TobaccoReporter logo

Tag: CAA

  • U.S. Cigar Imports Up 4.6% in 2025

    U.S. Cigar Imports Up 4.6% in 2025

    Handmade cigar imports to the United States continue to rise, according to new data released this week by the Cigar Association of America (CAA), signaling sustained growth in the premium cigar market. Imports for the first three quarters of 2025 totaled 318.6 million cigars, a 4.6% increase compared with the same period in 2024, according to Cigar Aficionado.

    Nicaragua remained the dominant supplier, accounting for 190.4 million cigars, up 2.1% year over year. The Dominican Republic followed with 69.9 million cigars, a 3.8% increase, while Honduras recorded the fastest growth among the top producers, with shipments jumping 14.8% to 55.5 million cigars. Together, the three countries accounted for more than 99% of all handmade cigar imports.

    The largest monthly surge occurred in March, when imports rose 29% compared with March 2024, following the announcement of the Trump administration’s “Liberation Day” tariffs affecting cigar-producing countries. In 2024, U.S. imports reached 430 million handmade cigars, up 0.9% from 2023. If current trends hold, 2025 is on pace to mark the fifth consecutive year with more than 400 million handmade cigars imported into the U.S.

  • CAA Elects Terry Gallagher as New Chairman

    CAA Elects Terry Gallagher as New Chairman

    The Cigar Association of America (CAA) announced that Terry Gallagher, Jr., president of Smoker Friendly tobacco outlets, has been elected chairman of the association, succeeding Javier Estades. Gallagher, Jr. brings decades of experience in the premium cigar and tobacco sectors and assumes leadership as the association continues its advocacy and industry-support efforts.

    CAA president Scott Pearce praised Estades for his nine years of service, during which the association strengthened federal and state advocacy, expanded policymaker engagement, and became a leading voice on tobacco issues. Estades will remain on the Board.

    The Board also elected new officers: Eric Newman (Vice Chair), Carrie Freed (Treasurer), and Henry Roemer (Secretary). Gallagher, Jr. emphasized collaboration with the leadership team to advance cigar-specific regulation, protect adult consumers, and preserve the heritage of premium cigars.

  • CAA Seeks New Definition of “Premium Cigar”

    CAA Seeks New Definition of “Premium Cigar”

    The Cigar Association of America (CAA) has submitted a revised definition of “premium cigar” in its ongoing legal battle with the U.S. Food and Drug Administration. Filed June 6 as part of Cigar Association of America et al. v. United States Food and Drug Administration et al., the brief marks a shift from the working definition previously agreed upon by Judge Amit P. Mehta, the Premium Cigar Association (PCA), and Cigar Rights of America (CRA).

    Mehta, CRA, and PCA have been satisfied with an eight-point working definition, however earlier this year the CAA said it was opposed. Last week in its brief, the CAA said it “does not agree that the definition suggested by the agency and adopted in the Court’s previous rulings is the proper definition of a premium cigar, or that it was properly adopted. That organization’s proposed definition is reflected in the comments it submitted in response to the Proposed Rule.”

    The CAA proposed modifying the definition to a five-point standard: that is wrapped in whole tobacco leaf; contains a 100% leaf tobacco binder; made by manually combining the wrapper, filler, and binder; has no filter, tip, or non-tobacco mouthpiece, and is capped by hand; and weighs more than six pounds per 1,000 units.

    CAA’s proposed five-point standard omits language prohibiting characterizing flavors and allows for machine-assisted production. It also lowers technical requirements for filler content. The FDA, CRA, and PCA must respond to the proposed changes by July 7.

  • Cigar Associations Team to Commission Study on Tax Cap Policies

    Cigar Associations Team to Commission Study on Tax Cap Policies

    Today (June 10), the Premium Cigar Association (PCA) and the Cigar Association of America (CAA) announced they are collaborating on a national study of cigar tax cap policies enacted and planned throughout the nation. The PCA and CAA have commissioned Goss & Associates, led by Dr. Ernie Goss, who serves as chair in regional economics at Creighton University, to undertake the study. Goss has published more than 100 studies on economic forecasting and on statistical analysis of business and economic trends.

    “This is a first-of-its-kind study that should produce a historic perspective on cigar tax policy, coupled with an analysis that charts a path forward in the states,” PCA executive director Joshua Habursky said. “Having a study produced by an economist of Dr. Goss’s acclaim is a testament to how serious PCA and CAA are on this pressing issue as we initiate this project.” 

    The study will evaluate the effectiveness of cigar tax caps as a matter of state policy and the direct and indirect economic impact of premium cigars for each state, including local, state, and federal taxes.

    “Since 1977, the CAA economic and statistics program has provided actionable insights to support industry advocacy,” CAA president Scott Pearce said. “Currently, we find ourselves having to defend existing tax caps, as well as working to advance new cap bills, in addition to addressing reform of statutes in some states.  And in this regard, research and substantiated data are the number one requests of state legislatures. CAA is excited to be partnering with PCA to further progress our advocacy with this new study.” 

    The study results are expected to be released in 2025.

  • CAA Reports U.S. Cigar Imports Down 8.7%

    CAA Reports U.S. Cigar Imports Down 8.7%

    The Cigar Association of America (CAA) reported the U.S. imported 48.4 million premium cigars in the first two months of 2025, an 8.7% decrease from the previous year. The decline was not due to tariffs, which were announced in April, but are believed to be part of the ever-adjusting post-pandemic market.

    The three major cigar exporters all saw declines, with the Dominican Republic down 4.1%, Nicaragua (which accounts for more than half of the market) down 9.3%, and Honduras down 19.3%. Those three producers account for 99% of handmade, premium cigar shipments to the United States.

    “January’s imports are typically anemic compared to the other 11 months of the year, oftentimes less than half of some of the peak import numbers that occur in the second half of the calendar,” Charlie Minato wrote for Halfwheel. “While imports have cooled off from their peak in 2020-2022, the U.S. imported 430 million premium cigars in 2024, up more than 90 million units compared to pre-pandemic levels.”

    According to the CAA, the market increased from 338 million handmade cigars in 2019 to 465 million in 2022.

  • U.S. Premium Cigar Imports Top 430M

    U.S. Premium Cigar Imports Top 430M

    The Cigar Association of America (CAA) released its annual report today, indicating that U.S. imports of handmade, premium cigars rose 0.9% last year, going from 426.3 million in 2023 to 430 million in 2024. It appears that the pandemic created a second cigar boom, as imports have exceeded 400 million units for four years in a row, a 27% increase from 2019’s 338 million cigars. The market has cooled slightly, however, from its record years of 2021 and 2022, where imports were 453.9 million and 464.5 million, respectively.

    Nicaragua accounts for 58.8% of U.S. cigars, shipping 253.1 million cigars in 2024, a 2.7% increase over the previous year. The Dominican Republic shipped 106 million cigars, a 1.8% decrease from 2023, followed by Honduras’ 67.4 million cigars, a 3.3% increase. Those three countries account for 99% of the U.S. cigar supply.

    Costa Rica saw a 44.9% jump in the number of cigars it sends to the U.S., and at 2.5 million units is the only other producer to top the 1 million mark.

    The CAA generates this data from the U.S. Census Bureau, the U.S. Customs Services, and from cigar companies themselves. The numbers include estimates that remove large, machine-made cigars from the premium category.

  • Miami Cigar Joins Cigar Association of America

    Miami Cigar Joins Cigar Association of America

    Cigar Association of America logo
    Photo courtesy of the CAA

    Miami Cigar and Co. has joined the Cigar Association of America (CAA), making it the third new member in the past six months.

    “Miami Cigar and Company is an exceptional family-owned, mid-sized cigar company, and we are proud to represent them and its portfolio of fine brands,” said David Ozgo, CAA president. “We certainly look forward to working with them to advance public policy issues affecting cigars.”

    Miami Cigar and Co. was founded in 1989 and now distributes brands such as Tatiana, Nestor Miranda and Don Lino.

    “Miami Cigar and Company is thrilled to join the CAA,” said Jason Wood, vice president of sales and marketing for Miami Cigar and Company. “The association provides a valuable service to the cigar industry with its unparalleled network of state and federal government relations experts. The CAA does exceptional work in protecting the rights of cigar enthusiasts nationwide and all segments of the cigar industry, and we want to be part of that.”

    The CAA is a national trade association representing manufacturers, distributors, importers, suppliers and all channels of retailers in the cigar industry.

  • Trade Group: Cigar Flavor Ban Harmful

    Trade Group: Cigar Flavor Ban Harmful

    Image: pureradiancecmp

    Banning flavored cigars would do more harm than good, according to David Ozgo, president of the Cigar Association of America, reports The Center Square.

    “The economic impact is one thing, but just as important is the fact that what you’re doing is taking away an adult’s right to choose,” Ozgo said. “When President [Barack] Obama passed legislation in 2009 regulating tobacco, he stressed the idea was not to take away an adult’s right to use tobacco if that’s what they choose.”

    In 2021, flavored cigars made up 47 percent of the market, so banning them would have a huge economic impact, according to Ozgo. He projects losses of about $4 billion in retail sales, 16,000 jobs, $840 million in wages and an estimated $750 million in federal, state and local tax revenue.

    “The proposed rules would help prevent children from becoming the next generation of smokers and help adult smokers quit,” Health and Human Services Secretary Xavier Becerra said in a statement on the U.S. Food and Drug Administration’s website. “Additionally, the proposed rules represent an important step to advance health equity by significantly reducing tobacco-related health disparities.”

    Ozgo countered that it’s already illegal for a person under 21 to purchase tobacco. Government data shows less than 1 percent of youth use flavored cigars, he noted.

    “This is a solution in search of a problem,” Ozgo said. “When you look at indicators of nicotine addiction, they’re not the same as, say, cigarettes. Really, people smoke cigars for different reasons. With cigars, it’s just something you do to relax and enjoy. We always say cigars are more of a hobby than a habit; you don’t even smoke one every day.”