Category: Cigars

Tobacconists Donate $50,000 For Advocacy

Photo: 13 Motortion – Dreamstime.com
The Tobacconist Association of America (TAA) will donate $50,000 to the Premium Cigar Association (PCA) to aid in the industry’s growing work in local and state legislation impacting the premium cigar and pipe industries.
“The PCA would like to thank the TAA for this outstanding show of support as our industry is facing some of the most egregious tax grabs and potential smoking bans in recent history,” said PCA Executive Director Scott Pearce. “The PCA is hard at work in over two dozen states already fighting tax increases that, at the best of times, are harmful to our small business retailers. Especially during the pandemic that could potentially put our members out of business.”
PCA President John Anderson echoed Pearce’s gratitude, urging retailers everywhere to engage in the fight. “We are at our best when we are all participating in this fight, and we need all of our retailer voices to join in to ensure we will not be steamrolled by misguided public policy,” Anderson said. “TAA’s support will help ensure that we can continue to be active and put all of our resources towards defending our retailers across the country.”
“The TAA is happy that it can support the brick-and-mortar community in these most challenging times,” said Joe Arundel, TAA president. “The TAA recognizes and appreciates the outreach that PCA gives to our retail members in their respective communities across this country. We are confident that PCA can effectively help defend our stores and businesses in the coming months.”
Founded in 1933, the PCA represents and assists retailers, manufacturers and suppliers of premium tobacco products. Established in 1968, the TAA supports its members with tools and relationship building opportunities to optimize their success in the brick-and -mortar business.

January 27, 2021
Cigar Market to Reach $17.3 Billion by 2027

Photo: Tobacco Reporter archive
Amid the Covid-19 crisis and the looming economic recession, the global cigar market is projected to reach $17.3 billion by the end of 2027, expanding at a compound annual growth rate (CAGR) of 1.3 percent over, according to a new report published by Research and Markets.
An unusual period in history, the coronavirus pandemic has unleashed a series of unprecedented events affecting every industry. According to the authors of the report, the cigar market will be reset to a new normal which going forwards in a post Covid-19 era will be continuously redefined and redesigned.
The United States is forecast to readjust to a 0.7 percent CAGR. Within Europe, Germany will add more than $21.8 million to the region’s size over the next seven to eight years. In addition, more than $33.6 million worth of projected demand in the region will come from other European markets.
In Japan, the cigar segment will reach $1.1 billion by the close of the analysis period. Amid the growing push for decoupling and economic distancing, the changing relationship between China and the rest of the world will influence competition and opportunities in the cigar market.
Against this backdrop and the changing geopolitical, business and consumer sentiments, the world’s second largest economy will grow at 3.2 percent over the next couple of years and add approximately $620 million in terms of addressable market opportunity.

January 15, 2021
Scandinavian Launches Distribution Firm

Photo: STG
Scandinavian Tobacco Group (STG), the parent company of General Cigar Co. and other cigar companies, will launch a new cigar distribution company, the Forged Cigar Co., next month, reports Halfwheel. This company will serve brick-and-mortar retailers.
Scandinavian Tobacco will be splitting its catalog of cigar brands between General Cigar Co. and the new company. Forged Cigar Co. will operate independently from General Cigar Co.
Forged Cigar Co.’s portfolio will include Bolivar (U.S. distribution), Chillin’ Moose, Cofradia, Diesel, La Gloria Cubana (U.S. distribution) and Partagas (U.S. distribution). General Cigar Co.’s portfolio will include CAO, Cohiba (U.S. distribution), Hoyo de Monterrey (U.S. distribution), Macanudo, Punch (U.S. distribution) and other brands.
Forged Cigar Co. could also distribute third-party brands not owned by General Cigar Co.
Forged Cigar Co. will be led by Sean Hardiman, who has worked for General for the last decade and is now the national sales manager for Forged. Forged Cigar Co. will receive “independent marketing and customized programming” initiatives, according to Scandinavian Tobacco.
“When we announced last year our withdrawal from the annual PCA Show, we committed to investing funds back into the premium cigar category,” said Regis Broersma, senior vice president of North American Branded and Rest of World division for Scandinavian Tobacco, in a press release.
“Today, with the Forged Cigar Company, we are doing just that with a multimillion-dollar investment in the brick-and-mortar channel. In having two separate sales companies, we will have more feet on the street to better serve the needs of STG’s retail partners and the ability to be more agile in supporting our current and future brands.”
January 14, 2021
Habanos Celebrates Year of the Ox

Photo: Habanos
Habanos, through its exclusive distributors The Pacific Cigar Co. and Infifon Hong Kong, presents its new vitola Primaveras de Hoyo de Monterrey (48 ring gauge x 167 mm length). This vitola has been specially selected to commemorate the spring festival of the Chinese lunar new year—this year the “Year of the Ox.”
The Primaveras de Hoyo de Monterrey vitola will have a limited production, but will be available in all markets. This vitola is presented in a special box of 18 Habanos and is totally handmade with long filler from Vuelta Abajo in Cuba’s Pinar del Rio region.
The brand will be officially presented on Jan. 13 during an event attended by Habanos vice presidents Leopoldo Cintra González and José María López Inchaurbe.
One of Habanos’ most prestigious brands, Hoyo de Monterrey traces its origins to a plantation of the same name in San Juan y Martínez.
January 13, 2021
Nat Sherman Brands Acquired

A new company will bring back select products from the illustrious tobacco seller.
Michael Herklots and Brendon Scott have purchased various Nat Sherman International brands from Altria, according to a report by Halfwheel. Herklots and Scott are former employees of Nat Sherman International.
The brands will be sold by a new company, Ferio Tego.
Altria placed Nat Sherman International for sale in 2019 after announcing its departure from the premium cigar business. The brand was purchased by Altria in 2017.
The Covid-19 pandemic allegedly derailed an agreement to sell the entire division to an unnamed buyer, and Altria announced it would close Nat Sherman International.
Herklots and Scott did not bid on the entire Nat Sherman International portfolio because it would have been a conflict of interest; Herklots led the Nat Sherman brand after it was purchased by Altria, and he was helping to sell the brand when it was put up for sale.
“We closed the business (on) Nov. 15, and once it was closed, I couldn’t sleep thinking that there might be a chance to continue the legacy myself,” said Herklots. “I was heartbroken thinking that the brands I worked so hard to build would be left ‘on file.’ And so I asked for consideration to acquire the brands after we closed.”
“We are grateful to Altria for working with us to find a path forward for these brands,” said Scott. “I am extremely excited to work with Michael and our manufacturing partners to continue the legacy of these brands built by so many people over many decades. We are eager to bring our products back into the humidors of retailers and consumers.”
Herklots and Scott hope to have their new cigar line, Ferio Tego, on the market in spring. The two also purchased the rights to Nat Sherman pipe tobacco, but they have no current plans to place pipe tobacco on the market.
January 7, 2021
Cigar Industry Booms Amid Lockdowns

Photo: Tobacco Reporter archive
Coronavirus lockdowns worldwide are proving to be a boon for the Dominican Republic’s cigar industry, reports Bloomberg.
Already the world’s largest cigar producer, the Caribbean nation is on track to export a record $1 billion worth of tobacco products this year, up 6 percent over the $942 million it sold abroad in 2019, according to government figures.
The cigar industry has emerged as a bright spot for the region’s largest economy, which is expected to shrink 5.5 percent this year, as its critical tourism and services sectors are impacted by coronavirus-related restrictions.
The Dominican Republic is thought to be one of the birthplaces of the cigar; islanders were rolling and smoking tobacco centuries before Columbus set foot on the island. When Cuba nationalized its cigar industry during the 1959 revolution, many of the top growers moved to the neighboring island, propelling the Dominican industry.
Hendrik Kelner, president of the Association of Dominican Cigar Manufacturers isn’t surprised by the resilience of the “puros.” With cigar afficionados around the world unable to frequent bars and restaurants, they’re spending more money and time on their smoking habit,” he said.
“A cigar,” said Hendrik, “is like a loyal friend who accompanies you when times are tough and you’re lonely.”
December 30, 2020
Estades steps down as Cigar Association Chair
Javier Estades
Javier Estades has stepped down as chairman of the Cigar Association of America (CAA). Elected in 2016, Estades, who is also CEO of Tabacalera USA, is the organization’s longest-serving chairman. He will be succeeded by John Miller.
At the CAA annual meeting Friday, Estades was lauded for his leadership and commitment to the cigar industry. “There are some people in life who just get it. We call them naturals, and for naturals, it just clicks—the long days, hard work and often tiring tasks comes easily,” said Craig Williamson, president of the CAA, which is based in Washington, D.C.
“Javier’s caring personality, willingness to serve others and deep understanding of our industry all contributed to his success as chairman,” Williamson added. “Javier served as our chairman during a rough and tumble time for our industry, while simultaneously running one of the most successful premium cigar companies in the world. His affable demeanor and steady hand have been critical to our continued efforts. As his time as chairman comes to a close, we owe him a great deal of gratitude.”
In his final remarks as chairman, Estades pointed to several hard-earned victories and accomplishments over the past half-decade for the cigar industry by CAA. “During my tenure, we faced a perfect storm of unprecedented regulatory intervention by the FDA, increases in taxes at state and federal level, a divided industry, the Covid-19 pandemic and more. Despite it all, here we are—alive and kicking and very proud of what we have accomplished.”
In recent years, CAA expanded and diversified by creating leadership roles for industry partners in the mail order, distributor and importer segments, among other initiatives.
Estades also pointed to a big win in the high court in Illinois and other litigation as a result of coalition building among like-minded trade associations as well as a strong state government relations program.
CAA wins at the federal level included having health warnings thrown out, having product testing put off and eliminating the recent “substantial equivalence” deadline for premium cigars. “We still have challenges ahead, and CAA stands ready to continue fighting against improper, overreaching efforts by FDA,” Estades said.
November 9, 2020
Great Wall Factory Celebrates Cigar Culture

The Great Wall Cigar Factory held its sixth cigar festival in Shifang, China, Nov 5-8.
Nearly 600 guests gathered in Shifang to experience the cigar culture and lifestyle in the “Hometown of China Cigars.” At the same time, the event was broadcast live, connecting the main venue to branch venues in more than 100 cities across the country, and nearly 10,000 people watched it simultaneously. The event was also broadcast live online on social media, where it attracted 23,000 participants.
Guests of honor included Cuba’s ambassador to China, Carlos Miguel Pereira, and Briunny Garabito Segura, the ambassador of the Dominican Republic to China.
To commemorate the Chinese Zodiac Year of the Ox in 2021, Great Wall Cigar released two limited edition cigars, Great Wall Chinese Zodiac Limited Edition Year of the Ox and Great Wall Collector’s Edition Year of the Ox. The Chinese Zodiac Limited Edition is limited to 5,000 boxes and the Collector’s Edition is limited to 40 boxes.
During the event, Alibaba Group released a blockchain production traceability system jointly developed with Great Wall Cigar. Consumers can scan the identification mark on the cigar box to understand the detailed information of each step of the cigar production from tobacco leaf to finished product.
Located in the northwestern part of Sichuan Province, Shifang has cultivated cigar tobacco for more than 400 years. Founded in 1918, Great Wall Cigar is the largest cigar manufacturer and only pipe tobacco manufacturer in China.
November 9, 2020
Imperial Completes Sale of Cigar Business

photo: Image by Chris Frenzel from Pixabay
Imperial Brands completed the sale of its worldwide premium cigar businesses for a total consideration of €1.23 billion ($1.4 million) of which net cash proceeds of €1.1 billion will be used to reduce debt, the company announced on its website.
As announced on April 27, 2020, €88 million of consideration will be deferred for 12 months from today’s close, with a further €69 million deferred and contingent upon the transfer of the Dominican Republic factory, which is expected to complete in 2021. As subsequently announced on Sept. 28, Imperial has provided a further six-month deferral of €250 million while the buyers finalize long-term financing arrangements.
October 29, 2020
Imperial Delays Sale of Cigar Business

Photo: Tobacco Reporter archive
Imperial Brands will complete the sale of its premium cigar business slightly later than originally envisioned. Given the challenges caused by Covid-19, both transactions will now be finalized on Oct. 29, 2020, the company said in a statement.

In April, Imperial Brands announced the sale of its worldwide premium cigar businesses for €1.2 million ($1.4 million), of which net cash proceeds of €1.1 billion will be used to reduce debt.

Gemstone Investment Holding and Allied Cigar Corp. have made a nonrefundable down payment of €91.7 million to Imperial. In addition, the purchasers have agreed to pay a further nonrefundable down payment of approximately €85 million to Imperial by Oct. 7.

Imperial has also agreed to provide a six-month vendor loan at completion of up to €250 million while the purchasers finalize long-term financing arrangements. All other terms remain in line with the April 27 announcement.
September 28, 2020