Cigar Association of America - Tobacco Reporter

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.

April 9, 2025

Cigar Group to Reach Out at Party Gatherings

The Premium Cigar Association (PCA), in collaboration with the Cigar Association of America (CAA) and Drew Estate Cigars, will be holding outreach events in Milwaukee, Wisconsin, on July 16, 2024, from 6 p.m. to 9 p.m. during the Republican National Convention, and in Chicago, Illinois, on August 20, 2024, also from 6 p.m. to 9 p.m. during the Democratic National Convention.

“This will be an exciting time for the Milwaukee area, and our small businesses are ready to greet convention attendees during this special event and throughout convention week. We look forward to partnering with the PCA, CAA, and Drew Estate to unite people,” said Paul Groh, owner of Metro Cigars and PCA Executive Board member.

The upcoming events will take place at PCA member locations: Metro Cigars Germantown in Wisconsin and Up Down Cigar in Chicago. These events will gather elected officials, candidates, and political figures from all over the country. Each event aims to bring together more than 100 people for social discussions on important issues, all while enjoying premium cigars.

“It is important that the premium cigar industry has a presence at these key political events, and it is exciting to host an event for both parties at PCA member locations to showcase the essence of specialty tobacco retailing,” says Joshua Habursky, interim executive director/head of Government Affairs for the PCA.

May 20, 2024

Pearce to Lead Cigar Association of America

Scott Pearce will leave his position as executive director of the Premium Cigar Association (PCA) and join the Cigar Association of America (CAA) as that organization’s new president.

“Scott is uniquely positioned to grow and bring innovative lobbying and advocacy to CAA. His depth of experience working in industry and trade groups and his most recent experience with PCA provides CAA a leader who is prepared to take on the difficult issues our association faces.” said Chris Howard, CAA board member and chair of CAA’s committee that sought out its new president.

Pearce has over 20 years of experience working in associations with a strong track record of driving growth and implementing innovative strategies.

His last day with the PCA, which Pearce led since 2018, will be May 24, 2024. In the interim, Deputy Executive Director Joshua Habursky will fill the vacancy and oversee operations in coordination with PCA’s executive committee and board of directors.

“We are grateful for Scott’s time at PCA that saw transformative positive changes for the association from advocacy to trade show and especially grateful that he was able to work with us to hire an incredible team that will have a lasting legacy even after he leaves the organization,” said PCA Board President Scott Regina in a statement.

“With change comes opportunity,” said Habursky. “Scott was part of a team of staff and a board of directors that resurrected an organization that faced tough times during the pandemic. The association is in a strong position and will continue to be the advocacy leader for premium cigars, host its world-class trade show, and grow all facets of its membership with our existing team.”

April 26, 2024

Ozgo Steps Down as Cigar Group President

David Ozgo is moving on from his position as president of the Cigar Association of America (CAA).

In a statement, the CAA acknowledged Ozgo’s committed service to the association.

“In his time at CAA he modernized the association’s public relations and social media capability,” the organization wrote on its website. “His op-eds and interviews have been valuable in communicating industry positions. Additionally, his hard work brought in several new members. We wish David all the luck on his next venture.”

CAA’s board of directors will be embarking on a search for new executive leadership.

February 6, 2024

FDA Appeals Premium Cigar Ruling

The U.S. Food and Drug Administration on Jan. 31 appealed an August 2023 court ruling vacating the agency’s decision to regulate premium cigars, reports Halfwheel.

The court ruling stemmed from a lawsuit filed by the Cigar Association of America, the Cigar Rights of America and the Premium Cigar Association (PCA).

In 2022, Judge Amit Mehta issued an opinion examining the rulemaking record and detailing the FDA’s failure to address evidence in the record showing that premium cigars have different usage patterns, with different resulting health effects, than other cigars. Mehta later ruled that the FDA’s mishandling of significant questions that the FDA itself asked in its proposed rule merited vacating it, as the FDA never made a nonarbitrary decision to regulate premium cigars.

In its appeal, the FDA urges the court to elevate deference to the agency’s “scientific judgment” over its duty of explanation under the Administrative Procedure Act. The FDA also argues that Mehta should have sent the flawed rule back to the agency to fix it while allowing the FDA to continue regulating premium cigar retailers and manufacturers under the arbitrary rule in the meantime.

In a statement, the PCA said it would be responding to the FDA’s arguments and defending Mehta’s opinion in a forthcoming filing with the D.C. Circuit Court. A hearing before three judges of the appellate court is likely to follow.

February 1, 2024

QI Rejoins Cigar Association of America

Quality Importers Trading Co. (QI) has rejoined the Cigar Association of America (CAA) after over a decade absence.

CAA President David Ozgo stated, “Quality Importers Trading Co. is one of the world’s leading suppliers of the highest quality cigar accessories and accoutrement to the cigar trade. It is an honor and a privilege to be able [to] represent them as we advance sound public policies for the cigar sector in Washington, D.C., and the states.”

Founded 24 years ago by Mike Giordano and based in Weston, Florida, USA, Quality Importers Trading Co. is a B2B product innovator, importer, distributor and representative to a network of manufacturers across the world, specializing in the areas of wooden ware, plastic injection molding, metal stamping and product packaging. QI’s core distribution businesses reside in cigar storage and packaging, home organization and warehouse packaging supplies.

“Quality Importers products are used by premium cigar smokers worldwide, and it is important to us to continue to actively support the premium cigar industry,” said QI President and Chief Operating Officer Alex Goldman said. “I have worked with the CAA on and off since 1998 and have always valued the professionalism and level of support the organization provides. I am proud that QI has joined CAA as a supporting member and look forward to deepening our ties with the association and its member companies.”

CAA is the leading national trade association representing manufacturers, distributors, importers, suppliers and all channels of retailers in the cigar industry and traces its roots back to the 1890s.

January 19, 2024

U.S. Premium Cigar Imports Flat in 2023

A recent report by the Cigar Association of America (CAA), an industry trade group, found that the United States imported a total of 338.87 million premium cigars between January and September 2023. The amount is only 2.61 million cigars less than the number imported during the same period in 2022. This represents a decrease of 0.8 percent.

“As of the end of the third quarter this year, premium imports have climbed back to near breakeven when comparing this year with the third quarter in 2022,” said Daniel Cotter, chief statistician for CAA, in a press release. “The data show the low point when comparing this year to last year was at the end of April. As of 4/30/23, premium imports were down almost 7 percent year-over-year (YOY).”

Nicaragua continues to be the top supplier of premium cigars to the U.S. with 181.41 million premium cigars imported in the first nine months, accounting for roughly 53.5 percent of all imports.

The Dominican Republic, which accounts for 30.7 percent of imports, has had increased exports for most of 2023, compared to 2022.

In order to surpass 2022 imports, the U.S. would need to import an average of 41 million cigars per month. CAA calculates its numbers based on both the import data provided by the U.S. Census Bureau and U.S. Customs Services, as well as information from cigar companies themselves.

December 27, 2023

Javier Estades Reelected

The Cigar Association of America (CAA) has reelected Tabacalera USA CEO Javier Estades as its chairman.

“Chairman Estades has been a leader in advancing public policy for the Cigar industry at the federal, state and local levels,” said CAA President David Ozgo in a statement. “He helped guide us to significant victories on a number of critical issues, which his peers recognized by reelecting him for another term as chairman. I personally appreciate his partnership, guidance, and support.”

“I am excited to continue as Chairman of CAA, and proud of all the big wins we have achieved for the cigar industry,” said Estades. “We still have challenges ahead, but CAA is ready to continue fighting against improper, overreaching efforts by FDA and state and local governments.”

As head of Tabacalera USA, Estades oversees a number of premium cigar entities, including Fort Lauderdale-based premium cigar company Altadis USA, the distributor and marketer of classic handmade premium cigars such as Montecristo, Romeo y Julieta and H. Upmann. He is also responsible for JR Cigar, one of the largest online retailers for premium cigars, cigar accessories, humidors, etc. and Casa de Montecristo, the premier modern cigar store featuring a large selection of premium cigars, smoking accessories, walk-in humidors, lounges and full bars across the U.S.

After joining the U.S. cigar industry in 2011, he was first elected chairman of the CAA in November 2015.

CAA is a leading national trade association for the U.S. cigar industry, representing the full range of the cigar industry. The organization supports its members by helping them successfully navigate through a challenging business environment, utilizing a broad network of advocates, who engage officials at the federal, state and local levels of government.

“Cigars are more than a great American tradition—they are a powerful contributor to the American economy, responsible for billions of dollars in annual revenue and thousands of quality jobs,” Ozgo noted.

Originally established in New York City in 1937 as Cigar Manufacturers of America, CAA’s roots date to predecessor organizations prior to 1900. The group is now based in Washington, D.C.

November 14, 2023

Budget Office Urged to Ditch Flavored Cigar Ban

The Cigar Association of America (CAA) has asked the Office of Management and Budget (OMB) to withdraw the Food and Drug Administration flavored cigar product standard (FCPS) banning flavors in cigars, which it said would cost the industry nearly $4 billion in sales—up to 47 percent of industry sales—and destroy 16,000 jobs.

“We presented evidence to OMB that FDA’s proposed flavored cigar ban dramatically fails to meet the criteria necessary for such a ban under the Tobacco Control Act, offering little or no public health benefit while having a devastating economic impact on the industry,” said CAA President David Ozgo in a statement following the group’s Nov. 6 meeting with OMB officials.

“FDA claims the product standard will reduce youth usage of cigars and that prohibiting flavored cigars will address health disparities in minority adult subpopulations. CAA showed OMB government data demonstrating that neither of these claims is true.”

In order for FDA to impose a flavored cigar ban through a FCPS, the law requires that the Agency consider: whether the potential product standard is appropriate for the public health, taking into consideration scientific evidence concerning the risks and benefits to the population as a whole; the increased or decreased likelihood that existing users of tobacco products will stop using such products; and, the increased or decreased likelihood that those who do not use tobacco products will start using such products.

“FDA’s flavored cigar product standard fails on all three accounts,” Ozgo charged. “Youth usage rates of cigars, and of flavored cigars in particular, are at all-time lows and these low rates reflect a stable and sustained trend.”

There is little or no public health benefit from the proposed flavored cigar product standard, but huge negative economic consequences will result.

David Ozgo, president, CAA

The 2022 National Youth Tobacco Survey (NYTS) showed past 30‐day youth cigar use at 1.85 percent and past 30‐day youth flavored cigar use at 0.83 percent. The recently released 2023 NYTS data showed past 30‐day youth cigar use has declined to 1.6 percent. While the flavored cigar use data has not yet been released, it is expected to follow the trend at under 1 percent of use.

Other government surveys reflect similar trends. In fact, the most recent Population Assessment of Tobacco and Health Survey (PATH) showed that past 30-day youth usage of cigars was only 0.7 percent and past 30-day youth usage of flavored cigars was just 0.14 percent.

In addition to unsupported youth usage claims, the CAA contends that the FDA failed to show that adult subpopulation health disparities are associated with flavored cigar use or that banning flavored cigars would remedy these disparities among Black, Non-Hispanic Americans. The CAA did so despite the fact that FDA is required by law to base its decisions not on subpopulation impacts but on impacts to the population as a whole.

“FDA’s claims aside, there is simply not a pattern of use of these products that raises a concern of public health that can justify eliminating an entire category of products, while depriving adult consumers of the right to choose these products” Ozgo said.

While the public health case is non-existent, FDA’s proposal would have dramatically negative economic consequences. A recent study by the Policy Navigation Group showed the flavored cigar ban would reduce retail sales by nearly $4 billion, up to 47 percent of industry sales, causing some 16,000 people to lose their jobs.

The CAA and other industry groups recently convinced a court to reject the agency’s effort to regulate “premium” cigars. More particularly, the judge in the case ruled against the FDA, citing the agency for ignoring the scientific evidence. The proposed FCPS similarly ignores scientific evidence.

“Just as it did in 2016 and 2019, we urge OMB to again reject FDA’s flavored cigar proposal,” said Ozgo. “There is little or no public health benefit from the proposed FCPS, but huge negative economic consequences will result. This is as bad as public policy gets. Ultimately, FDA’s proposal is a solution in search of a problem.”

November 8, 2023

DOJ Appeals FDA Premium Cigar Decision

The premium cigar industry recently declared victory in the fight against oversight by the U.S. Food and Drug Administration. Celebrations may have been premature.

The U.S. Department of Justice has filed an appeal on behalf of the FDA for a decision handed down from the United States District Court for the District of Columbia that fully vacated the Deeming Rule as it applied to premium cigars, according to media reports.

The lawsuit was filed by the Cigar Association of America, the Cigar Rights of America (CRA) and the Premium Cigar Association. The case focused in part on the rulemaking process, which requires the FDA to inform the public about upcoming regulations and solicit feedback on those proposed rules.

In last month’s decision in Cigar Association of America et al. v. United States Food and Drug Administration, Judge Amit P. Mehta made a sweeping, albeit expected, ruling that granted relief to the three cigar industry trade groups that sued the regulatory agency in 2016 on behalf of the premium cigar industry.

The news confirms industry fears that warning labels, premarket tobacco product application (PMTA) review of cigars and other limitations that have impeded the ability of cigarmakers are still a possibility.

Recently, the FDA acknowledged the decision and one of its impacts, telling cigar companies that it did not plan to assess user fees for “premium cigars” sold during Q4 FY23.

The Department of Justice, which represents FDA on legal matters, had 60 days to appeal the ruling. It’s unclear whether the agency will ask a court for a stay, which could reenact the deeming regulations for “premium cigars” as the appeal process works itself out.

September 30, 2023

Tag: Cigar Association of America