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CAA INSIGHT
Scrappy Start Ups Aren’t Just for Silicon Valley Reflecting on Cheyenne International’s 12-year journey from North Carolina startup global exporter. >BY CRAIG WILLIAMSON
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hen people think of scrappy startups, they probably think of today’s tech titans who started their now-giant companies in garages and basements. Cheyenne International, however, proves that scrappy startup companies are not just for Silicon Valley. The North Carolina-based tobacco manufacturer has grown and evolved over the last 16 years, emerging as a thriving enterprise and industry success story worth telling. Running a small business isn’t easy. Many of the Cigar Association of America’s member-companies can attest to that. Producing quality products, delivering them to your customers, and providing reliable customer service are just a few of the challenges that any small business will face. Add to that the regulatory, legal, and cultural hurdles that come with entering the tobacco market would seem to be an against-all-odds scenario that no one could overcome. But don’t tell that to Cheyenne International.
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Formed in 2002, the company set up shop in the small town of Grover, North Carolina. In 2002, Grover’s population was about 700. In the 16 years since, the population of Grover hasn’t changed much, but Cheyenne certainly has. Cheyenne ran the gamut of entrepreneurial challenges while simultaneously facing the inherent challenges that come with entering the tobacco manufacturing industry. From the outset, the Cheyenne Ownership team made a commitment to partnering with its customers and providing quality products at a fair price. What began with people and products evolved to focus further on partnerships and industry presence, culminating in the thriving enterprise the company grew into today. It starts with people. Cheyenne has always known that having the right team at the table, so to speak, can make or break you. Cheyenne’s manufacturing location was chosen in order to provide careers to surrounding area residents. Grover, North
Carolina was an economically depressed region about an hour outside of Charlotte. Since day one, the leaders at Cheyenne International have fought tooth and nail to continue to offer jobs with above-average benefits, so that its employees could provide for their families. The focus has always been on fostering growth for employees who wanted to expand and take on new roles. After over 15 years in business, there are still many employees who have been with the company since the beginning. Products without quality are short lived. Cheyenne knew that from the start. They also knew that competing for share in the premium cigarette category was a fight they’d never win. Instead, they focused on the 4th tier segment. Quality product, fair price. That was their motto and while it wasn’t easy, Cheyenne has been able to hold their own in the cigarette segment. One of the biggest turning points for the company was the launch of the Cheyenne Filtered Cigar back in 2004. The brand reinvented a category that was otherwise stale and unexplored and turned it into a flourishing business that really put Cheyenne on the map. Now known as a leader in the OTP filtered cigar category, Cheyenne has expanded its offerings into other segments like pipe tobacco, snus and moist smokeless tobacco. Offering a diversified portfolio to wholesalers and retailers was key in cementing the fact that Cheyenne is here to stay. With good people and good products in hand, Cheyenne set out to be the best small tobacco company in America. The company has always had a very clear strategy when comes to the relationships it has with customers. These days, tobacco companies must offer more than just high-quality products at good prices. The goal, much like it is with any industry, is to provide solutions to challenges facing wholesalers and retailers. It’s not just about providing a tangible good. It’s about much more than that. As partnerships with large and small accounts emerged, Cheyenne committed to advocating on their behalf. The tobacco industry is constantly evolving and unless you’re involved, you can easily
