in the country, and I feel like it’s about time people knew who the heck do you are. Because I do. I’m a big fan of your work, obviously smoking it right now, and I work for you. But I think it’s about time everyone got to know a little bit about you, what brought you here today? So Javier, let’s start off. Where are you from originally?

Javier Estades:
Okay, well first of all, thank you so much for this very kind introduction. I’m sure you know my mother and my wife will feel very proud about your words.

Nick Libretti:
As they should.

Javier Estades:
Well, my origins are from Spain. I was born in Spain. Even though I’m sure you appreciate it, that I look more like a Swedish style European, I have family from Sweden . And to be honest, after being nine years in this wonderful country, I feel a little bit American as well, no?

Nick Libretti:
Well, absolutely, especially you’re living down in Florida now, and that’s where everyone’s welcome in Florida.

Javier Estades:
Absolutely.

Nick Libretti:
So, did you come to the United States first, or did you get involved in the cigar industry in Europe? What was the beginnings of your journey there?

Javier Estades:
So, I had the privilege to got my degree, my university degree, here in Washington D.C. in my alma mater, GW, George Washington University. So that was, let’s say, my first formal contact with the United States. Then, I went back to Spain. I did an MBA in Europe, and I work mostly in large, fast-moving consumer good companies.

Javier Estades:
15 years ago, I was hired by Altadis, at that time, to manage the mass market team in Spain. And then, I progress over the years through the company and I end up managing Altadis U.S.A. Nine years ago in United States.

Nick Libretti:
So, would you say that you were drawn in just by, “Oh, this is a job,” and then you developed your love for cigars thereafter?

Nick Libretti:
Or, were you kind of a cigar smoker first and like, “Oh, this would be a great opportunity for me?” How did it kind of work out?

Javier Estades:
Yeah, actually this is a funny story because at that time, I was already a cigar smoker. So when they gave me the opportunity to join Altadis USA, or well Altadis at that time, sorry. It was like a dream come true.

Javier Estades:
Also, at that time, I was beginning to know my wife and her father-in-law, he was a cigar smoker as well.

Nick Libretti:
Oh, that worked out perfectly.

Javier Estades:
So, that worked and that helped me in the relationship as well.

Nick Libretti:
So, can you tell me, I actually had gotten started in the industry a little bit after you. Can you describe, what was the industry like, especially in the United States? What was the premium cigar industry like when you first came over here, started running Altadis?

Javier Estades:
Yeah. So coming from Europe, when you see the United States, it’s a pretty different market. No? Not only because the size of the market, according with our for information around 65% of all the premium cigars are being sold in the U.S., but also because this is a very open market. It’s very competitive. When you see the consumer, he’s very knowledgeable about the product. Very demanding as well, no? So, I think that that makes so unique. And so, interested in the U.S. market. And that is one of the first things, that for somebody coming from overseas, kind of strike you. In Europe, you see a market that is much more regulated, and it’s a market that it’s more niche, it’s smaller.

Nick Libretti:
Right. So for a company like you guys, are you more appreciative of a customer who has more knowledge of it or do you kind of like when in Europe, it’s a very niche market? Because I’ve got to say in the U.S., cigar smokers are getting more educated every day, and it’s got to be hard to keep up with that. You can’t be pulling the wool over their eyes like people did 30 years ago. So, has that been kind of a challenge for you guys? Are you guys more rising to that occasion?

Javier Estades:
To be honest, I feel very good in this market because, I like to build high-performance teams. I like to build brands. And having such demanding consumers, it’s something that is very rewarding because we need to make sure that we bring the best possible cigar that we can produce to meet the demands and the experience, to satisfy the experience of the adult U.S. consumers, no?

Nick Libretti:
Exactly.

Javier Estades:
So in that sense, I think it’s great. The more competition that we have in this market, the more interesting and the more consumers will eventually join and enjoy this beautiful industry that is the premium cigar industry.

Nick Libretti:
Now, the cigar nerd in me is going to come out. This was, and we mentioned it before, a big year for AUSA, and a lot of people, myself included, feel that some of the review sites have been a little critical of Altadis in the past years, but this year you guys came out swinging. You had three on the table, but four, I think, very big, very highly-rated releases. You had the Henry Clay War Hawk, the H. Upmann Hispaniola, the H. Upmann 175th, and of course the Montecristo Cincuenta. Can you give us first a little background about specifically these two? What went into it with the thought process? How long you guys were planning it? And also, which of these two do you prefer?

Javier Estades:
Okay. So, in our organization, brands are the stars. For everything that we do. And something that it’s very nice, about our market and our companies that, differently to other sectors, here we have the capability or the capacity to influence the product from the beginning until it reaches the hands of the adult consumer. So in other words, I think that if we don’t bring good cigars to the U.S. consumer, it’s our fault because we have everything. And this is what we have been trying to do together over these years.

Javier Estades:
We have iconic brands like for instance Montecristo. I mean what a fantastic brand. And we also have a significant number of experts within our company. We feel that that there isn’t only one person that has all the knowledge behind cigars. This is why we created the Grupo de Maestros, which at the end, is the combination of the different experts that we have in each of the steps in our company. So by working with them, by learning about what are the demands for the consumers, and transforming all that know-how into strong concepts, and especially outstanding cigars, is helping us to meet the U.S. Consumer demands. And finally, to get those ratings in case that we deserve them, no?

Nick Libretti:
Right. And another point to make on that is, something I’ve seen from you guys in the past few years, you got us guys, is an increased amount of collaborations with Nicaragua with the Plasencia family, with AJ, reaching outside of your area of expertise to really give the customer what they want. Is that something you guys had planned for a while to really work with these other outside companies?

Javier Estades:
For us, that is a very important part of our business. Is not only that we feel very proud about the knowledge that we have in-house, but we are knowledge and understand that there are great cigar makers out there. This is what we have tried to collaborate. But I would say that more than a collaboration, this is a partnership. And this is why we feel very proud of everything that we have done. For instance with AJ Fernandez. With the Plasencia family, with the Mendez family, we feel honor that also they trust us and that they collaborate with our Grupo de Maestros in really offering a wide variety of the best cigars that are available out there.

Nick Libretti:
Right. Absolutely. Like I said, especially these two right here … top of the year. Greg behind the camera over there, this was his favorite cigar of the year. And, that’s a big deal, especially for a brand like H. Upmann, with all the competition now from the smaller, more boutique guys, to really compete with them on that level is very impressive. Lastly Javier, I just want to talk about the industry as a whole. How has it changed since when you first arrived, or even before that when you were just kind of a cigar smoker? How has the industry changed and how is Tabacalera U.S.A. adapting and moving with those changes?

Javier Estades:
So, in all these years I think that the industry has gone a lot of significant change. I think about this market is still very open, which I think is great. I think that the consumer now is becoming more knowledgeable. As I was mentioning before. I think that today’s not only enough that you bring out standard cigars, but our view’s that you also have to bring that experience to the U.S. consumer. This is why we feel very proud about the footprint that we are offering into the U.S., either through our brands and Altadis U.S.A., but also through JR Cigars or through Casa De Montecristo, no? At the end what we want is the consumer, to really experience, that full enjoyment that being a part of smoking a cigar implies.

Javier Estades:
Let me give you an example of some other industries. I love wine as well. My enjoyment of wine starts not only when I drink it, but also when I go to the store. I search for the bottle that I want to buy. So this is basically what we want also to bring to the consumer.  Is that they really enjoy the full experience of this passion of this industry.

Nick Libretti:
And I think you’ve definitely given them that. For somebody who wants the more lounge experience you have Casa. If somebody wants something quick and easy online, and then what cigars are they going to choose? Well now you have a full range of AUSA products.

Nick Libretti:
Javier, it has been an absolute pleasure getting to know you today. Thank you so much for sitting down with me. Hope to do it again soon at some point.

Nick Libretti:
Guys, for all your cigar needs, jrcigars.com. Want to stop at a nice cigar lounge, check out Casa de Montecristo. And, for some of the best cigars of 2019, Altadis U.S.A., the H. Upmann 175th in particular, look at that burn. That’s just beautiful. Thank you very much.