Interview with Stefano of Compania de Tabacos Revealed

The cigar in your humidor passed through more hands than you will ever see. Before it reached the shelf, someone imported it. Someone cleared customs on it. Someone negotiated with the producer, paid the duties, stored it correctly, navigated the regulations, set the pricing, and built a market for it in a country it had never been sold in before. That work happens in the background of every premium cigar, and almost nobody sees it.

This article is about that work.

Stefano of Compania de Tabacos AG in Switzerland, a distribution house with more than twenty years of history, walks us through the part of the cigar world that usually stays invisible. Regulation, hidden costs, currencies, political climate, what it actually takes to bring a cigar from a factory floor in Nicaragua to a humidor in Zürich, and why none of it is as simple as we would like to believe.

In Part 6, the same questions are answered side by side by both Stefano and Escobar Cigars. Two perspectives, one product, one supply chain. A distributor and a brand, looking at the same realities from very different positions.

What you are about to read is part business, part culture, part reality check. If you have ever wondered why your cigar costs what it costs, why some brands take years to establish themselves in Europe, or what really happens between the factory and the lounge, this is the part of the story you have been missing.

I want to thank Stefano for his openness, and the Escobar Cigars team for participating and making this article possible in this dual format.

Let’s get into it.

Table of Contents

Part 1 – Company Background

Can you tell us the story of your company – how it all started and how the journey has evolved until today?

Compania de Tabacos AG was founded more than 20 years ago by Claude Guggenheim. From the very beginning, the vision was not simply to import premium cigars, but to establish them in the Swiss market with conviction, expertise, and a clear identity. Over the years, the company built a very strong reputation and became a reliable partner for producers, specialized retailers, and aficionados alike.

Last year, the company entered a new phase with a change in ownership, when Manuel Fröhlich acquired Compania de Tabacos AG. This was not a break from the past, but rather the continuation and evolution of a strong foundation. That is exactly what makes the current situation so exciting: there is tradition, long-standing relationships, and extensive experience, combined with new energy, fresh ideas, and a clear willingness to lead the company into the future.

Our journey has never been driven purely by volume. Premium cigars are not a mass-market business. It is about trust, continuity, credibility, and building brands over the long term. That philosophy still defines Compania de Tabacos today.

What personally motivated you to enter the premium cigar business?

My personal passion for cigars began around 15 years ago during a trip to Cuba with my wife. It was there that I realized a premium cigar is far more than just a tobacco product. It represents craftsmanship, origin, culture, time, and emotion. That experience never left me.

Around eight years ago, I founded the Cigar Club Chur. Since then, I have regularly organized cigar events in my home region and gained a great deal of practical experience — not only about cigars themselves, but also about how people experience cigars, how brands are perceived, and what meaningful exchange in this world really means.

One very important person along this journey was Aldo Puncioni, also known as Smoking Moses and today the International Sales Director of J.C. Newman. I have known him for more than ten years, dating back to his time in Venice where he owned a tobacco shop. He is also the president of the Venice Cigar Club, of which I am a member as well. He inspired me greatly and became a mentor to me in many ways.

In addition, I have a personal connection to Venice itself: my mother is Venetian, and I spent many school holidays there. That connection to Italy, Venice, and its cigar culture has had a major influence on me.

After many years of events, networking, and growing knowledge, there came a point where I felt the time had come to fully enter the industry. That is why I am extremely grateful to have been given the opportunity to turn my passion into my profession at Compania de Tabacos.

How has the company evolved since its foundation?

The company has continuously evolved and professionalized over the years. In the early days, the focus was naturally more on building brands and customer relationships. Today, the foundation is much broader: processes, warehousing, regulatory matters, market support, and brand management have all become significantly more complex.

At the same time, the market itself has changed. The expectations placed on distributors today are much higher than they were ten or fifteen years ago. It is no longer enough to simply have good cigars. You need structure, market understanding, patience, reliability, and the ability to adapt quickly to changing circumstances.

I would say that Compania de Tabacos has not simply grown — it has matured. And in a sensitive premium segment, that maturity is extremely important.

What does your portfolio look like today – and how did Escobar Cigars become part of it?

Our portfolio is carefully curated. It is important for us to represent brands that are not generic, but that bring a clear identity, quality, and positioning to the market. The goal is not to carry as many brands as possible, but to sustainably develop the right brands within the Swiss market.

Escobar Cigars fits perfectly into that philosophy. The brand complements our portfolio very well, especially because it is produced by AJ Fernandez — and we are the official distributor of AJ Fernandez in Switzerland. This already creates a natural connection in terms of quality standards and production philosophy.

Escobar Cigars was originally introduced to Switzerland by Claude Guggenheim. The connection came through Kahuit Takizala and Daniel Ewané, the Brand Ambassadors, who had personally met Claude. At the time, Claude smoked both the Maduro and Habano lines and was genuinely convinced by the quality. That actually reflects very well how brands often enter a portfolio in our industry: not through pure theory, but through personal conviction, experience, and real trust in the product.

Part 2 – The Role of the Distributor

As the official distributor of Escobar Cigars in Switzerland, how would you describe your responsibility beyond simply importing and selling cigars?

In our segment, a distributor is much more than an importer. Of course, importing, customs, warehousing, and sales are part of the business — but that is only the visible surface. In reality, we are the connection point between the producer, the market, and the retailers. We carry the responsibility of giving a brand a fair opportunity to succeed in the market.

In practical terms, this means positioning brands, building markets, communicating with retailers, developing pricing structures, managing inventory, launching new products, organizing visits and events, collecting market feedback, and handling all regulatory and logistical matters. In many ways, a distributor becomes a brand ambassador, organizer, mediator, and problem solver all at once.

Especially in the premium segment, it is essential that a brand is not simply “available,” but properly introduced and understood. If that process is not handled correctly, a great deal of potential is lost.

Which parts of the distribution process remain completely invisible to the consumer?

For the consumer, almost the entire infrastructure behind the cigar remains invisible. Ideally, the customer only sees the cigar in the humidor and experiences a coherent brand image. But behind that stands an enormous amount of work.

This includes import procedures, coordination with producers, customs management, inventory planning, quality control, compliance with legal regulations, pricing structures, retailer support, and often precise timing. Especially with premium cigars, everything must be handled carefully because storage conditions and product condition are absolutely critical.

This invisible work is ultimately what allows the consumer to purchase a cigar that arrives in proper condition, is correctly positioned, and is credibly represented in the market.

How has the role of a distributor changed over the last ten years?

The role has become significantly more complex. In the past, distributors could operate in a more traditional way: importing, selling, and maintaining relationships. Today, much more strategic competence is required. You must anticipate regulatory developments, plan more professionally, build brands more carefully, and work much more closely with producers and retailers.

At the same time, one thing has not changed: personal relationships remain essential in the cigar world. We are still talking about a niche market built heavily on trust. That is why relationships with retailers, aficionados, and producers remain central. Perhaps that is what makes this industry unique: it has become more professional, yet it remains deeply human.

What is the biggest misconception consumers have about distributors?

The biggest misconception is probably that distribution is simply a trading process: products come in and products go out. In reality, it is a highly complex business involving many dependencies, risks, and long-term decisions.

A distributor must not only move products, but also build brands, understand markets, maintain relationships, and often manage issues beyond their direct control — such as political changes, currency fluctuations, or supply chain delays.

What kind of expertise is required today to succeed in this environment?

Today, you need a broad skill set. Market understanding, product knowledge, and close relationships with retailers are essential. At the same time, you also need regulatory knowledge, logistical thinking, commercial discipline, and the ability to plan long term — even in an environment that often reacts very quickly to change.

And mentally, you need to remain flexible. Politics will likely affect our industry even more in the future. Passion alone is no longer enough. You also need to be prepared for what lies ahead.

Part 3 – Regulation, Costs, and Market Differences

What are currently the biggest regulatory challenges for premium cigars in Switzerland?

Compared to some European markets, Switzerland is still in a relatively good position. Nevertheless, regulatory requirements are increasing, and premium cigars are affected as well. The workload surrounding documentation, market requirements, and political uncertainty continues to grow. It does not make the business impossible, but certainly more demanding.

What concerns me most is not necessarily one individual regulation, but the overall environment. We live in a time where many things have become more negative, more nervous, and more short-term oriented. In the end, that also influences consumer behavior. Premium cigars are a product of enjoyment, and enjoyment requires calmness, trust, and time.

Even though Switzerland is not part of the EU, are you indirectly affected by EU regulations?

Yes, indirectly very much so. Even though Switzerland follows its own path, it cannot completely isolate itself from developments in Europe. Many producers think on a European or global level, and once new requirements apply in major markets, there are inevitably indirect consequences for smaller markets like Switzerland.

That is exactly why it is important for Switzerland to remain as independent and pragmatic as possible. We should not automatically adopt every development, but instead carefully evaluate what actually makes sense for our market.

How do regulatory differences across Europe complicate distribution strategies?

Europe is not a single market. That is probably one of the most important realities in our business. Every country has its own structure, tax system, retail traditions, and regulations. This makes it very difficult to think about brands in purely “European” terms.

For producers and distributors, this means that what works in one market may not work in another. Strategies must therefore be adapted market by market, which makes everything more demanding. In addition, margins in many European markets are tighter than in Switzerland. As a result, some countries have fewer specialized cigar retailers and more general tobacco or mixed retail shops.

Have compliance requirements increased significantly in recent years?

Yes, absolutely. On one hand, I see this as a burden, but on the other hand, it is also a sign that the industry must operate more professionally. The days when many things could simply be improvised are largely over.

Today, businesses need to work in a more structured way, plan more carefully, and communicate more reliably. For serious market participants, this is not only a challenge but also an opportunity to stand out.

How do taxes, labeling requirements, and advertising restrictions structurally affect the market?

They fundamentally reshape the market. Taxes increase prices, labeling requirements create additional workload, and advertising restrictions make it more difficult to properly establish new brands. This means that even when a product is excellent, it often takes much longer for it to gain traction in the market.

This is especially relevant in the premium segment because we cannot rely on mass advertising. Brands must grow through quality, credibility, recommendations, and personal conviction. That is beautiful in a way, but it requires time.

Which European markets are currently particularly difficult?

Some European markets are certainly more difficult than others, especially where margins are very small, taxes are high, and political conditions are unpredictable. At the same time, one should not forget that Europe is often not the number one priority for many producers. If a manufacturer generates 80–90% of its business in the United States, Europe often becomes more of a secondary market strategically.

This means European distributors need even more initiative and patience to successfully build brands.

Has it become more difficult to introduce and maintain premium brands in Europe long term?

Yes, definitely. Not because the passion within the market has decreased, but because the framework conditions have become more demanding. Long-term planning has become harder. You never fully know what political change may come next, which costs may rise, or how consumer behavior may evolve.

That means today you need more flexibility, more patience, and usually more capital than in the past.

Part 4 – The Hidden Costs Behind the Price

What does the certification process actually cost to bring a premium cigar to the European market?

The exact costs vary depending on the market and product, but one thing is clear: the overall effort has increased significantly. It is not just about direct fees, but also time, coordination, administrative resources, and ongoing compliance efforts.

You could say that certification and market access are no longer secondary topics, but real economic factors. Large brands can manage these costs more easily than smaller or newer projects.

Since marketing is heavily restricted, how does this directly affect sales velocity?

It has an immediate impact. If you cannot communicate a premium product normally, it almost inevitably takes longer for it to establish itself in the market. You become much more dependent on retailers, recommendations, tastings, events, and personal conversations.

This can be extremely effective, but it is slower and more labor-intensive. For new brands, this is especially challenging.

What are the financial costs of extended warehousing?

Warehousing is often underestimated. Especially with premium cigars, it is not simply about square meters, but about quality. If you want to store cigars properly — and that is absolutely necessary — you need the right conditions, care, and discipline.

In addition, inventory ties up capital. The longer products remain in storage, the more it affects planning. In the premium segment, aging can sometimes be an advantage, but economically it remains a cost factor.

How do these hidden costs ultimately affect the consumer price?

Part of these costs is inevitably reflected in the final retail price. The consumer is not only paying for tobacco and production, but also for importation, taxes, storage, logistics, and all related infrastructure.

At the same time, it is important to emphasize that with a premium cigar, the consumer is also paying for a handcrafted product with origin, identity, and craftsmanship. The price is never only about regulation — but regulation is becoming an increasingly important part of it.

Do consumers understand this?

Experienced aficionados generally understand it more than occasional smokers. Those who engage more deeply with cigars know they are purchasing a handmade product and understand that every country has different cost structures attached to it. Awareness is growing, but it is not equally developed everywhere.

Is there a point where products become economically unsustainable?

In Switzerland, I sincerely hope we do not reach that point for many products. In other European markets, however, the situation is already more difficult. There are markets where certain products or segments have become economically very challenging. That is unfortunate because it can lead to a loss of diversity.

Part 5 – The Partnership Between Distributor and Brand

How important is a strong partnership between producer and distributor?

It is absolutely essential. In a regulated yet highly emotional market, it is not enough to simply trade products. You need trust, openness, and a shared understanding of how to build a brand.

A strong partnership becomes especially visible when challenges arise. If both sides communicate honestly and think in a solution-oriented way, a great deal can be achieved together.

What qualities do you look for in a brand?

Authenticity, quality, uniqueness, and a clear vision. A brand must bring something distinctive. It should not only be technically good, but also have a story, a profile, and a clear positioning.

How do you view the future?

Honestly, it is difficult to predict. In some areas, the outlook appears rather dark, especially regarding political developments. At the same time, I strongly believe there will always be room for serious, high-quality brands and for people who genuinely live this culture. The key will be to remain flexible and not become paralyzed by uncertainty.

Part 6 – Joint Questions for Distributor & Escobar Cigars

How do you work together when new regulations are introduced?

Compania de Tabacos (Stefano Nett): That is when close coordination becomes particularly important. Ideally, producers and distributors communicate early and work together to find solutions. I also hope that distributors in Switzerland continue to support each other in such situations, because ultimately we are all in the same boat.

Escobar Cigars: At Escobar Cigars, collaboration with our distributors becomes even more critical whenever new regulations are introduced. We work closely from the early stages to interpret regulatory requirements, adjust packaging, labeling, and logistics processes, and ensure compliance without compromising brand identity. Communication is constant — distributors provide real-time feedback from local markets, while we adapt production and documentation accordingly. This partnership approach allows us to remain agile while maintaining consistency across Europe.

How do regulatory costs impact margins across the supply chain?

Compania de Tabacos (Stefano Nett): Margins remain stable when collaboration works well and both sides plan realistically. At the same time, there are external factors that can have a major impact — especially currencies. For us, the currently weak dollar is helpful. If the dollar strengthens significantly again, prices will need to be adjusted, and that is often unavoidable.

Escobar Cigars: Regulatory costs significantly affect every level of the supply chain. Compliance requirements — including packaging changes, administrative procedures, certifications, and import regulations — increase operational expenses without adding intrinsic value to the product itself. For premium cigars, where craftsmanship already drives higher production costs, these additional expenses compress margins for manufacturers, distributors, and retailers alike. Ultimately, maintaining quality while keeping products accessible becomes a shared challenge across the entire chain.

What is the single biggest structural challenge you both face in the European market right now?

Compania de Tabacos (Stefano Nett): The biggest challenge is political decision-making that is often made without a real understanding of the premium segment, combined with changing consumer behavior. Together, these factors make long-term planning more difficult.

Escobar Cigars: The biggest structural challenge is navigating an increasingly complex and fragmented regulatory landscape across European countries. Despite operating within a common market, each country applies tobacco regulations differently, creating operational complexity and uncertainty. For a growing premium brand like Escobar Cigars, scaling efficiently while complying with multiple national frameworks requires significant resources and long-term planning. Our biggest challenge is really making sure the price stays accessible for the customer while still delivering truly premium quality.

What would you like consumers to better understand about the journey behind a premium cigar?

Escobar Cigars: We would like consumers to better understand that a premium cigar is an artisanal product shaped by agriculture, tradition, and human expertise. From seed selection and tobacco cultivation to fermentation, aging, and hand-rolling, the process can take several years before a cigar reaches the smoker. Each cigar represents the work of skilled artisans and generations of knowledge. It is not a mass-produced product — it is a crafted experience built on patience and precision. At Escobar Cigars, this commitment to quality is captured in our motto: Relentless.

If you could change one thing about the European regulatory environment, what would it be?

Escobar Cigars: We would advocate for greater regulatory harmonization across European markets. A more unified framework would reduce unnecessary complexity while still achieving public policy objectives. Consistency would allow manufacturers and distributors to focus more on quality, innovation, and responsible market development rather than navigating multiple administrative systems. Switzerland remains an important market for us; while EU regulations have little direct impact there, local regulations can still be quite restrictive and require careful compliance.

Part 7 – A Word to the Cigar Smoker

What should every cigar smoker know?

That every premium cigar is the result of a tremendous amount of craftsmanship, experience, care, and logistical precision. What ultimately appears so naturally inside a humidor is actually the result of many people working throughout the entire chain.

Do you have any advice for beginners?

Yes: stay open-minded and try as many different styles as possible. That is the only way to truly develop a sense for what you personally enjoy. Over time, you begin to understand not only what is good, but also why it is good.

And for experienced smokers?

Continue to stay inspired and remain open to new brands, new origins, and new formats. Even after many years, cigars can still surprise you.

If you could give consumers one final piece of advice, what would it be?

Take your time. A premium cigar should be enjoyed consciously and slowly. In the end, that is what it is all about: calmness, enjoyment, and the moment itself.

In Focus

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