«it is difficult only during the first fifty years…»

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			«it is difficult only during the first fifty years…» He was born at correct time, in a correct country and in a correct family. He had got an excellent education, successfully married and in the age of forty one was at the head of a prosperous family business. It was such an advance payment that for many persons, if they were in his place, would be the final settlement. What else could be expected from life? If he were thinking in the same way no one would throw a stone into him. But he decided otherwise. He decided that all of that, which was given to him by God, the fate, by the opportunity or something else, – it was just his chance. He used this chance passing through a thorny path, in the end of which there was lying an empire with the name Davidoff created by him. This has not brought fame to him, but he actually did not strive for it. The name of this wonderful man is Ernst Schneider. He has got a fervent young laughter and wise eyes of an old man, who knows everything about life. We are talking in the very heart of his empire, in his native Basel, and behind the windows the spring is raging. The spring of the patriarch. Why after your purchasing of a shop from Zino Davidoff all details of the deal were a secret for such a long period of time? This can be explained very simply. At that time I acted as a power broker – have bought the business, but stayed in a shadow. Under conditions of the deal Zino had to remain in the business for another three years, and then to retire after transferring his knowledge and skills. Naturally, he did not want to let everybody know that his role has completely changed, and furthermore he did not want to reveal the financial conditions of this deal. It happened so that he was along with me till his end, for another twenty four long and fruitful years we worked together. From outside everything looked like it still was the business of Zino. But I was fulfilling all the job, was developing the brand and thinking through the strategy avoiding the underwater rocks. And Zino… Zino was harvesting the fruits – the success, fame, love of aficionado. But it totally suited me. All in all in it was my main target – to create an international brand as a base using what already had been created by Zino. You see, I have bought this shop not for the sake of the shop itself. Zino was my friend, and was happy that was receiving satisfaction from the business, when I myself was working a lot and hard. All in all he was my best ambassador of the brand. Each trademark must have a bright individuality. It must have soil under the feet and its own special philosophy. Without it there is no and could not be a success. I doubt that you never wanted to add your name to the name of the company. Davidoff-Schneider sounds not so bad. Never. First, on my nature I am a very modest man. Secondly, I exactly have bought the Zino’s shop for the purpose to use the name Davidoff, the name of the person, who is behind the brand. From the very beginning I decided so, it was my strategy. And then very slowly and consequently step by step all around the world I first made this name recognizable and then famous. It was not so simple as now it may look. For example, in different countries we went through 34 juridical proceedings related to protection of the trademark. Today it is already known that you have paid to Zino more than one million dollars. It is a very large amount of money, and at that time was even astronomical. Was it then difficult for you to make this decision? It is easy to make a final decision, when you are convinced in something. I exactly knew what I wanted from this deal. However, I have one rule: when everything is already formulated, I go to bed, sleep with this decision for one night and in the morning exactly know, what I have to do. The same was at that time. Generally speaking, to make successful decisions is a special gift, and as the life shows, I possess it. I have to admit that this is a very pleasant feeling. As regards the conviction… Cigars always, all my life, have been not only and not merely business for me. They have been my passion, hobby. I was simply so lucky in my life – the strongest infatuation coincided with the business, with the family business. It gave me the greatest chance and enormous possibilities to create what I have created. You see, in a cigar business, rarely wherever else, important are the personal competence and involvement. Through the whole life you display by yourself how it is correct to smoke cigars. And very important is to do it sincerely, with a pleasure. What is the current situation in the cigar market? Of course, there is a certain decline, which has touched only the American market, and thanks to our system of work has minimally affected our sales. Nevertheless, undoubtedly the end of the cigar boom in the USA substantially influenced the business of many companies. I know that the turnover of only one General Cigars has fallen on forty percent and it was forced to sell Swedish Match. Generally, there were a lot of amalgamations and mergers. What do you think about the growing anti-tobacco propaganda? Smokers of cigars are literally being slighted. It has become fashionable to fight with tobacco-smoking: all politicians and public figures began to do it. But this a double morality! With one hand they grab money in a form of a tax for the tobacco industry, and with the other one – adopt more and more new restrictions. They need our money, and this is very big money. But the most ridiculous, in my opinion, is that no difference is being made between cigars and cigarettes. A cigarette smoker does not get any enjoyment, because he smokes automatically. It is the same as to automatically make love – no any enjoyment, but the pure physiology. Switzerland is more or less tolerant to smokers. In bars and restaurants there is a division on zones for smokers and non-smokers. Swiss people are generally tolerant by their nature. We want to remain friends with everybody, and, however it sounds paradoxically, we have not entered the European Union. It is not a union, when each country does what it regards necessary and ignores the rights of other countries. For us there is no sense to enter the union, which in fact is not a union. We prefer to remain free, independent and to keep good relations with everybody. Your group is more and more involved in diversification. The last product under the trademark Davidoff is coffee. What is next? In some sense we simply were forced to start a license business. Cigars were and remain to be our principle business. But when you have a strong international brand, you must pay a lot of attention to its protection. There are entire categories of goods, when in accordance with legislation that one, who within five years after the registration did not start to produce them, looses the right to the trademark. We were forced to begin diversification, although initially I did not have such purpose. But at the same time, I did not want other people to use the fruits of my efforts directed at development of the Davidoff brand. And I must say that I am very satisfied with some of our license products. When, for example, we have registered a trademark in the segment of alcoholic drinks, we understood that we had to present in the market a drink of an extraordinary quality. Such quality we could find only among cognacs, and only in the cognac House of Hennessy. Davidoff Extra, which was created there, is a unique cognac. I reckon that it is somewhere between Hennessy X.O and Hennessy Paradis. Only a cognac of such level conforms to my conception and philosophy of development of the brand. Have you ever been to Moscow? Of course, I have already several times travelled around the whole world. I like Moscow very much, I like the Russian women very much, and during the next trip I am planning to organize something special for them. I will endeavour to pursue them to smoke cigars. At our nervous and confused time it is important to be able at least to stop and to put your thoughts and senses in order. What is better for that than a cigar? I am glad that more and more women smoke cigars. And they come to understanding that only this is correct. Say, if forty years ago a woman was smoking a cigarette in the street, this definitely was not a lady! At present, according to statistics in many European countries more women smoke cigarettes than men. It is terrible! That is why I call them to pay attention at cigars. At least it is a hundred percent natural product. In general, it is a nature of women to consume pleasures, to use things but not to collect them. That is why they like so much wines, perfumes and dresses, which very quickly becomes unfashionable… Men basically prefer material values, those that they can touch. They also like women, of course. To touch or to collect? (Laughing.) I personally – only to touch. Although at home I have a very wonderful collection of charming women – my wife and three daughters. I firmly know that from the strongest men only daughters are born. Do members of your family smoke cigars? Yes, my wife, one daughter, my daughters’ husbands, and at that two of them are doctors. So, they smoke themselves and prescribe to their patients: if you smoke cigars – smoke only Davidoff. We are a very friendly family. This, of course, helps me. In winter we always spend several days in Gschtadt, go to mountain skiing. In August without fail we go for five days to the lakes in the Central Switzerland. And, of course, the whole family gather at our house, where my wife and I live, to spend the Christmas together. This is a tradition. I always say: ‘Nobody is obliged to spend this holyday together with us, but if any one will not come – it will be very bad’. I never force people at all, I just extremely clearly express my attitude to this or another issue. Then everybody makes conclusions himself/herself. For a family business I missed one generation, you see – none of the daughters or their husbands works in the company. But I managed without them myself. But now I repair the omission with the grandchildren. Today my seven grandchildren are from sixteen to thirty. One of them, Christian, already works with me. Another one graduates from the university next year, and the granddaughter – this year. On her speciality she is a lawyer, so in the company she will be involved in protection of the Davidoff trademark. And on your education you are also a lawyer, aren’t you? Are you preparing a replacement for yourself? Exactly. Our company has always been and will be a family one. I prefer to make business in the way, I consider necessary, and it is the most important. Are you still involved in the day-to-day activity of the company? Naturally! Usually my day starts like this. I wake up at six thirty, and at six forty five my wife brings me morning tea. We have been together for already fifty five years, and for fifty five years she has been bringing me my cup of morning tea. I can responsibly declare to you: if you had not insisted on that in the very first day after the marriage, then that’s all, it is useless. Does not work. So, at seven thirty I am already in my office. It is also a very important moment – time for a morning cigar. This is always Davidoff No 2. Until I finish the cigar, nobody and nothing must trouble me. And if all the rituals are observed, the day will be lucky. And because I always observe them, I do not have unlucky days. Here is a prescription of good life from doctor Schneider. By the way, in March I was eighty two years of age, but as you see I am in a good shape. Thanks to cigars. A cigar comes to you thoughtfully, if you do everything correctly. How much do you smoke? Usually I smoke three cigars a day. In the morning it is always Davidoff No 2, because this cigar has the finest taste. Then there are no definite rules. You see, I do not have a favourite cigar or a favourite taste. I reckon that the choice always depends on the situation. And this is the philosophy of our company as the producer – to offer a correct cigar at a correct moment. For that we have created a widest range – from a fine to a saturated taste. The most saturated, full flavour taste belongs to the series ‘Millenium’. This line is for special situations, solemn occasions, events to remember. But it also for experienced smokers. You need to have an experience and a skill to know the particulars of cigars in order to evaluate it. As a matter of fact, many people smoke the ‘name’. They are not able to really evaluate the taste and the harmony of a cigar. Unfortunately, there are plenty of such people among politicians and large businessmen. They smoke for appearance, in order to show themselves, to add a respectability and significance to the image. Mr Schroder is a classic example of such profanation. The harmony – that is the most important in a cigar. A cigar is like a beautiful woman. You must feel its smell, you want to touch it in order to be convinced that it is beautiful. You behave with it as with a woman, when you court her. No a single cigar I have released to the market without my personal control. I must taste every new blend, change if necessary the taste and then make a decision. Besides, I taste cigars of other manufacturers in order to be able to make a comparison. And do you also taste Cuban cigars? Of course, I usually speak positively about the competitors or do not speak at all. But those, who loose a respect to the quality of cigars, also make a damage to the whole cigar business. And I am very sorry that this happens to the quality of Cuban cigars. I am talking both about the quality of rolling, and the technology and curing time. Production of quality cigars takes time, but time in business is money. The Cubans simply economically can not afford themselves a mass production of cigars of three-four years curing. And it is impossible to control this situation – the state monopoly. I would be glad to help Cubans, if I could. By their nature these are the kindest people, the majority of Cubans are ready to give you their last shirt, if you treat them well. But… there are people and there is a system. That is why I left Cuba. Today I manufacture my cigars in the Dominican Republic. I am surrounded by people, who know their business, professionals and like-minded persons. But on Cuba very often there is such a situation, when a director of a factory may understand nothing in cigars and in their production. Purely an organization man controlled by the state and by the system. Pure policy. Of course, Cubans lost big money, when I left. They were outraged. But at the same time on Cuba they all were sure that it was mutually – that I also would loose everything, would go under a total collapse. Everybody considered it as a duty to have their say: Schneider will definitely be broken. Well, the time has put everything in its place. Of course, it was very difficult to make up my mind… I was thinking over the situation for long, then have made a decision, slept with it for one night and in the morning began to act. Well, you already know… Now, so many years after since then, I could only thank God… People, who work with me around the whole world, are my friends. They support me and help me, and they all have supported me at that difficult moment. Please, do not forget that, when I was making the decision, I did not have a single cigar manufactured outside Cuba. We only studied the situation in all tobacco regions, looked closely at the manufacturers. Only later I have met Mr Henki (Hendrik Kelner – editor) in Santo-Domingo, and we both felt that we could work together. From the very beginning it was a partnership, because the Dominican law prohibited foreigners to have one hundred percent of a business. As soon as the law was abolished, I have purchased the whole business, and it quite suited Henki. Now he is my vice-president production, he is happy, and I am too. We became friends a long time ago. Listening to you one would think that no problems exist. Just like in paradise. Aren’t there really any problems? In a business, the same like in a family, it is difficult only for the first fifty years. But if to be serious – for me it is very important to get a pleasure from the business, to be surrounded by friends. All in all, I am convinced that only this way it is possible to achieve a real success. In other words, if you do not like a person, you do not work with him? Absolutely correct. If I have at least a vague feeling that it is not the person it is necessary to deal with, then regardless of what could be the prospects of the cooperation, I would not cooperate with him. I trust my intuition so much that very many things I do ‘through the stomach’. In my opinion the most important thing is to feel that everything is correct. It helps. Except the inherent intuition the parents also handed over to me two the most valuable qualities: the mother taught me to think positively, and from the father I inherited a sense of humor. And this, of course, helps very much in my life. How do you select people into your team? Every manager selects people into his sector. The company has grown – today we employ more than two thousand people. Regardless of that we are trying to maintain a feeling that they are all members of one large family and always may rely on help and support. If I do not like someone, I speak with senior person of this sector. My basic requirement is that people must be pleasant, ready to help each other and, which is the most important, must have emotionally positive spirits. Why the concept Davidoff Good Life has such a success? You know, everybody understands a good life in his/her own way. But everybody without exception understand it positively. And how do you treat non-smoking people? I always behave myself like a gentleman and ask a permission to smoke from those around me. I would never smoke, if I see there certain objective reasons for that. But what I can not stand is intolerance and aggression towards cigars. Very often I see women, who pictorially roll up their eyes only at the appearance of a cigar, they strike an attitude: “No, never, only not in my presence!” Then I answer the following: “In order to give pleasure to you, Of course I will not smoke, but I have to note that your perfume is extremely unpleasant to me. Terrible choice!” On this the discussion usually stops. Are you a difficult person? I am a very easy and open person. Aren’t you feeling it? I am extremely open. It helps in the business. I do not like slyness and cunning people very much; for me it is the worst streak in people. I hate, when someone makes a fortune off other people, achieves something at other people’s expense. And vice versa, if I see that a person is open and sincere, I am always glad to help him. May be I am talking some common truth, but it is already my own life prescriptions. You can trust me – you know that I have already passed those first fifty years. Both in the business and in the family life. In the end I will give you one more, the most important advice: light up your Davidoff cigars only with Davidoff matches! ??? What, you want to know why? Because from matches we make the biggest profit! by NATALIA RYZHKOVA