INTERINTERVIEW...... VIEW......

Proud of the Business

An Interview with Joel J. Sherman, President and Chief Executive Offi cer, Nat Sherman, Inc.

About 45 years ago, I got a phone call from unintended consequence is people will not know a very prestigious distributor in Washington, what they’re buying. If you were to take quarts of D.C. with access to both the Oval Offi ce and the milk and remove the labels, you wouldn’t know Redskins training camp. He was President of the whether you were buying 2 percent, homogeni- YED (Young Executives Division) of the National zed, or skim, so what makes the milk drinker any Association of Distributors (NATD), the smarter than the or smoker? It’s powerhouse organization at the time. It was for punitive legislation for a company that has been anybody under 40 in the business who worked honorable for 80 years. in an executive position. I was on the board of Does the lack of civility in the dialogue the YED and then residing in New York. NATD surprise you? called an emergency meeting in New York for all It’s a one-sided debate. People are afraid to the heads of the major tobacco corporations and take a stand. I’m proud of the business we’re in, I was asked to represent the YED and sit in. The and of the quality of what we produce. dog report had just come out from the and are social lubricants, whose Cancer Society and the Surgeon General, but the bonds have probably contributed to the solution attitude around the industry was just to be quiet of many of the world problems during conver- and it would all blow over. This meeting went sations among world leaders. Can you ima- on for quite a few hours and I fi nally spoke up gine if they asked Churchill to leave the room and said, “I don’t think it’s going to blow over; because he was smoking? At least Governor Joel J. Sherman I think you should question the science,” which Schwarzenegger has the courage to stand his appeared somewhat inaccurate. “Ignore the kid’s ground and smoke a cigar. Many social smokers, EDITORS’ NOTE In 1956, Joel Sherman began advice and wait for it to blow over,” they said, when asked if they smoke, are ashamed to ad- his association with Nat Sherman, Inc. – the and now we are paying the price for that attitude mit that they enjoy tobacco because of the pro- business his father founded – by stocking shelves and arrogance. fi ling against them. and sweeping fl oors. He joined the company full For six or seven years, there was a big It must be so frustrating to work in this time in 1963 but left in 1978 to acquire and boom in the popularity of cigar smoking, industry. How do you classify success when head his own fi rm, Concord Shear Corporation. but it seemed to switch very quickly. you are facing so many roadblocks? In 1990, following his father’s death, he returned Premium cigars is a unique category show- Vince Lombardi said, winning isn’t every- to the company, assuming his current posts. He ing continued growth, though settling down af- thing, but the desire to win is. I’m motivated by has been the recipient of many industry honors ter the boom years. The biggest challenge has that concept. To survive and prosper is to win in and awards and is a Director of the Tobacco not been the increased taxes but the smoking all situations. It’s about informing the public of Merchants Association, an international orga- bans. While they are focused on cigarettes, ci- the facts that are hidden from them and letting nization; an active participant in, and board gars are equally impacted. It is hard to fi nd a adult consumers decide for themselves. member of, several other industry associations; place to enjoy a good cigar these days. Do you ever think about slowing down, and the author of Nat Sherman’s A Passion for Are you concerned that this industry or is it just not possible? Cigars: Selecting, Preserving, Smoking, and can survive when faced with issues like I am very proud of my progeny, who are Savoring One of Life’s Greatest Pleasures. greatly increased taxation? respected in the industry and are fi ne business- There are a number of states and cities people. They could carry on very nobly without COMPANY BRIEF Nat Sherman, Inc. (www that have raised their taxes outrageously to fi x me, so I have cut back on a lot of responsibi- .natsherman.com) was founded in 1930 and their budget shortages. The Master Settlement lities. I like to be heard, but I can’t remember is a leader and innovator in all aspects of the Agreement, through the attorney generals, takes having said, this is the way it must be. It’s a luxury tobacco business. From its fl agship New its share, then the federal government just took new world, and a big portion of the answer to York store at the corner of Fifth Avenue and the largest increase in tobacco product taxes ever. our diffi culties and our problems relate more to 42nd Street to its corporate headquarters in Fort This, of course, hit mainly the middle- and lower- the next generation and how they handle it, be Lee, to Greensboro, , income families because they represent the bulk that with Twitter, or Facebook, or other ways to where the company manufactures its all-natu- of the smoking demographic. So there goes the reach the public. I’m not about to give up and ral tobacco cigarettes, the privately held corpo- President’s promise not to raise taxes. But I have sit back and not say my piece. I encourage the ration sells its products through approximately always believed that there is no such thing as a troops and remind them of the Lombardiisms, 30,000 outlets in the United States and in more problem – only an opportunity, as adult smokers like there are only two or three plays in any than 30 countries worldwide and employs some choose to smoke less but smoke better. game that really count, but you never know 115 associates. The FDA legislation calls for an elimination which ones they’re going to be so you have of descriptives, which means tobacco companies to play every one like it’s the one that matters. When and how did the demonization of the can’t use words like “mild” or “light”. The rea- That’s how you create a good product and a truly begin? son is they feel this infers a safer cigarette. The winning company.• 116 LEADERS POSTED WITH PERMISSION. COPYRIGHT © 2009 LEADERS MAGAZINE, INC. VOLUME 32, NUMBER 4