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The couple of Belgian entrepreneurs behind the Casa Del Tabaco cigar chain takes over C.Gars Limited, the leading British luxury boutique, and is eyeing other countries.
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Dominique Gyselinck and Frédéric Dechamps form a couple who are not afraid of anything. After opening franchise luxury cigar shops Casa Del Habano, in Belgium, in the early 2000s, then created their own chain Casa Del Tabaco in 2015, they are from redeem a competing group in the United Kingdom, C.Gars Limited. Thanks to this acquisition, financed among others via a private placement, their little luxury empire goes beyond double in size.
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While Casa Del Tabaco operated 8 stores in Belgium, for a turnover of around 10 million euros per year, their new set will weigh 27 million euros in revenue, and will count 17 boutiques (9 across the Channel). It will employ 130 people, 25 in our country and 105 in Albion. And, as the reader will have guessed, the Belgian entrepreneurial duo believes that this is from the start of their expansion outside our borders.
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“We have started negotiations with Mitchell Orchant, the founder and owner of C.Gars, at the end of 2019, before the health crisis and while Brexit was taking shape “, explains Frédéric Dechamps, CEO of Casa Del Tabaco. “Our two channels were comparable, but also complementary. We understood that we shared the same vision of the European cigar market: a very fragmented market, ripe for consolidation. “The two groups were also the main luxury cigar retailers in their respective countries, which also brought them closer together.
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A distillery bought as a bonus
The two parties have agreed on the construction of the new group: together, Dominique Gyselinck, Frédéric Dechamps and Mitchell Orchant will own some. 65%, the first two reserving the largest share, while the balance will be in the hands of individual investors, Belgians and foreigners, who have subscribed to the private placement. The papers were signed at the end of last week. Baptized Dominique London, a new holding company was set up in Waregem to oversee everything: the accounts will now be consolidated at its level. Frédéric Dechamps will become its CEO, his wife its Chief Executive Officer (COO) and Mitchell Orchant its commercial director.
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“Smoking a cigar with a glass of rum or whiskey is the perfect marriage of taste.”
Dominique Gyselinck
COO, Dominique London
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In the process, Casa Del Tabaco also acquired a small artisanal distillery in Wales. Snowdonia Distillery produces gin (under the Foragers brand) as well as vodka (Yes), rum (brand name withheld) and whiskey (Stalla Dhu). They indeed opened, last January, a new flagship store, James Street, the world cigar temple, in London. British culture wants this kind of store to include a tasting area, where it is customary to accompany the discovery of a cigar while sipping a glass of spirits. “Smoking a cigar with a glass of rum or whiskey is the perfect marriage of tastes”, comments Dominique Gyselinck. “In times of a pandemic, people have more time to devote to this type of pleasure; moreover than usual, more of them are smoking their first cigars.” The distillery will therefore supply the new “flagship store” on “rue Jacques” first.
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“We want to bring the consolidated turnover to 50 million euros within 5 years.”
Frédéric Dechamps
CEO, Dominique London
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The owners of the new group do not intend to stop there. “We want to bring the consolidated turnover to 50 million euros within 5 years, announces Frédéric Dechamps. By progressing at the same time by internal growth, by acquisitions and via franchises.” Three destinations are on the program: the Netherlands, Germany and Luxembourg.
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Brexit, an opportunity
If they are so confident in their potential, it is also because the cigar market continues to show growth. In the UK, C.Gars succeeded last year in boosting its turnover to 17 million euros, compared to barely 10.5 million in 2019. “They have invested heavily in e-commerce these three last years, explains Frédéric Dechamps. It smiled on them last year, in the context of a pandemic, with a few months of imposed closure. ” You should know that if the online sale of tobacco is prohibited in Belgium (you can at most book them online), it is authorized in England.
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Quant when the United Kingdom leaves the European Union, “it is an opportunity”, judge the bosses of Dominique London. Because cigars were historically sold very expensive across the Channel and, therefore, this market tended to import a lot from the Old Continent. A pattern undermined by Brexit, which has scarce demand in England, for the benefit of local luxury boutiques.
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