Ever wondered what it takes to build a successful brand in one of the world's most traditional industries?

This week, I'm sharing insights from my conversation on the podcast with my childhood best friend and CEO of El Mago Cigars Nick Fusco. Nick is building one of the fastest-growing new cigar companies on the market!

And he’s doing it in his 20s!

This conversation highlights what its like to build a cigar company, building a brand with a meaning and story behind it, and what it’s like to build a successful company in an old school market!

Let’s Dive In!

This Week’s Founder Interview

Breaking Into a Traditional Industry as a Young Founder

When Nick launched El Mago Cigars three years ago, he faced an uphill battle: an industry where the average player is 40-70 years old.

"Being so young in an industry where retailers, manufacturers, and distributors are probably in their forties to sixties...that difference in age was a big challenge," Nick shared.

Adding to the difficulty, he chose to launch in South Florida—considered the hardest cigar market in the US. Despite these obstacles, Nick persisted with confidence in his product.

What started as a tribute to his grandparents, who tragically passed in the Surfside building collapse, has grown into a thriving business now available in 46 states and supported by 12 sales representatives.

The Three Essentials for Starting a Cigar Brand

For those curious about breaking into this traditional industry, Nick outlined three critical components:

1. Access to a Reputable Factory: Finding a factory partner willing to work with a newcomer is crucial. Nick credits his partnership with Miguel Pinto of MGE Cigar Factory: "Miguel was willing to take me by the hand, show me how to make the blends, and take me to the fields."

2. Distinctive Packaging: Instead of following industry norms with wooden boxes and subdued colors, Nick created vibrant, eye-catching packaging in blue, pink, yellow, and orange. "A lot of people said 'we don't have to try to sell your product because the customers will find it.'"

3. Hands-on Distribution: "You gotta get distribution yourself to start. Build a base so other people start seeing your product everywhere, believing in you, wanting to sell it."

The Art of Cigar Blending

Each cigar consists of three components: the wrapper (outer leaf), the binder (inner layer), and the filler (center tobacco). Like fine wine, tobacco leaves vary based on where they're grown, how they're aged, and which part of the plant they come from.

El Mago's approach differs from competitors. Rather than creating one blend in multiple sizes, Nick develops distinct blends for each product:

"Every blend is a different smoking experience. You might have a morning cigar, an afternoon cigar, an evening cigar."

"Handmade to Handheld": A True Luxury Experience

In an age of automation, cigars remain one of the last truly artisanal luxury products:

"Cigars are one of the few products that are completely handmade. Someone plants the seed by hand. They cut the leaves by hand. Hang the leaves in the barn by hand."

Every step—from planting to rolling to packaging—involves skilled human craftsmanship: "There's no machinery involved except for a scale to weigh the tobacco...everything is done by hand."

This traditional approach creates not just a product but an experience that connects smokers to a tradition dating back thousands of years.

The Future of El Mago

Looking ahead, Nick plans to:

• Release several new blends (with "The Jaguar" coming in April)

• Expand to all 50 states

• Enter at least five international markets

He sees particular opportunity internationally, where premium non-Cuban cigars provide exceptional quality at more accessible price points than traditional Cuban options.

As for the industry itself, Nick believes cigars are finding a renewed place in society as people seek meaningful social connections: "With technology on the rise, a lot of people are getting more socially distant...Go to a cigar lounge."

Connect with Nick and El Mago Cigars

If you're interested in learning more:

• Instagram: @elmagocigars

• Website: elmagocigars.com

• Direct email: [email protected]

For cigar enthusiasts, look for El Mago at the upcoming PCA event in New Orleans at Booth #1953.

What's Your Experience with Luxury Brands?

Have you tried building a business in a traditional industry? What challenges did you face? Reply to this email with your thoughts.

Until next time,

Andres Sanchez
Host, Beyond the Wealth Podcast

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