Luxury Cigarette Brands: European Royalty

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Features

Europe may have her royal houses, but she also boasts a remarkable lineup of exquisitely “royal” cigarette brands steeped in history, tradition and, of course, luxury.

By Thomas Schmid

Bernadotte, Bourbon, Grimaldi, Orange-Nassau, Saxe-Coburg and Gotha, and Windsor. Juxtapose these with Davidoff, Ducal, Dunhill, Parliament, Sobranie, and Tradition. A common theme unites these two lineups. Correct, both list European royalty. But while the first refers to some of the presently reigning royal houses of Europe, the second details a selection of the most prestigious and luxurious cigarette brands that originate from the continent – tobacco royalty, so to speak. But why are these standing out in a veritable sea of brands? What makes them so luxurious, even coveted? And why do these brands enjoy such a “royal” reputation with discerning end consumers, many of them in Asia?

What makes a luxury brand?

“Luxury brands must offer the customer a unique selling proposition in addition to a corresponding packaging appearance,” explained Peer Lorenzen, head of global marketing and sales at Germany’s Joh. Wilh. von Eicken GmbH, owner of one of the world’s youngest luxury cigarette brands, Tradition.

“By using a luxury brand, the consumer clearly wants to distinguish himself,” he said. “The chosen brand [therefore] must radiate a positive image that also ‘rubs off’ on the consumer.”

But, Lorenzen also pointed out that a carefully curated brand image perhaps constituted the single most important attribute that elevates a cigarette brand into the luxury category.

Meanwhile, Zuzana Buckingham, head of strategic planning for the Davidoff cigarette brand at Imperial Tobacco Limited, insisted that four primary factors have to converge to assist a cigarette brand in being perceived as luxury: superior quality, desirability, heritage, and relevance to the end consumer.

“The essence and character of the brand is indeed the most important attribute of a luxury brand. The brand is a result of many things that consistently work in symbiosis over time,” she said. That included price, the quality of the tobacco and other materials used, aspirational communication, selected availability, but also the brand’s ability to renovate and adapt itself under the dynamic and restrictive conditions that the tobacco industry is constantly facing, she added.

Last but not least, Japan Tobacco International’s vice president for flagship brands, Andrew Ahern, offered his very own definition with regards to the company’s luxury brand, Sobranie: “When we speak about ‘luxury’, we are referring exclusively to the brand positioning itself among other cigarettes brands.” And as “luxury” becomes ever more omnipresent in the cigarette arena, a unique point of view also needed to come into play. “If the brand doesn’t bring something new to the discussion with consumers, it cannot sustain its dedication to luxury,”

Ahern insisted. “Sobranie has managed to do exactly that, shifting to new points of discussion ever since [it was first launched in] 1879.” Ahern also observed that “consumers have an increasing appetite for quality products, supported by an individual, authentic story.”

Consumers have the final say

Of course, regardless of how carefully a brand positioning profile has been shaped and curated over many years, it always remains inextricably linked to end consumer perception. If a profile is not accepted by the consumer, it is pretty much worthless. Consumers often say that it’s the quality of the product – they quote a more refined smoking experience and high-end packaging - which makes the difference between a luxury cigarette brand and a cheaper brand. “But, the standards in the industry have been significantly raised over time, and even cheaper brands [nowadays] often perform as good in those quality attributes during blind tests.

So then it’s down to consumers’ expectations from the luxury brand and their perceived experience,” divulged Davidoff’s Buckingham. JTI’s Ahern had a slightly different take on it, though. “Today’s consumers look for the best; not the most advertised or most popular,” he said. “[They] recognize that expertise is priceless, not something that can be bought but something acquired by being more aware of the world around you. They understand that value lies in fine craft and not just in price.” Yet von Eicken’s Lorenzen also hinted at consumers’ vanity.

“Luxury brands are often consumed by people who want to show others that they are able to afford them,” he asserted, but also cautioned: “It can also be the opposite. [By showing off a luxury brand] a consumer just may want to project the impression that he belongs to an exclusive group, although in reality he cannot really afford it.”

Luxury cigarettes for special moments

There we have it. The entire aura enveloping a luxury cigarette brand and radiating out to the consumer can lift the social status of an individual, or at least the perception of others thereof. And isn’t this what we all secretly want (but rarely openly admit to)? Maybe, but in the end, this perhaps goes down as to why “European royalty” appears to enjoy such popularity in many Asian regions. Buckingham has observed that “there are countries where personal status and social hierarchy are more important, and luxury brands help signpost this status.”

However, she also said that this longing for status could not be assigned to clearly defined consumer demographics. “Luxury brands tend to be smoked by a variety of consumers of different demographic specifics. And individuals often tend to have a ‘repertoire’ of brands, smoking cheaper brands during the week and more expensive cigarettes during the weekend, quoting this as their ‘special moment’.”

Buckingham nevertheless refuted the notion that it was predominantly Asians who flocked to luxury brands. “We don’t see this trend that much. European cigarette brands are aspirational in many ways, but they are often deemed not for a daily consumption.”

European quality woos Asia

Nevertheless, Lorenzen identified an unmistakable link between a luxury cigarette brand and its country (or region) of origin. “I believe it’s [our brand’s] quality label ‘Made in Germany’ as well as its connection to a nearly 250-year-old, still family-owned and managed German company that has made us so successful in Asia,” he said.

After all, Lorenzen claimed that currently more than 50% of the company’s global sales of its Tradition brand are in fact generated in Asia. And while JTI’s Ahern was adamant that the company didn’t separate consumers by classical demographics and declined to explicitly confirm that Asian consumers were particularly fond of long-standing, traditional, well-reputed European cigarette brands, he still acknowledged “What we know is that Sobranie Laube is highly appreciated in travel retail, especially by Asian consumers.” Even Buckingham cautiously conceded that the label “Made in Europe” undeniably had a certain ring in Asia.

“European luxury brands are often still manufactured in Germany, Switzerland, or other countries which are synonymous for quality, reliability, and high standards, and one of our strongest markets for Davidoff is Taiwan,” she elaborated. “The smoking experience and tobacco quality are very important attributes to Taiwanese consumers.”

While opinions differ, market stats fluctuate and consumers are spoiled for choice, there can be little doubt that Europe has produced some of the most iconic and celebrated labels in the luxury cigarette segment; the cream of the crop, so to speak. The continent today remains the home of about a dozen classy high-end cigarette brands, oozing sophisticated noblesse and refined aristocracy. And that in itself is a remarkable – or perhaps “royal” – achievement.

Japan Tobacco International’s Sobranie

Sobranie was founded in 1879 in London by Russian immigrant Albert Weinberg, effectively making it one of the oldest cigarette brands in the world still around today. “Weinberg registered the ‘House of Sobranie’ in London’s fashionable St

James’s area,” recounted JTI’s Andrew Ahern. Sobranie, he explained, is a Slavic term describing an official meeting place. The brand name, he said, was a reference to the gatherings of tobacco craftsmen and merchants of the day, but also to Weinberg’s clientele, “all of whom were members of high society.” “Weinberg’s vision for the House of Sobranie was to be a luxury tobacco brand in the then still young and just emerging tobacco market.” That vision has carried over beautifully into the present, with Sobranie still being regarded as one of the classiest cigarette brands around. Acquired by Japan Tobacco International in 2007, “Sobranie is one of the fastest-growing brands in JTI’s portfolio, having enjoyed unstoppable growth since 2012 in all markets where it is present,” according to Ahern. As of August 2019, Sobranie has been available in 15 markets and 23 travel retail locations.

Von Eicken’s Tradition

Among the three luxury brands showcased in this article, von Eicken’s Tradition is the youngest, having only been launched in 2000. This very fact goes to prove that new high-end brands still can find market opportunities. So much so that thus far Tradition has become available in 20 markets worldwide. The brand range currently comprises “Gold”, “Platinum”, “Menthol”, and “Menthol Crush” varieties, all of which use a Virginia blend and only differ in their respective nicotine levels. “Von Eicken Tradition was specifically created for the discerning smoker who refuses to compromise on taste,” explained the company’s Peer Lorenzen.

“Made from premium tobacco, Tradition is the result of von Eicken’s history, experience, and knowledge accumulated over eight generations,” he said, hinting at the company’s upcoming  250-year anniversary next year. He added that as an international luxury cigarette brand made in Germany, Tradition enjoyed a leading position in the world for its quality, innovation, and design. “Tradition ‘Gold’ with its spectacular golden pack and big recognition value is a major brand worldwide.”

Imperial Tobacco’s Davidoff

The heritage of Davidoff reaches back to the early 20th century in Switzerland, where Zino Davidoff realized his vision to establish “the perfect cigar”. The first Davidoff branded cigarettes were subsequently launched in the 1980s and Imperial Tobacco acquired the rights to sell Davidoff cigarettes in 2006. As of September 2019, Davidoff cigarettes have been available in more than 100 countries, coming in three distinct product lines: Premium Line, Slim Line, and Queen Size.

“But the Davidoff portfolio varies across the world, which is mainly due to local consumer preferences and legislative restrictions. Premium Line and Slim Line are nevertheless the core lines of Davidoff,” clarified Zuzana Buckingham. Without elaborating she added that “recently new formats relevant to wider smoker audiences have been launched in different countries.”