Cigar Hustler Podcast Special Episode Martin Schuster

Transcript

1/2.

Three.

All right, you ready?

OK, so we are here with the one

and only Martin Schuster of

Schuster Tobacco, Bentley

Tobacco.

Your, your generation, you've

been in the, in the, your

family's been in the cigar

industry for over 100 years.

That's correct.

Yeah, absolutely.

And now you're finally kind of

making your way into the US

market, right?

So I mean, I just move the

microphone closer.

Yeah, slide that closer to you.

OK.

OK.

There we go, I will do so.

Perfect.

Better, better.

Oh.

Good, so it's hard for me to

smoke a cigar wire.

Yeah, there's a whole moving

process.

So.

So how long has your family

honestly been in the tobacco

industry?

My family business is founded in

1909 by my grand grandfather in

Germany.

So we are here that 100 15 years

now so.

Over 100 years, yeah.

And you know, what's really kind

of fascinating is that you're.

So you guys make your own

cigars?

Yeah, absolutely.

We're cigar makers.

We have a cigar factory in

Germany.

Very traditional, Very.

Yeah, high quality boutique

cigarettes, right?

We use raw material from all

over the world, from Brazil,

from Dominican Republic, from

Indonesia, from Cameroon.

And yeah, that's where I grew up

in the business.

So I'm 4th generation and I as a

kid I played in the tobacco.

Right.

That's funny because you know

it.

I always get the questions

always ask me like, do you smoke

cigars around your kids?

I'm like, yeah, absolutely.

Like this is a perfectly fine,

you know, they're going to be

OK, I promise you.

And then like when you go to the

when you go to Nicaragua's

Dominican Republic, you always

see somebody's, you know,

there's always kids around it

and all these all these other

things.

So I just, it's funny that it's

demonized in our society so much

when in all reality, it's not

that big of a deal.

OK.

So you make your own cigars,

right?

And you sell all across Europe.

Yeah.

Yeah.

And a lot of that's more common

in Europe is more like smaller

cigars, I would assume, right.

Or.

Yeah, it's a very traditional

way.

You know, the products we

produce are without aroma,

without filter.

So it's just natural tobacco and

there is a tradition in Holland

and in Germany for that.

So in the last years we there

was more interest from other

countries in what we're doing

because it's authentic, it's

real, it's a lot of handwork.

And yeah, it's, it's a good,

good point for us at the moment.

Are there any other families

that do the same thing that you

do that are still kind of in

existence or are you like the

only one?

We are nearly one of the left,

right in this industry.

So we do everything on our own.

So we produce the boxes, we

produce the cigars.

So there are some wood and some

tobacco shipped in our factory.

And at the end of the process we

have nice little boxes with

small cigarillos.

It's very fascinating, right?

And these, this process and that

way we do it, it's really

unique.

OK.

So now you also handle a lot of

distribution, your family

handles a lot of distribution of

cigars that are more made for

the US market.

Now you're seeing a lot of these

companies like Foundation Cle

going overseas, right?

You you handle that

distribution.

Yeah, we do that since years so.

And Roma too.

I got it.

Roma.

Yes, absolutely.

Yeah, yeah, we, for us, it's

important that this is that we

have long term relationships,

relationships with our partners

and we want to be Yeah, like,

like a good partnership for

that.

So with Christian, I have a very

long relationship.

The first time for me in Central

America was when I was 14.

So my father sent me over to

Honduras.

It was my first trip and my

first trip alone so.

You went by yourself at 14.

Yes, yes, yes.

Wow.

But it was easy because I, I

knew Christian, so I that was

fine for me.

But it was, it was an

experience.

How old was Christian at that

time?

I don't know really, but

Christian wasn't.

Right, John Carney's in the

background.

So.

So it's a 16 and a 14 year old

running around I guess.

Christian is older than me, so

he was in Germany two years

before, so I was 12 and I first

Madam.

It would you guys go like the

party or something like I mean

like how did you obviously you

developed a friendship with him,

right?

Yeah, but the German people are

very, they're not so

interesting.

So we also have party people.

So Christian sit in Germany in

Bundes.

So Bundes ancient Sigar town in

Germany, but it's a small city.

We have 46,000 habitants and

there's not much to do there.

You know this.

Yeah.

And if you ask Christian about

this trip, he will tell you

about a cold basement, because

it's very cold in Germany

compared to here, Florida,

right?

And he will tell you something

about food.

Right, so and that's about it.

Yeah, my mother was a little

bit.

Yeah, she didn't exactly know

what to do because Christian

wants cornflakes and pizza.

So I cannot give it pizza all

the time, but OK.

So, OK, so you have these

relationships, you know,

obviously you've known Christian

for a very long period of time

and now you you have Bentley

cigars and you're looking to

come into this market, into the

US market, which is interesting

because a lot of these companies

are going the other way, right?

Why didn't you tap Christian to

handle the distribution for that

brand?

Yeah.

The The thing is we wanted to

create a brand for long term

run.

So my goal was first of course

Germany, Europe where our home

markets are and of course we had

this discussion and he is doing

the warehouse for us here in the

US So we're working together on

that.

But he gave me an honest advice

and said if you want to be

successful in the market, you

need somebody here taking care

for everything because I

personally cannot be here all

the time.

So I need somebody who, who

really understands what we

wanted to do with a brand, who

understands our philosophy

behind.

And so, yeah, I, I had no rush,

you know, for, for me, it was

not that I have to do something.

So I invested everything I had

to develop the brand, but I have

no, no pressure to to make the

next step.

So and yeah, this year it was

perfect timing.

Last year we met our first

trials here in the US see all

the directions out from the

customers and from the

consumers.

And yeah, in summer we had the

chance to come together with

with Connie and he is a perfect

fit because we are on the same

page.

Well, I mean, as he was walking

in and out of the this office,

perfect fits, not necessarily

the best term for Mr. John

Carney as he knocked over like

75 things.

As he's walking around the

studio looks a lot bigger than

it is.

I'll tell you, it's like the

Hulk walking in here or

something.

OK, so all right, so you kind of

start here.

It's been, what, about two

months?

I'd say.

Was it kind of a trial basis for

John?

Was it, you know, OK.

Hey, because, you know, as you

informed us, like you've

officially become a corporate, a

corporate corporate.

Why can't I talk?

Words are fun.

Words are fun.

A corporation in the US, right?

And you, you've tapped him to be

CEO, correct?

OK.

So was the first two months

like, you know, hey, we're

friends and I think that you're

capable, but let's kind of see

what you can do.

Or did you already kind of have

that planned out?

Like, yeah, you're going to be

the guy.

Let's start facilitating this,

and let's start kind of mapping

out a plan.

In in the summer when we had the

first discussion about that, we

figure out that we had some

homework to do before we can

really start.

So that's why we we said, OK,

let's take some time what we

need to to do our homework to do

it really properly.

So when I do something I, I want

to be sure with that and I want

want to have a good feeling with

that.

So, yeah, that's why we it took

the time and of course it's a

question of scheduling.

So I wanted to come here to to

be corporated.

So now in November, we had the

chance.

So I flew in on Saturday and

since Tuesday we are corporate.

And so since Tuesday, it's.

Official.

It's official and he's our CEO

now, so.

He's the CEO, he's the boss.

He's the guy.

He's the boss, at least on

paper.

At least on paper.

OK, so just kind of jumping back

real quick.

So you handle all OR operations

for the Shuster family, you're

you're the top guy.

Yeah.

I'm the CEO since January, so my

father retired, OK.

Was it a forceful takeover?

Did he go quietly?

Like, what does that look like?

You know, I mean, honestly, I

know that I'm saying it kind of

jokingly, but, you know, I have

my own kids, right?

And you know, maybe one day, who

knows, if, if this grows up and

becomes big enough, you know,

would I hope for my sons to take

over or even my daughter or, you

know, was it, what was it for

you?

Did you want it?

I mean, you were obviously been

around tobacco your whole life,

right?

So tell, tell us a little bit

about that.

And then you know, how did that,

what's the exit strategy look

like for your?

Dad for what?

You can say.

Once.

Once you're in the industry, you

never can escape from that so.

Like the Godfather.

That was that was clear for me.

So it was clear for me to be in

the cigar industry, OK.

And of course, I have a very

strong emotional binding to our

family business, right.

So when I started with Bentley

on my own, I wanted to make my

own experience.

You know, it's a few years ago,

so I was a little bit younger

and I wanted to do my own.

So I hated to to take over

something and be the son and

always be introduced over this

is the son of Philip Shuster.

So, you know, so I wanted to

have my own, OK, that was very

important for me to make my own

experiences and have nobody who

says, oh, don't do that, don't

do that.

I want to make my own mistakes,

you know.

So of course it was very

important.

And yeah, last year we had the

discussion and the family what

the future will be for the for

the company, right?

And also for for my sister, Anna

Marie.

And yeah, we decided that the

best would be to, to do the step

now.

And yeah, of course, I was happy

that my my family said, OK, we

trust you.

We, we will give you our family

business, the responsibility.

So it was.

It's a big honor for me, but

also Bigfootsteps.

Right.

So does your dad check in?

Does he say, hey, you know, this

is what you have to do or

anything like that?

Or does he go away?

Did he go away quietly?

I mean, I don't know if for me

personally, like, you know, I

think that that from if I handed

it to my son, right?

And it was my entire life's work

per SE, right?

I think it would be difficult

for me to not say, OK, no, no,

not like this.

You got to do it like this or

whatever.

You know what I mean?

As much as I'd want to trust my

son that he's going to do

things, it wouldn't necessarily

be my way, right?

So does he check in at all or

does he you know?

You know, my father is smoking

cigars all day and my mom don't

likes him to smoke cigars in the

house.

So he has exactly 1 opportunity

is crossing the street and

coming in the factory.

So gotcha.

Of course he's there all the

time.

OK.

And I like that because he is.

Yeah, for me and also for my

people he is he's an advisor.

So we, we ask him of course, for

his opinion, especially on

tobacco, on production

machinery.

But he, yeah, he trusts me.

He respects all my, my

decisions.

He never asked or said, don't do

that, don't do that.

So I, I really, I'm really happy

that we have it that way.

So I have my freedom to do my

own decisions.

And it's, it's always, I have

the family behind.

But as you said, it is his life.

So he build up that and he

worked his entire life in that

in that factory in the in this

business, right.

So it's not easy to say, OK, now

I'm stopped and retired.

So it this right will not never

happen.

Yeah, it's hard to turn off, but

in but, you know, flip side of

that coin, you still want your

son to kind of go through these

processes and make the mistakes

along the way, you know, and

figure things out too, right?

Because that'll just make you a

stronger person for the family

and the company, right?

The good thing was that I could

make my mistakes before in my

own company.

So I think that I learned a lot

about running a business,

running a business in Europe,

because this is completely

different from running a

business here in the US, right?

We have a lot more regulations,

we have a lot more problems to

face and.

It's the Wild West out here.

I I don't want to say it's out

wide WI think that in Europe we

love to do that everything

really properly.

So 120%.

So we have that's why we have so

many regulations on tobacco.

So you would think it's easy to

ship cigars from Germany to

France.

Yeah.

And technically it's OK, but

every single country has

different regulations.

So you have to learn all that.

You have to see what the

consequences are and you have to

do you understand each market

because each European market is

different from the other.

So tax wise and, and access wise

and so on.

So, yeah, I proved that I'm able

to do that.

And I think this is, this was

very important for me to yeah,

to, to to think that I can do

it.

Because this is important.

When you want to follow up

somebody, you, you can, you need

this security in your, in

yourself that you can do that.

So otherwise I, I think I

wouldn't have made this decision

in that way.

So yeah.

Yeah.

I mean, dealing with different

governments in different

countries and doing everything

you can to possibly stay in

those regulations and and those

guidelines, I mean, that's got

to be a huge task.

How many countries you say you

work with?

Around 28 countries.

OK.

So yeah, you're close to 3030

different sets of rules for

everything being distributed.

We're just starting now in

Azerbaijan.

I never shipped the gas before

to Azerbaijan, but I.

Don't even know what the hell

that is.

Yeah, it's another country,

Michael.

It's another country.

Let's let's keep it that it's

another country, right, but

completely new because you have

to start from the scratch then.

That's crazy.

OK.

So do you see, like, you know,

what's really kind of

fascinating to me too is I'd say

over the past, I don't know,

maybe 5 or 10 years, you have

seen more American made cigars.

I mean, not American made, but

intended for the US market Going

over to Europe.

Are you, do you think that

there's a a trend change where

more European consumers are

looking for something that

that's been made for the US

market?

I think that in Europe we had

the situations that we have a

very strong competition in

handmade cigars from the Cubans.

So it is a big market for Cuban

cigars in Europe and.

So they still.

So you guys don't like taste, is

what you're saying?

I'm just kidding, Yeah.

But but since a few years there

is a big chance for other other

products coming in because the

Cubans rises the prices all over

the world and so they are space

now.

And it was a shortage of of,

yeah, availability of the Cubans

also.

And this is a big chance for all

the products coming into that

market.

But of course, you don't have to

overestimate it.

So it's really the biggest

market in the world.

It's the US You cannot compare

that with Europe, right?

But beside that, Germany is a

good market.

That's really fascinating, man.

But it's not so easy like people

think it is.

So you cannot explain why we do

something like that, right?

It's.

Yeah.

I mean, everybody thinks it's

easy.

Yeah, but nothing is easy, No,

but here it's not easy as all.

So I had always big respect for

the US market.

That's why we are so late here,

right.

I wanted to to make my

experience here and see what

it's about because I really have

respect for, for the market and

of course for, for all what you

do here.

So.

Yeah, I mean, it is really

interesting.

You know, you, I mean, it's a

very hard uphill battle, but

you're acknowledging that,

right?

You know, coming into this

market just like any other

market is going to have its

challenges, right.

And like the scary part I that

I've always seen, you know, in

this industry, being around it

for 15 years, is that like

you'll look back after a couple

years and you're like, hey,

whatever happened to that guy?

You know, the brands when

something fails, it isn't like a

failure of like a crash and burn

and they just poof or gone and

you're like, Oh my God, they,

you know, they slowly kind of

disappear out of the market,

right?

And then you never hear from

that person again.

So what are you looking to do in

order to make sure that Bentley

is sustained in the US market?

Like what's your vision?

We, as you said, we are in the

industry for 100 years.

So I always look on the long

term and I don't want to be

quick in the market and quick

out maybe.

So I want Bentley to be a

success here.

That's why we want to grow

organically.

That's why we have a very close

plan how we can do something.

So we don't want to be here in

thousands of spots at a time.

We want to do step by step, see

how it goes, how we have to

adjust things to make properly.

So I, I haven't invested so much

time in my life and so much

money to develop that brand to

be away in two years.

So I want to be really have

Bentley as an as a good cigar

brand in the US market.

And this is a common goal I have

with Connie because we both on

the same side when it's come to

the the long term development.

OK so now you have no

affiliation with Bentley Auto No

0.0 affiliation.

How the hell did you pull that

off?

How did the name Bentley Cigars

actually come into existence?

Our trademarks are from the

1960s and in 2010 we had the

possibility to purchase Bend, a

pipe company.

So actually our brands are

coming from the pipes.

That's why we carry pipe

tobacco, for example in Europe

and pipes, it's just for the

heritage of the brand because

that's where we come from.

And and then over the

development, we get more and

more into the cigar things

because we are cigar people.

And what's important for me and

it's logical that we say, OK, we

don't make only pipes of pipe

tobacco.

So we wanted to make cigars and

it was a journey.

Of course, always it is.

But today we are completely

independent from anybody.

So it's our own brands for all

over the world.

That's pretty fascinating, man.

It really is.

What are you thinking about for

like a, a sales force for your

team or is it just going to be

John for the time being?

Are you going to acquire sales

reps in specific regions or like

what do you, what kind of where,

where do you see that going?

We want to grow organically, so

that's why we started just with

John as a one man show.

But of course we have a plan how

we can grow in the future.

And John is the CEO, so he will

take the decisions what you want

to do.

But we talked about that of

course.

And my goal is that we have a

sales force here.

Of course, we we want to make

the best efforts and serve the

best experience, not only for

the retailers, they're of course

very important, but also for the

consumer.

So we want to do some events,

Bentley typical events for the

cigars and yeah, I want to to

make really an additional A+ for

the brand and for the consumers.

So that's for it's very

important for us to have top

service and of course a sales

force here in the US.

OK.

Now you guys are really known

for making smaller cigars.

Yeah, right.

Could you ever see you making

those smaller cigars for U.S.

market?

We have small cigars for Bentley

of course.

And yes, I also want to bring

these products here in the US We

have not timing for that

actually.

So we see how it can develop and

we make some trials maybe.

But yes, we want to develop a

special product for the US, yes.

OK.

And what about so you have two

major blends right now, right,

You have the white and the

green, yes.

Are you going to is that it or

are you going to make more core

line things?

Are you going to make any L ES

like?

What is your view on some of

those things?

I always wanted to have it as

simple as possible.

So that's why we have actually 2

blends.

It's a green one, which is a

signature blend and the white

one that's with the Connecticut.

We have 5 different sizes and

that's where we are now.

But of course, we want to make

some limited additions.

We want to make something, make

it interesting also for the

consumers some, yeah.

And actually we have this AI

project which we started here.

It was an idea from John, which

is great because our claim is

driven by taste.

So we are driven by the taste of

the consumer.

So it's logical that we ask the

consumer about his ideas about a

cigar.

So that's what makes it so

unique and so interesting for us

and so good fit for Bentley.

So we will develop of course

this AI project Cigar, but

beside that other good nice

things supporting the brand.

And yes I have an idea for 3rd

Blend, but we haven't decided

yet when when to come with that.

So you have some concepts, but

you're still kind of focusing on

the structure of the US market

and what the sales force is

going to look step by step,

right?

1 by 1 by 1.

All right.

So before I let you go, I do

want to ask you one other

question.

You are, you're, you're, you're,

I would say just my own

assumption that you're blessed

and you're cursed by having your

dad with you throughout this

entire journey.

Now those are my words, not

yours.

OK, What do you, what has he

said to you in, in life 'cause I

would assume that he's a big

kind of in some ways like a, a

mentor, right?

What, what would be the one

piece of advice or something

that he has said to you that has

always kind of stuck with you

that you've you said, OK, this

is something that you know I

will continue forth with because

of that?

My dad is my biggest supporter

in life.

So he always he always supported

me and my ideas.

But he is we are from the

northern part of Germany, so we

are easy people and with both

feats on the ground.

And he always said to me,

regardless what you do in your

life, and that regardless if

it's a really good success or

not, it's always important to to

be with your feet on the ground.

So that's what we are and that's

what we behave.

And that's, yeah, it's this is a

kind of given.

Right.

So that's kind of so it's like

kind of always stay focused,

kind of always stay humble,

humble, humble per SE.

Is that what like really what

that kind of means or?

Yeah, no big egos.

Right.

Got it.

The consumer, you, We make

cigars for the consumer, not for

ourselves, right?

It's, it's absolutely not

necessary, but I think at what I

do, it's necessary that the

consumer likes our cigar.

So that's why the consumer is

our our king.

So.

Create something to serve.

Absolutely.

And we want to stay in the

business for next 100 years, so.

It's always.

It's always a question of

sustainability and yeah, be

careful what you do right.

Don't risk too much.

Make smart decisions, right?

All right, that's fantastic.

John, do you have anything to

add over there?

Always.

But we're going to need another

podcast for that.

All right, we'll stay tuned for

the John Carney interview.

That'll happen, I'm sure

sometime soon.

Martin, thank you.

I I know that it's, it's quite a

journey for you to come all the

way out here.

And you know, I know that we're

not a big retail store.

So coming by and saying hi to us

and introducing yourself.

I'm very grateful for that.

And thank you so much for coming

onto the show, man.

Thank you for your support.

Absolutely, man.

All right, guys.

Thanks.

Show Notes

This week we sit down with Martin Schuster from Bentley Tobacco