Philip Gregory Wynne, Felipe Gregorio, Inc.

Posted: June 9, 1998

Transcript of Live Q&A from Tuesday, June 9, 1998, 9:00 p.m. EDT (6:00 PDT)

Moderator -- New York, NY at 09:03:58 PM EDT on June 9, 1998:
Good evening, everyone. Tonight, from his home in Washington, D.C., we have with us Philip Gregory Wynne of Felipe Gregorio Inc, formerly Cigars of Honduras. To make the most of the hour, let's begin right away. First question...

Roger -- Chicago, IL at 09:04:37 PM EDT on June 9, 1998:
What would you say separates your cigars from all other cigars, or what gives your cigars their distinct flavor (not looking for any secret inside info., just curious).

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:05:34 PM EDT on June 9, 1998:
They are full-bodied and very consistent. A new brand I'll be introducing at the RTDA (Retail Tobacco Dealers of America) this August in Nashville, the Black Felipe, will be the most full-bodied maduro on the market. Combined with my other cigars, I'm building a wide variety of brands with full-bodied taste and excellent flavor.

William Jacoby -- The Berkshires, Massachusetts at 09:06:43 PM EDT on June 9, 1998:
How did you get involved in the cigar business? Is it a family business? Or was it a passion you turned into a profession? Thanks for making a great cigar. I love Felipe IIs.

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:07:21 PM EDT on June 9, 1998:
Cigars were a passion of mine and I wanted to make them my life and profession. I went to Georgetown University and used to smoke with my friends, a lot. After school, I was selling helicopters for an Italian helicopter company in the Middle East and became even more fascinated by cigars on trips to Nicaragua and Honduras. Then in the late '80s, before the cigar boom, I had the opportunity to make a passion a profession. It's a great market, and it's getting harder all the time. I still have so much to learn. But I really love going down into the fields and talking to an 80-year-old farmer and coming away with something I never knew before.

Jack DeWitty -- Roanoke, Virginia at 09:08:50 PM EDT on June 9, 1998:
A recent article online suggested that you believe the figurado is tied to the future of the cigar business. Why? And how do you think smokers will like your new Boa cigar?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:09:52 PM EDT on June 9, 1998:
I think figurados tend to make a better product right now. Today's smokers are looking for something different and figurados are a popular trend. For the serious cigar smoker, they appreciate the taste of a figurado. I don't know about figurados being tied to the long-term future of the cigar market, but I think they'll play a role in the short term as manufacturers fight for market share and consumers seek different types of premium smokes.

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:11:08 PM EDT on June 9, 1998:
The Boa will be wider in the middle and narrow at both ends, like a boa constrictor swallowing an egg. It'll be a short smoke, only about 20 minutes. But when the smoker gets to the middle and hits the belly, as I like to call it, they'll really taste the full flavor of a diverse blend of tobaccos. The cigar will be available at the RTDA in August. Why did I come out with it? Because I think smokers are rushed. I hate to see someone put out a double corona halfway through or run around the street finishing a cigar they like. This cigar is a short burst of power for people who want taste. I think people will find it has the flavor of a Churchill with less than half the smoking time.

Mitch Hammond -- Washington, D.C. at 09:11:54 PM EDT on June 9, 1998:
While I was visiting your country, I picked up a bundle of fifty cigars from the local market in Copan. They are the size of your index finger. I call them farmers cigars -- what is the real name of these harsh but good Honduran-tobacco cigars?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:12:36 PM EDT on June 9, 1998:
Those cigars are made in the small, backwoods town of Dulce Nombre, which means Sweet Name in spanish. It's a beautiful, old tobacco town in the heart of the Copan Valley where old ladies roll tobacco right on their thighs. Those particular cigars are a concoction of tobacco dipped in honey and water. The tobacco used is more for cigarettes than cigars, which is why you might have found them harsh. They aren't really for smoking though, more for chewing. The natives, the Indians, cut them and chew them like chewing tobacco for a buzz while they work in the fields. They taste good, though.

Billy Ansen -- Sam Dent, New York at 09:12:50 PM EDT on June 9, 1998:
Felipe, what new brands and sizes are you planning to introduce this year?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:13:46 PM EDT on June 9, 1998:
I'm planning to introduce Felipe Black, which is a full-bodied maduro, as well as Felipe Dominicana, a blend of Nicaraguan piloto Cubano tobaccos with a Connecticut wrapper, as well as Ras Tafari, a uniquely shaped cigar with a Cameroon wrapper that is a charity cigar, with some of the proceeds going to the Haile Selaisse Children's Foundation, which funds African orphanages.

Scot Loftesnes -- Omaha, Nebraska at 09:14:33 PM EDT on June 9, 1998:
Why do you and the entire industry insist on gouging your faithful customers? I used to buy your cigars several years ago when they were REASONABLY priced. I no longer buy them because I have decided to quit giving away my money to an industry which has IGNORED the faithful smokers who stayed smoking cigars and kept your companies alive when cigar smoking wasn't considered so "hip." When will prices fall?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:15:42 PM EDT on June 9, 1998:
I feel sorry for the faithful customer. I really do. But the problem was that it's a vicious circle. We, the manufacturers, were forced to raise prices due to huge increases in our costs. I'm sure you know how the cost of tobacco has just shot up in the past few years. What I have done is try to produce new brands coming in at less expensive levels. But smokers can't expect the old brands that have been successful to go down in price or regulate at an old, lower price. They have to look for new brands from manufacturers they know and trust who are introducing those brands at affordable price points.

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:17:01 PM EDT on June 9, 1998:
But the retailer is involved also. Why would they try and sell a cigar for $3.50 if they can move an $8 cigar? Customers need to change also. They are very sophisticated, but many smokers evaluate quality based on price, and in today's market, if you do that, you're going to overpay for a lot of cigars. Consumers will be going "blah" all over the place instead of finding a cigar that tastes good at a price they are willing to pay.

Steve Gary -- Vista, California at 09:18:11 PM EDT on June 9, 1998:
Why are your cigars selling at such high prices? Also, are your cigars considered super premium?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:19:01 PM EDT on June 9, 1998:
My cigars are expensive because there is a limited amount available and I use the best-quality tobacco that can go into a full-bodied cigar not grown in Cuba. I can set my prices, but as I just said, it's a vicious circle. I am looking into and tasting new brands that I will try to introduce at a moderate price and keep the cost at or around where I introduce it.

Jim Sahelee -- Seattle, Washington at 09:19:41 PM EDT on June 9, 1998:
Philip, I've read in the paper that members of Mr. Sinatra's family are upset by the tie-in of his name to cigars. Was Mr. Sinatra a cigar smoker and did he have any input into the blending of the Sinatra cigars? If he was a cigar smoker, do you know which brand/shape he preferred? Thanks.

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:20:40 PM EDT on June 9, 1998:
I have never heard that his family was upset. In fact, I spoke to several of his family members fairly recently and they said nothing about that at all. Mr. Sinatra was a cigar smoker. He smoked Cuban cigars, although not the most full-bodied of the Cubans. I think he smoked the claros, which is why he really liked the Connecticut shade. When he came to me two years ago, he did have an input in the blending. He wanted a medium- to full-bodied cigar with flavor. That's why he liked my cigars. He was a cigarette smoker and I think he inhaled his cigars, but I can't be sure about that.

Felipe A. Zubia -- Phoenix, Arizona at 09:21:10 PM EDT on June 9, 1998:
Why do you chose to Latinize your English name? Is it to sell a product that some would argue does better with such Latin flavor. Or is it the other way around? Have you Americanized your real name to make it in an Anglo world?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:22:20 PM EDT on June 9, 1998:
Felipe is my name in Latin America. It's what people call me there and it's the name I chose for my cigars. But yes, a Latin name is better for the cigar market.

Chinchilla -- Escondido, California at 09:23:22 PM EDT on June 9, 1998:
Habanica is my favorite brand of cigars produced commercially, by any maker or country. It is my belief that these cigars are the best-kept secret in the cigar world. Have you any plans to expand this line with more aggressive marketing and/or new shapes and sizes?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:24:18 PM EDT on June 9, 1998:
I've expanded the line and introduced a torpedo. But the thing is, I only have a limited supply of wrappers and can only make around 700,000 of those cigars per year. When the amount of available wrapper increases, I will produce more Habanicas.

Randy Robinson -- Lexington, Kentucky at 09:24:43 PM EDT on June 9, 1998:
What is the history behind the Gregorio name as it relates to cigars? My wife's maiden name is Gregorio. Also, where can I buy your cigars in the Lexington/Louisville area? Thanks.

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:25:23 PM EDT on June 9, 1998:
Sorry, but no connection to the Gregorio name. But you can buy my cigars at Martin's Cigar Shop in Lexington.

Brian Bozylinski -- Raven Run, Pennsylvania at 09:26:05 PM EDT on June 9, 1998:
What is your opinion on the cigar industry? How do you see its progression over the next several years?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:26:45 PM EDT on June 9, 1998:
It will be a rollercoaster ride. For the consumer, I think it will be good because prices may regulate and as manufacturers fight for market share, excellent cigars will be available at fair prices. For manufacturers, there will be serious competition as we struggle to build or hold on to market share. Market share, market share, market share--that's what it's coming down to. Demand is difficult to fulfill right now for the better cigars at good prices. The wrapper situation was terrible in the past year. What happened in Ecuador with the weather and Connecticut with some of the blue mold was just devastating. That makes things harder, but we had some great filler, so it balances out.

G. Jones -- Las Vegas, Nevada at 09:27:28 PM EDT on June 9, 1998:
What percentage of your budget was used for ads and promotion?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:27:57 PM EDT on June 9, 1998:
It depends on the brand, but probably between 10 and 15 percent.

Benjamin Hood -- Darien, Connecticut at 09:28:42 PM EDT on June 9, 1998:
In today's market, does a manufacturer of your moderate size have trouble introducing new brands? Do retailers who stock Felipe Gregorio and Don Melo automatically take a new cigar from you or do you have to sell it to them?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:29:30 PM EDT on June 9, 1998:
Yes, a moderate manufacturer has problems getting product to the retailer. The retailer is pressed by the major cigar manufacturers to carry their lines, and often there is a space problem. However, if they know my products, they generally accept a new line because they know that I have a following.

Robert -- Toronto, Ontario, Canada at 09:30:10 PM EDT on June 9, 1998:
Good evening, Philip. I have been smoking cigars for two years and since then my progresion has gone from Dominican cigars to now smoking Montecristo Habanas. I would like to know if you currently sell your wonderful line of cigars in Canada. Second, do you carry any perfecto sizes in your line-up and how long are most of your cigars aged? Thank you for your time and keep making those wonderful cigars and I hope I can finally find one in Toronto.

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:30:46 PM EDT on June 9, 1998:
Petrus and Habanica are available at Davidoff in Montreal. I have not, as of this time, sold Felipe in Canada. And yes, I make a number of perfecto shapes, including the Felipe Belicoso, Petrus Antonius, Habanica Series T, Felipe Dominicana, Don Centenario Liga T, as well as the upcoming Felipe Dominicana Boa and Ras Tafari. Minimum age on my cigars is three years for filler and binder.

Razz Melker -- Brooklyn, New York at 09:31:27 PM EDT on June 9, 1998:
Hey Felipe, how you doing? Any plans for a cigar with Cameroon, my favorite wrapper?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:32:11 PM EDT on June 9, 1998:
Yes. Petrus Dominicana and Ras Tafari, made in the Dominican Republic.

E. Roger Campos, Jr. -- San Antonio, Texas. at 09:32:38 PM EDT on June 9, 1998:
Can I buy your cigars from a catalogue or some other type of mail order by which I do not have to pay retail prices?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:33:40 PM EDT on June 9, 1998:
I don't like to discount my cigars because I simply don't make that many cigars compared to other manufacturers. I don't do mail-order either, except for one place near me in northern Virginia. It's called House of Cigars. The number is 1-888-793-9223.

Robert Carroll -- San Antonio, Texas at 09:34:13 PM EDT on June 9, 1998:
Do you think non-Cuban cigars will use coding to identify which plant and when a cigar is made? It is helpful for those who have favorites and pay attention to aging. Best Regards.

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:35:09 PM EDT on June 9, 1998:
That's impossible to do. How can you keep track of every leaf? You can record which tobacco comes from which farm, but to get down to the leaf would be too much work. About the aging--you have to be careful with manufacturers who rush the aging process.

Daniel Meyer -- Mieders, Austria at 09:35:56 PM EDT on June 9, 1998:
Do you think the quality of the cigars will suffer due to the big increase in production and demand worldwide?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:36:50 PM EDT on June 9, 1998:
Yes, unfortunately cigars have suffered. Things are going back down in quality. Brand names will remain, but the manufacturers who compromise quality will not maintain consumer loyalty. The manufacturers with a passion for the cigars they make, who respect the consumer and want to turn out the best-quality product, they will survive, especially if they realize and the consumer understands that those manufacturers are in it through the good and the bad. You need to have commitment. Also, the bigger, multinational companies with infrastructures that remain intact will be fine.

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:38:11 PM EDT on June 9, 1998:
Some of the smaller manufacturers, like us, will be in a dogfight for market share. The appeal of cigars has changed. The customers around now are more sophisticated than some of the retailers. Consumers can't be fooled and that's good for the serious manufacturer who cares for their market. Brand names will stay. We are more of a niche brand building up a loyal bunch of consumers. What really matters is that the fight for customers comes down to quality.

Josua Akwo -- Bamberg, Germnay at 09:39:22 PM EDT on June 9, 1998:
Do you think that a cigar with a shape not within the normal range will find friends with real aficionados or is it just an eye-catcher for beginners?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:40:27 PM EDT on June 9, 1998:
This refers to what I said before about the Boa. Cigars are like wine. Whatever you're in the mood for is what tastes good. If you like a Cabernet, that's what you'll buy. If you want a Pinot, then that's what you should drink. There's a growing curve to cigars. Serious aficionados, I think, will find different shapes refreshing and a nice change of pace that might become a part of their smoking routine. Smokers--male and female--who like to experience the flavor of tobacco will enjoy these cigars because the taste hits you differently and is more clear.

Wayne Venckus -- Shawnee, Kansas at 09:41:22 PM EDT on June 9, 1998:
How often are you experimenting with different blends of tobacco? Any plans of utilizing Cuban-grown tobacco if and when the embargo is lifted?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:42:03 PM EDT on June 9, 1998:
Yes, I would blend with Cuban tobacco. The Cuban tobacco from the Corojo farm in Cuba is some of the finest tobacco in the world. I'm trying to emulate the taste from that area and I think Honduras and Nicaragua make the most full-bodied cigars available right now. I'm always trying new blends, new combinations. It's a challenge to make an excellent cigar, and I am always looking for help and advice from people who like my cigars or have ideas on how to improve potential new brands.

Dennis Savini -- Pt. Pleasant, New Jersey at 09:43:14 PM EDT on June 9, 1998:
What is the most crucial factor or factors that affect the production and quality of your cigars?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:43:41 PM EDT on June 9, 1998:
On the growing side, most of the time it's luck. What I mean is that there are several factors that can affect tobacco growth and if, say, five of six factors are repeated, the tobacco can taste completely different. The weather. The harvest. I've seen blue mold destroy a field in only a few days. Even tobacco from the same farm after a fairly similar year, climate-wise, can taste different and have a slightly different feel. It's just very hard to repeat circumstances. You can do everything right, and you still don't know, so all the factors are pretty important.

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:44:34 PM EDT on June 9, 1998:
On the fermenting side, you have more control over the quality. Techniques to better the leaf can be used. One thing I have learned is never artificially rush tobacco, and I never will. Also, don't let the tobacco go before it is time. Some brands now are rushing product to market and it's hurting their quality. We won't do that. Let it age, mature and come into its own.

Philip Montalto -- Washington, D.C at 09:44:58 PM EDT on June 9, 1998:
How come you are the most ecological-minded of all cigarmakers?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:46:39 PM EDT on June 9, 1998:
I didn't know that I was. My success is due to the fruits of the soil, so I like to give back as much as I can. For example, the La Ruta Maya foundation, that helps preserve the rainforest in Central America, as well as Mayan ruins.

Kevin Nash -- Boise, Idaho at 09:47:32 PM EDT on June 9, 1998:
I haven't had the opportunity to sample your cigars, however I know there is a place in my town that carries them. I was wondering if you could recommend a cigar in your line that would please the palate. Preferably someting with a hint of coffee. Thanks.

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:48:37 PM EDT on June 9, 1998:
The tobacco and coffee are grown in the same climatic regions, in the altitudes of Central America. Therefore, when you smoke a good premium cigar, you will be able to taste some essences of coffee in it, and any cigar complements a good cup of coffee. La Maximiliana would be the closest.

Kevin Shankel -- Lake Los Angeles, California at 09:49:53 PM EDT on June 9, 1998:
Do you ever walk in to an everyday retailer and get a suprise as to how much they eventually charge for your product?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:51:06 PM EDT on June 9, 1998:
No. I give a suggested retail price and I hope that all retailers abide by it. But due to the fact that a lot of the cigars are back-ordered, there is gouging going on. You can call me at 1-800-336-1181 and I will be happy to check into it.

Chuck Rockefeller -- Briarcliff Manor, New York at 09:51:55 PM EDT on June 9, 1998:
Your quality control is very good. Many manufacturers, especially from Cuba, have suffered in this area. What percentage of your rolled cigars never make it into the finished box?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:53:09 PM EDT on June 9, 1998:
I would say 30 percent do not make it into the finished box. By the way, there are not many manufacturers in Cuba--only one.

Carrie & Rob -- Alexandria, Virginia at 09:53:57 PM EDT on June 9, 1998:
We are quite fond of all your cigars and we are curious as to when the Felipe Dominicana will be available.

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:55:10 PM EDT on June 9, 1998:
In September they will be available at most retailers. Thank you for smoking my cigars.

Hawthorne Wagstaff -- Iowa City, Iowa at 09:55:58 PM EDT on June 9, 1998:
Philip, I know this isn't cigar-related, but you've got to tell us more about this helicopter dealership in the desert!

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:56:41 PM EDT on June 9, 1998:
(Laughs). No comment. OK. I represented an Italian helicopter firm called Augusta in the early '80s, when I sold helicopters for them.

Kevin Shankel -- Lake Los Angeles, California at 09:57:39 PM EDT on June 9, 1998:
Any producers that you particularly admire or whose product you keep pace with?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 09:59:16 PM EDT on June 9, 1998:
I admire all producers that have a passion for the product. The one that I know personally well, that I admire, is Orlando Padron. I admire him for the amount of care and love he puts into each of his cigars.

Mel Gibson -- Houston, Texas at 10:00:04 PM EDT on June 9, 1998:
What is your flagship cigar of which you are most proud?

Philip Gregory Wynne, Felipe Gregorio Inc. -- Washington, D.C. at 10:00:39 PM EDT on June 9, 1998:
The Felipe Gregorio cigars, which I began making in 1992.

Moderator -- New York, NY at 10:00:51 PM EDT on June 9, 1998:
Allright, that's it. Thanks, Philip, and thanks to everyone online for joining us tonight. I hope you enjoyed it. Next month's chat will be set soon. Stay tuned and have a nice evening. Happy smokes.