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Category: Business & Finance

  • Dominoes Falling in Cigar Tariff Increases

    Dominoes Falling in Cigar Tariff Increases

    When President Donald Trump announced the United States’ new tariff policy on April 2, many tobacco enthusiasts wondered how the premium cigar industry would react. A casual poll by Halfwheel said half the cigar manufacturers were going to raise prices due to the tariffs, but for more than a month, they took a wait-and-see approach to see what their competitors did. It seems the first domino fell April 29, when Perdomo became the first cigar company to up its prices, 25 cents per cigar, because of the tariffs.

    On April 30, both CLE Cigar Co. and RoMa Craft Tobac announced price increases effective May 5 due to tariffs, according to Halfwheel.

    CLE Cigar Co. said cigars up to 52 ring gauge will increase 20 cents on the wholesale price, while cigars 54 ring gauge and larger will increase 30 cents.

    “We have to increase prices starting Monday, May 5th,” said Christian Eiroa, the company’s founder, in a letter to retailers. “We have waited as long as we could, optimistic that the tariffs would be reversed, but no such luck.”

    Skip Martin, co-founder of RoMa Craft Tobac, said the increases will typically be less than 5%, but there are some SKUs that are increasing by more than 10%.

    “As the tariffs are assessed on our import price, and not on our wholesale price, the impact varies based on how much margin we have built into our wholesale prices,” said Martin. “In most cases, we are absorbing some of the tariffs and not passing them on to the retailer, knowing that the retailer will keystone any increase we pass onto them, doubling the impact on our consumers. Given our more generous margins on LEs, these are generally affected the least. Given our very tight margins on Maestranza, this brand is affected the most severely.”

    Martin also said that if the tariffs were removed, RoMa Craft would not lower prices. This, according to Halfwheel, is likely to be the strategy that most cigar companies take.

    “Should the unlikely reversal of the tariffs occur, we will not reduce our prices as this would only devalue our retailer’s inventory. It would delay any future price increase and could possibly allow us to do more in terms of discounts and free goods to support our retailers’ ability to drive sales of our brands.”

  • Top Tobacco’s $1.1M Verdict Likely to Stand

    Top Tobacco’s $1.1M Verdict Likely to Stand

    A company that sold counterfeit Top Tobacco LP cigarette rolling papers likely won’t escape a $1.1 million jury verdict, an Eleventh Circuit panel indicated during oral argument. A jury found Star Importers and Wholesalers Inc. sold counterfeit papers, though not willfully. Although Star proved it profited just $7,000 from accidental infringement, Top Tobacco elected statutory damages, which for non-willful infringement range from $1,000 to $200,000 per mark, and the jury awarded $123,000 for each of nine infringed trademarks.

    The panel suggested that overruling the properly instructed jury’s verdict, which fits within statutory damages boundaries in trademark law, would undercut Top Tobacco’s right to a jury trial.

    Circuit Chief Judge William H. Pryor said the jury was free to consider factors including the value of the brand and deterrence. He noted that statutory damages can be punitive, so no actual losses or profits are required, nor is willfulness.

    “It seems to me hard to accept an argument that there has to be this relation to actual damages, because the entire point of statutory damages is as an alternative to actual damages,” Pryor said. “We’re trying to deter negligence in the distribution of counterfeit products that pose a risk to public safety and that harm the reputation of a brand that a seller has spent millions of dollars every year in marketing.”

    Star was one of several entities sued by Top Tobacco in the U.S. District Court for the Northern District of Georgia over counterfeit papers in 2019. Another, Gabsons Novelties, filed a failed petition to the Supreme Court arguing its principal couldn’t be personally liable as he didn’t know of the ongoing infringement that had started before his tenure.

  • Altria to Host Annual Meeting May 15

    Altria to Host Annual Meeting May 15

    Altria Group, Inc. will host a live audio webcast of its 2025 Annual Meeting of Shareholders May 15, 2025, at 9 a.m. EST. During the meeting, shareholders as of the 2025 Annual Meeting record date (March 25, 2025) will be able to vote their shares electronically and will be able to submit questions during the meeting as time permits. Although shareholders will be able to vote their shares during the meeting, they are encouraged to do so before the meeting using one of the methods described in the 2025 Proxy Statement.

    If you are not a shareholder, you may listen as a guest but cannot participate.

    Directions on how to participate in the meeting are posted at www.altria.com/proxy.

    Instead of a business update presentation at the 2025 Annual Meeting, the company encourages shareholders and guests to review resources before the meeting, available at www.altria.com/investors.

  • Capital Group Has Less Than 5% Voting Rights in Scandinavian

    Capital Group Has Less Than 5% Voting Rights in Scandinavian

    The Capital Group Companies, Inc., the world’s largest active fund manager, reported that it controls 4.91% of the total share capital in Scandinavian Tobacco Group A/S. Capital Group controls 4,226,410 shares. This reporting is in reference to Section 38 of the Danish Act on Capital Markets (kapitalmarkedsloven).

    Scandinavian Tobacco Group has its headquarters in Copenhagen, Denmark, and employs approximately 10,000 people in Europe, the U.S., Canada, the Dominican Republic, Honduras, Nicaragua, Indonesia, and Sri Lanka. 

  • Perdomo First Cigar Company to Add Tariff Increase

    Perdomo First Cigar Company to Add Tariff Increase

    Perdomo Cigars announced it will increase its prices 25 cents per cigar beginning May 1, the second time the company has raised prices 25 cents in 2025. The first was to adjust rising costs with wholesale pricing, the second is because of new U.S. tariffs.

    “As you may know, a new 10% tariff has been imposed on premium handmade cigars imported from Nicaragua, where every Perdomo cigar is proudly crafted,” said Nick Perdomo Jr., the company’s president and CEO. “This government-mandated cost affects every manufacturer in our industry, and once again, we are called to protect our customers, the end consumers, and our employees while navigating the challenging business environment we all face today.”

    Nicaragua was to have a 19% tariff, but the rate was dropped to 10%, through “a 90-day suspension.”

    “The tariff is applied to the ‘direct import price,’ which is neither the wholesale price that retailers buy the cigars for nor the price that consumers pay for cigars,” Charlie Minato wrote for Halfwheel. “Unlike state tobacco taxes, which are calculated based on the wholesale price, the tariffs are baked into the wholesale price. Because of this, the tariffs won’t simply be passed onto consumers, consumers will likely end up paying double whatever the increase is. In this case, that means the 25-cent increase is effectively 50 cents for consumers, though it will end up being more once state tobacco and sales taxes are applied.”

    Earlier this year, cigar manufacturers were taking a “wait-and-see” approach to see how competitors would handle the tariff situation, so this is likely the first of many price increases the industry will see due to tariffs.

  • IQOS System Commercially Available in Texas

    IQOS System Commercially Available in Texas

    Today, PMI U.S. announced its FDA-authorized IQOS system is now commercially available to residents in the Greater Austin, Texas, area online at www.IQOS.com/us, at select pop-up stores, and other 21+ venues. IQOS is available in more than 70 markets globally since launching in Japan 10 years ago. The launch in Texas marks the first in a series of introductions in markets across the U.S.

    “We’ve seen the impact that a diverse range of smoke-free alternatives—like IQOS and ZYN—can have in helping adults 21+ move away from cigarettes,” said Stacey Kennedy, PMI U.S. CEO. ”We are committed to raising awareness and educating both consumers and public health leaders about the progress being made in harm reduction with our smoke-free products.”

    The news that Austinite’s can now purchase IQOS onlinefollows the March announcement that a permanent IQOS store opened downtown. Since October 2024, more than 5,000 Austin residents signed up to “Be the First” to experience IQOS.

  • PMI Hosting Annual Meeting Webcast May 7

    PMI Hosting Annual Meeting Webcast May 7

    Philip Morris International Inc. announced it will host a live audio webcast of its 2025 Annual Meeting of Shareholders on Wednesday, May 7, 2025, at 9 a.m. EST. The meeting will be in a virtual format and can be accessed at www.virtualshareholdermeeting.com/PM2025. Presentation slides, script, and an archived recording of the webcast will be available at the same link. The recording will be available for one year from the date of the meeting.

    During the meeting, André Calantzopoulos, Chairman of the Board, and Jacek Olczak, Chief Executive Officer, will address shareholders and answer questions. Only shareholders of record with a valid 16-digit control number will be allowed to ask a question or make a comment.

    The audio webcast may also be accessed on mobile devices by downloading PMI’s free Investor Relations App at www.pmi.com/irapp.

  • SKE Bar is “Evolution of Classic Product”

    SKE Bar is “Evolution of Classic Product”

    SKE announced the launch of its SKE Bar, the first product unveiled under its refreshed brand identity. While its familiar aesthetic remains, the device is now equipped with a replaceable pod system and rechargeable functionality, which the company says aligns with growing eco-conscious preferences and enhances overall convenience.

    “Retaining the iconic look and beloved flavor profile of the original classic, SKE Bar now debuts in a pre-filled(pod system) and rechargeable format,” the company said in a press release. “This evolution offers a longer-lasting, more sustainable experience—without compromising the essence users have always loved.

    “Powered by the advanced SKE Chip, SKE Bar delivers a consistent 11W output, providing a stable and satisfying performance with every puff. Its 1.2Ω mesh coil ensures even heating, unlocking rich vapor and bold flavor from the very first draw to the last. The 500mAh battery supports all-day use and recharges easily—ensuring every drop of e-liquid is enjoyed to the fullest.”

    SKE Bar offers its 35 classic flavors.

  • Altria Down 5.7% in First Quarter

    Altria Down 5.7% in First Quarter

    Today (April 29), Altria Group, Inc. reported its 2025 first-quarter business results and reaffirmed its guidance for 2025 full-year adjusted diluted earnings per share (EPS).

    “Our highly profitable traditional tobacco businesses performed well in a challenging environment in the first quarter,” said Billy Gifford, Altria’s Chief Executive Officer. “The smokeable products segment delivered solid adjusted operating companies income growth behind the strength of Marlboro. In the oral tobacco products segment, on! maintained momentum in a competitive marketplace as Helix invested strategically behind the brand. And shareholders continued to benefit from strong cash returns through dividends and share repurchases, while we invested in pursuit of our Vision.”

    “We continue to expect to deliver a full-year 2025 adjusted diluted EPS growth rate of 2% to 5% versus 2024. This growth rate represents full-year adjusted diluted EPS in a range of $5.30 to $5.45 from a base of $5.19 in 2024. Our guidance excludes amortization expense associated with definite-lived intangible assets, which was previously included in our adjusted results.”

    Highlights from the report included:

    • Q1 revenue decreased 5.7% to $5.3 billion
    • NJOY U.S. retail share increased 2.4 points to 6.6%
    • Shipments of NJOY ACE were discontinued March 24, per ITC orders
    • Paid $1.7 billion in first-quarter dividends
    • Smokeable domestic shipments decreased 13.7%
    • Net revenues for oral tobacco products increased by 0.5%

    See the full report here.

  • Turning Point Announces Q1 Review

    Turning Point Announces Q1 Review

    Turning Point Brands, Inc. announced that on May 7, it will hold a conference call to review 1st quarter 2025 results at 9:30 a.m. EST. Interested analysts and professional investors can register and participate through one of its call-in numbers:

    (800) 715-9871 (U.S., toll-free)
    (646) 307-1963 (International)
    Event ID: 6640134

    Participants should call at least 10 minutes before the start and follow the audio prompts after typing in the Event ID. The call will also be broadcast live as a listen-only webcast from the investor relations section of the company’s website. The replay of the webcast will be available on the site two hours following the call.