P. 64 Lord and Lady Carnarvon, owners of the castle made famous by "," partnered with the Foundation Cigar Company to create Castle Cigars. SMALL WORLD, BIGBIG OPPORTUNITIES An English lord teamed up with a cigarmaker based in Nicaragua for a special cigar. What happened next is a business lesson in how identifying new opportunities can help

you grow your brand. ∫ BY ANTOINE REID

If you’ve watched the popular television series “Downton Abbey,” you’ve seen Highclere Castle, a working estate in that served as the home of the show’s fictional Crawley family. Highclere Castle’s history of cigars and tobacco dates back to 1862, the period during which cigars became popular in the Commonwealth. And now the estate made famous by PBS is building on that history by stepping into the premium cigar business with the help of Foundation Cigar Company. It was a tradition at Highclere Castle for residents to retire to the library for a cigar and whiskey after dinner. Adam von Gootkin, co-founder and CEO of Highclere Castle Cigars, was working with Lord Carnarvon, the eighth and the current owner of Highclere Castle, on the development of a liquor business when the idea for a cigar line was presented. Though von Gootkin’s background is in the spirits industry, both he and Carnarvon viewed expanding the idea to include a cigar brand as being a natural move. “When we had the idea to create a Highclere Castle cigar that would truly celebrate the history of cigars at Highclere, I brought it immediately to Nick [Melillo], a friend who is well-regarded in the cigar industry,” says von Gootkin. “We had discussed doing a cigar together for a couple of years, but the right thing hadn’t come to us.” From the start, Highclere Castle Cigars was a collaborative effort among Lord Carnarvon, von Gootkin and Melillo, who owns and manages his own cigar brand, Foundation Cigar Company. Each person was committed to

Photos courtesy of TARA, Ink. TARA, Photos courtesy of creating an exceptional cigar and brought something unique to the table. This cigar would be more than simply a product that would be smoked— it would help extend the Highclere Castle brand itself. Similar large estates have typically been split up and sold off over the last 80 years, but Highclere Castle is still in one piece and is thriving due to tourism, hospitality, farming and property management. Lord Carnarvon explains that the key to keep- ing the estate alive and healthy is to add value to it whenever possible. This is the reason Highclere Castle became part of the “Downton Abbey” series and why expanding the Highclere Castle name through a premium cigar product appealed to Lord and Lady Carnarvon. ➤ The shape, design, and Lord Carnarvon, eighth Earl of Carnarvon, the current owner of color scheme Highclere Continued Highclere Castle and co-owner of Highclere Castle Cigars. nods a touch

to an ancient In order to create a premium cigar product, many at old receipts from his grandfather’s cigar purchases to Egyptian style, factors had to be taken into consideration. The cre- decide what he wanted to see in his own blend. Lord a quiet homage ation and eventual launch of Highclere Castle Cigars Carnarvon’s father also enjoyed cigars, a passion that to the fifth Earl is a great business lesson in collaboration and extend- was later passed on to Lord Carnarvon himself. of Carnarvon’s ing the life of a brand through marketing and different product offerings. The Process of Collaboration discovery of Launching a cigar that would carry the Highclere Cas- King Tut’s tomb. Tobacco and Highclere tle name was a lengthy endeavor. Lord Carnarvon and Though Highclere Castle didn’t launch its cigar product his family have always been careful to only associate the until late 2017, its history with tobacco began long ago. Highclere Castle name with quality products that would During the Victorian era, the fourth Earl of Carnarvon reflect the castle’s extraordinary past. Highclere Castle and the Countess would frequently host dinner parties, has a history of providing exceptional hospitality, includ- after which the women would retire to the drawing room ing fine dining that incorporates local ingredients and and the men would gather in the smoking room with superior spirits and wines. For any product to carry the port and cigars to discuss matters of state. Highclere name it must coincide with the castle’s sense The fourth Earl of Carnarvon served in the cabinets of place, history and design. of prime ministers Disraeli, Lord Derby and Lord Salis- A Highclere cigar would need to fit into the castle’s bury, and he also served as colonial secretary during the rich history and also tell the story of Highclere Castle’s height of the British Empire, turning Highclere Castle history with cigars. To accomplish that, von Gootkin into the epicenter of prominent statesmen and activity. and Lord Carnarvon knew they needed the help of In fact, the British North America Act, which led to the an expert. For this they called on Melillo, who von creation of , was composed at Highclere Castle Gootkin was introduced to by the owners of Mickey in the late 1860s, with the fourth Earl of Carnarvon act- Blake’s, a cigar store and lounge in Connecticut. While ing as a key coordinator. Cigars were often part of these smoking a Foundation cigar together, von Gootkin important events and daily life at the countryside estate. and Melillo discussed topics like entrepreneurship, Other members of Lord Carnarvon’s family were also the meaning of life and things they enjoyed doing in cigar enthusiasts. His great-grandfather, the fifth Earl of their leisure time, and the pair found they had much Carnarvon, smoked cigars and so did his grandfather, in common. Melillo’s experience working in the cigar who imported some of the best Cuban cigars into Lon- industry and with blend creation made him the ideal don. When it came time to find inspiration for Highclere partner for von Gootkin to collaborate with in bring- Castle’s namesake cigar, Lord Carnarvon looked back ing Highclere Castle’s cigar to life. ➤

[ 66 ] TOBACCO BUSINESS [ SEPTEMBER / OCTOBER | 18 ] Highclere Continued Lord Carnarvon and von Gootkin traveled to Nica- band itself was to be elegant, but again, understated. ragua to spend time in Esteli with Melillo and his team. The shape, design and color scheme nods a touch to an There they immersed themselves in the fields, curing ancient Egyptian style, a quiet homage to the fifth Earl barns and factory, and spent days learning everything of Carnarvon’s discovery of King Tut’s tomb.” they could about the manufacturing side of the cigar Highclere Castle released its cigar brand in late 2017, We wanted business. The three men worked closely together to and the product has already earned good reviews. Cigar to keep the determine the concept of the brand. Using the estate’s Advisor called it “a creamy, delicious break from the presentation old import receipts, Melillo was able to come up with a ordinary” while Stogie Press simply said it was “exquisite.” blend that reflected the flavor and style of a 100-year-old Von Gootkin attributes its success to Melillo’s masterful simple yet cigar, something the fourth Earl of Carnarvon might blending skills and the unique association with Highclere regal and have enjoyed smoking with other prominent figures in Castle itself. Currently, Highclere Castle Cigars can be selected the the castle’s smoking room back in the 1800s. found at tobacconists, cigar lounges, restaurants and blue used Melillo also had something else of value to offer in the hotels across the U.S. Distribution plans are already in creation of Highclere’s cigars: access to very rare and place for the U.K., beginning with an official launch on the coat expensive tobaccos that gave the collaborators a broad party at Highclere Castle for some of the country’s of arms for range of options to truly bring their cigar ambitions to leading cigar retailers. They’ve also partnered with Tor the Earl of life. To get the desired flavor profile, they spliced Cri- Imports to bring Highclere Castle’s cigar products into Carnarvon. ollo and Corojo together to create a hybrid seed that the U.K. A search for distribution partners in Europe they named “Nicadan.” During the final tasting session and Asia is underway, though von Gootkin says they are in Nicaragua, they had over 20 unmarked blend vari- being prudent about pacing Highclere Castle Cigars’ eties to choose from—and, interestingly, they all anon- growth in order to protect the brand. ymously selected the same blend. The true challenge, however, came in trying to choose the right branding Marketing the Final Product and box design that would visually represent Highclere Creating the cigar was only part of the process. When it Castle in retail stores around the world. was time to promote Highclere Castle’s cigars, Lord Car- “We wanted to keep the presentation simple yet regal narvon participated in a series of cigar dinners, retailer and selected the blue used on the coat of arms for the visits and promotional events throughout New England, Earl of Carnarvon. Getting the perfect gold paint for New York and Pennsylvania. Lord Carnarvon and von the stamp of Highclere on the front of the box was Gootkin both realized the importance of promotion and difficult, and we had to make quite a few visits to the being the face of a brand from watching Melillo work box factory in Nicaragua to get it right,” von Goot- to promote Foundation Cigar Company’s products, so kin explains. “The boxes are chiseled and shaved by they realized that in order for Highclere Castle Cigars hand from sustainably grown cedar on the east coast to really thrive and grow, they would have to promote it of Nicaragua, and the rounded edges require skill. The and support it with creative marketing. ➤ [ 68 ] TOBACCO BUSINESS [ SEPTEMBER / OCTOBER | 18 ] When Lord Carnarvon (above) decided to create a premium cigar to extend the Highclere Castle brand, he and his team turned to Foundation Cigar Company's Nicholas Melillo (far left) for help.

Highclere Continued One promotion in particular helped draw attention to get off the ground,” advises von Gootkin. “It was very U.K. the brand and its unique background. While attending important to me that the Highclere Castle Cigar was a polo match in Saratoga Springs, New York, Lord not just some licensing deal or marketing gimmick. It CIGAR Carnarvon decided on a whim to offer a VIP visit was critical in this case that Lord Carnarvon was as SCENE to Highclere Castle and an estate tour in his antique involved in the process as the rest of us in the actual The history of cigar smok- Rolls-Royce Phantom at an auction. In fewer than 10 creation of the product and its growth—as true found- ing in England dates back minutes, he was able to raise $12,000 for Code Blue, a ers. All of us operating on the same page makes every- to 1815, when members of the military returned from charity dedicated to getting the homeless off the streets thing run smooth and easy and helps ensure success.” the Napoleonic Wars with during the harsh winters in Saratoga Springs. Not only Staying true to the Highclere Castle brand and Spanish cigars. Soon after, was Lord Carnarvon able to build the Highclere Castle focusing on quality was critical in developing a cigar smoking became brand, but he was also able to leverage the Highclere premium cigar product that would help expand the popular within gentlemen’s Castle name to do some good within a community. brand. “A great partnership happens when people meet clubs throughout London. Much like modern times, There are also more traditional means of promotion, who get on but, really importantly, also share the same however, cigar smoking such as having a presence at this year’s International ideas of innovative design, great attention to detail came under attack by Premium Cigar & Pipe Retailers Association (IPCPR) and, in the case of Highclere, genuinely appreciate the the government. Queen international trade show and convention, which was history,” explains Lord Carnarvon. “This combined Victoria banned smoking held in Las Vegas in July. The brand has also leveraged with a determination to only sell products of the highest in the court, while her son, its partnership with Melillo, who has served as a brand quality to a discerning audience that appreciates the King Edward VII, famously assumed the throne and ambassador in the U.S. and helped to promote and incredibly hard work that goes into making a product announced, “Gentlemen, grow the brand while traveling the country to promote like the Highclere Castle Cigar!” you may smoke.” Foundation Cigar Company’s premium cigar products. Von Gootkin describes the Highclere Castle Cigar While the U.S. has seen project as a pivot for him and Lord Carnarvon but one a shift in the demograph- The Value of Collaboration that also afforded the opportunity to build something ics of the typical cigar consumer, the U.K. cigar Highclere Castle Cigars is the product of a great unique and special. There is opportunity everywhere, scene remains a bit more partnership. This partnership began with an idea and and the chance to collaborate with someone halfway old-school. Cuban cigars required a skilled team with the knowledge and expe- across the globe is easier today than it was years ago. have been the traditional rience to make the business work. In the case of High- “With Nick’s ability to create stunning cigars, we’ve choice, while Nicaraguan clere Castle Cigars, the small and tightknit team had a created something magical from scratch, and that’s my cigars are relatively new to lot of pride in the product from the very early stages, most favorite thing to do,” von Gootkin says. “One of the U.K. market. English cigar smokers are starting and its members trusted one another to ultimately cre- the great things about the world becoming so small is to discover Nicaraguan ate something exceptional. there is such great opportunity everywhere. I suppose cigars, and they are begin- “I recommend before pursuing a partnership that the magic is in the ability to see it and then execute ning to appreciate their potential collaborators be very clear about expecta- on the idea. Sometimes we can get so mired in details quality and uniqueness just tions and realistic about goals. This also helps gauge and operations we don’t see the very simple solution or as cigar smokers in the U.S. have. dedication, without which the project is unlikely to opportunity that is right under our nose.” TB [ 70 ] TOBACCO BUSINESS [ SEPTEMBER / OCTOBER | 18 ]