Tag: cigars

  • Cigar Group to Reach Out at Party Gatherings

    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.

  • Chalkey to Boost PCA Government Affairs

    Chalkey to Boost PCA Government Affairs

    Credit: Thapana Studio

    The Premium Cigar Association (PCA) has hired Richard Chalkey as its new director of Coalitions and Policy. Chalkey brings over a decade of professional experience from work in government and the private sector, according to an emailed press release.

    “The Premium Cigar Association has worked with Richard since his time in the West Wing of the White House through Congress and we look forward to having him join our team,” stated PCA Deputy Executive Director Joshua Habursky. “It is rare to find someone in Washington who has worked in the House, Senate, and White House –especially someone who worked four years in a White House and in the West Wing. We are glad to have the perspective and network that Richard will bring.”

    Previously, Chalkey served as the associate director of the National Economic Council and as the associate director of the Office of Legislative Affairs in the Trump White House. During his four years of service at the White House, Chalkey managed policy rollouts for the directors of his departments and in coordination with White House Senior Staff and Cabinet Agencies.

    Most recently, Chalkey served as deputy chief of staff for Rep. Nancy Mace of South Carolina in the 117th and 118th Congress. Prior to the White House, Chalkey also served in the office of former U.S. Senator Mark Kirk and former Congressman Rodney Davis, both of Illinois.

    Chalkey holds a bachelor of science in Management – International Business and a bachelor of science in Marketing from the University of Illinois at Urbana-Champaign. He is a U.S. State Department Gilman Scholar for studying abroad at the University of Hong Kong and currently is a May 2024 expected executive MBA candidate for the Darden School of Business at the University of Virginia.

  • Boost in Noncigarette Tobacco Use: U.K.

    Boost in Noncigarette Tobacco Use: U.K.

    Image: dusanpetkovic1

    The number of people in the U.K. who smoke pipes, shisha and cigars has increased fivefold over the past 10 years, according to The Guardian.

    Based on a study published in Nicotine and Tobacco Research, in 2023, there were 772,800 exclusive noncigarette tobacco users compared to 151,200 in 2013. The study is based on research by University College London academics who surveyed 1,700 adults a month between 2013 and 2023 on their smoking habits.

    Young adults showed the largest increase in use of noncigarette tobacco. Of the surveyed 18-year-olds, 3 percent used noncigarette tobacco while 1.1 percent of 65-year-olds used these products. Men and current vapers showed a higher prevalence of noncigarette tobacco use as well.

    Experts argue that use of noncigarette tobacco can be more harmful than smoking traditional cigarettes. The British Heart Foundation has stated that smoking a shisha pipe for 20 minutes to 80 minutes amounts to the same amount of smoke inhaled from more than 100 cigarettes. The organization also stated that tobacco-free shisha still produces dangerous toxins in the smoke.

    The increase in noncigarette tobacco use could be attributed to a belief that these forms of smoking are less harmful than traditional cigarettes or to financial reasons, according to the study.

    “Tobacco kills one person every five minutes in the U.K.,” said Ian Walker, executive director of policy at Cancer Research U.K. “Research like this shows that the issue of smoking isn’t just about cigarettes—all tobacco products are harmful and cause cancer, no matter what form they come in.

    “That’s why it’s crucial that the government’s age-of-sale legislation applies to all tobacco products. If implemented, this policy will be a vital step toward creating a smoke-free U.K., preventing future generations from ever becoming addicted to tobacco.”

    “This 10-year-long study captures the shift in trends of noncigarette tobacco use and paints a concerning picture,” said Sarah Jackson, lead author of the study. “Although rates of cigarette smoking have fallen, our data show there has been a sharp rise in use of other smoked tobacco products, particularly among young people.

    “It’s vital that smoking cessation services are adequately funded and available across the U.K. so that the around 772,800 people who use noncigarette tobacco products, and the millions who use cigarettes, are given the support they need to quit.”

  • Registration Opens for 2024 Habano Festival

    Registration Opens for 2024 Habano Festival

    Registration for the 2024 Habano Festival is now available through an online accreditation system at https://registrations.habanos.com. Those hopeful to attend can review all activities and make a payment online with a credit card.

    Typically, registration for the event happens in November of the previous year. This year, registration was delayed by approximately two months. No reason was given by Habanos for the delay.

    The registration period for the Habano Festival will be open from January 30th to February 12th or until the slots available are exhausted.

    “Once payment has been made, you will receive an email with a QR code which you may present it per activity, either on your phone or printed, along with the physical invitation given to you at Palco Hotel, Convention Center, Havana,” the release states. “Thank you for your interest; we look forward to seeing you at the most important Premium tobacco event in the world: the Habano Festival.”

    The events and costs are:

    • Welcome Evening — €530 ($574) — Event commemorating the 30th anniversary of Habanos S.A. to be held at Club Havana;
    • Visit to Plantations in the Pinar del Río region — €170 ($184)
    • International Seminar — €425 ($460);
    • Mid-week Evening — €745 ($807)— Event celebrating 50th anniversary of Quai D’Orsay brand to be held at the El Laguito Protocol Room;
    • Visit to Habanos Factories — €200 ($216);
    • Gala Evening — €1,325 ($1,436) — Dedicated to the 55th anniversary of the Trinidad brand to be held at Pabexpo.

    The exclusive cigar event is to be held in Havana from Feb. 26 – to March 1, 2024.

    Payments in Cuba can also be placed through Havanatur, according to Habanos. For further information, email Havanatur at eventos@havanatur.cu

    Habanos, S.A., the state-run distributor of global Cuban cigars, said in a release that its annual event is “in an international and exclusive atmosphere,” and it will include a wide-ranging program of activities combining the knowledge of the Habano and the exciting culture, including the ending final evening gala dinner and famed humidor auction.

    “In this XXIV Edition, the best specialists, distributors and aficionados will enjoy all the activities that, along with the best gastronomy and music, have made this famous event: visits to renowned Habanos factories, plantations, seminars with interesting lectures, exclusives pairings, contests and three very special nights where they will get a sneak preview of the latest Habanos, S.A. novelties,” the release states.

    Habanos, S.A. is already “working to make this event memorable for the expectations of aficionados with the passion and magic they have come to expect from each new edition.”

  • Oliva Launches ‘Year of the Dragon’ Cigar

    Oliva Launches ‘Year of the Dragon’ Cigar

    Nicaragua-based Oliva Cigars has partnered with China Duty Free Group (CDFG) to launch a limited-edition “Year of the Dragon” premium cigar line.

    The MSRP has been set at $35 per cigar or $350 per box of 10 cigars. Production is limited to 1,500 boxes, and they are expected to go on sale in mid-February.

    Each box features a dragon design, paying homage to the creature and the spirit of the Chinese New Year.

    Credit: Oliva

    The Year of the Dragon is a Churchhill produced in Oliva’s factory in Esteli, Nicaragua, and features an Ecuadorian Habano sun-grown wrapper over a Nicaraguan binder and Nicaraguan fillers.

    “We are thrilled to introduce the Oliva Year of the Dragon Churchill Cigar in celebration of the Chinese New Year in cooperation with CDFG,” Oliva Cigars Export Manager Thomas Gryson said in a press release. “This limited-edition collection is a true embodiment of our dedication to quality and craftsmanship.

    “We have carefully curated this offering to provide aficionados with a unique and culturally significant cigar experience, making it a must-have for collectors and enthusiasts alike.”

  • Major Tax Increase Introduced in Congress

    Major Tax Increase Introduced in Congress

    Credit: Roman R

    Last week, lawmakers in the U.S. introduced the CARE For Moms Act in Congress. That bill would increase healthcare for expecting and new mothers, while also exponentially increasing the taxes for vaping, roll-your-own, cigars and other tobacco products.

    The tobacco tax language in the CARE Act was copied and pasted out of the Tobacco Tax Equity Act, a bill that has been introduced as a rider in bills introduced in previous sessions of Congress but it failed to gain any traction, according to halfwheel.

    That could change after Sen. Ron Wyden and Sen. Dick Durbin have now introduced the Tobacco Tax Equity Act of 2023 in the Senate as a standalone bill, while Rep. Raja Krishnamoorthi introduced the bill in the House of Representatives.

    The tobacco tax-related language includes:

    • New taxes for e-cigarettes;
    • Doubling the tax on roll-your-own tobacco;
    • A more than 16x increase on pipe tobacco;
    • Doubling the tax on small cigars;
    • A massive tax hike for premium cigars;

    For premium cigars, the language removes the existing federal excise tax of 52.75 percent, capped at 40.26 cents per cigar, and replaces it with a weight-based tax of $49.56 per pound.

    Because it’s a weight-based tax, the difference between the existing tax and the new taxes would vary depending on how heavy the cigar is. For cigars robusto or larger, it would likely more than triple the current federal tax rate.

  • Habanos Appoints First Woman as Co-President

    Habanos Appoints First Woman as Co-President

    Maritza Carrillo González (Credit: Habanos S.A.)

    Habanos S.A., the manufacturing and distribution arm of the Cuban cigar industry, has announced that Maritza Carrillo González has been appointed as its new co-president after being approved by Habanos shareholders.

    Carrillo’s promotion is “endorsed by the experience, knowledge and work she has been performing for several years in different positions within Habanos, S.A. and other entities related to Habanos,” according to a release.

    She is the first woman to serve as co-president of the company. She is rumored to be replacing Inocente Núñez Blanco as one of the company’s two co-presidents alongside fellow co-president Luis Sánchez-Harguindey Pardo de Vera.

    Carrillo holds a degree in International Economic Relations and has been linked to the world of Habanos since serving as a founding team member of the company.

    She has held various responsibilities in the commercial, marketing and business development divisions of Habanos.

    From 2006 to 2011, she served as marketing director and head of Havanesa stores at Empor, S.A. (the exclusive Habanos distributor in Portugal).

    In 2011, she was promoted to serve as business development director of the company.

    She later assumed the position of president of Comercial Iberoamericana S.A. (COIBA) based in Spain.

    In 2021, Carillo became general manager of Tabagest S.A., where served until her recent appointment as co-president of Habanos.

    The move comes as the company is preparing for the 23rd edition of the Habanos Festival taking place from Monday, Feb. 27th, to Friday, March 3rd. It is the premier event for the Cuban cigar industry.

    Habanos reported a turnover of $568 million in 2021, up 15 percent growth over the previous year.

  • Exquisitely crafted

    Exquisitely crafted

    Science-based regulations may be appropriate for most tobacco products; fine cigars deserve to be regulated as an art.

    By George Gay

    Longer ago than I care to remember, I attended what, if memory serves me correctly, was called a cigar dinner. Now I know, because I have written a story about such matters, that some chefs like to occasionally include tobacco in their more exotic dishes. So I had better explain that the dinner I attended—at one of London’s best hotels—comprised a splendid, tobacco-free meal that was punctuated with fine cigar smoking.

    I cannot remember what the dinner marked or celebrated, but I clearly remember two things from that evening. The first was that the diners on the far side of the room from where I was sitting disappeared. One moment they were there; the next they were not. It was like watching Claude Rains in The Invisible Man as he took off his bandages and clothes, though without the preceding violence, I’m glad to say. In fact, what had happened was that, unnoticed, the huge amount of cigar smoke that had been generated by the large number of guests had filled the upper reaches of the room in which the dinner was held and then gradually descended to about the height of the head of a seated person. The effect didn’t last for long because, I assume, the hotel management was informed of the situation and somebody was dispatched to press the button labeled “extraction system.” Certainly, there was a noise of machinery starting up, and the smoke cloud disappeared within a matter of seconds.

    The second thing I remember about the dinner was that one of the men seated at my table, who anyway owned many fine cigars, told me that he had been left a huge number of such cigars by somebody who had recently died. The interesting thing about his story was that whereas the executors had told him of the existence of the cigars, they couldn’t tell him how many there were nor where they were to be found. So the man was enjoying himself doing the rounds of those London establishments that let out humidor space in his quest to track down the cigars. He had found a great many by the time that he spoke with me, but he was confident there were more to find. For all I know, he’s still searching. There are worse ways to spend your time, I imagine.

    A special species

    I present these two vignettes in the hope of convincing you, the reader—while, at the same time, reminding myself—that there is something special about fine cigars. You see, I have noticed that, in the U.S., there has been a lot of special pleading about how fine cigars should be protected from the worst ravages of the Food and Drug Administration’s (FDA) deeming regulations while—though this is not said expressly—cigars that are not in the “fine” category should be left to their own devices, and initially I was less than comfortable with this argument. I mean, fairness suggests that the products enjoyed by the financially struggling should be protected from the regulations rather than those enjoyed by the better off, who are well-placed to find something else to occupy their time. (Of course, I don’t mean to imply that cigars not described as “fine” are defenseless. Far from it. Many of them are made by major manufacturers that can afford big lobbying spends.)

    But it isn’t that simple. The division between who can afford fine cigars and who cannot is not as marked in the U.S. as it is in Europe. I don’t want to get myself into an argument that I’m not going to win about what constitutes a fine cigar*, but, in the U.S. at least, this is a product that is enjoyed not only by those financially well-off. As I understand it, plenty of people who are modestly well-off smoke fine cigars—policemen and firefighters, for instance.

    Something else that marks fine cigars out as being special concerns the fact that a lot of those that are hand-rolled in the U.S. are the products of small and medium-sized businesses, some of which are family concerns. And, to my mind, it is important for two reasons that such companies are encouraged to continue to operate. One is that they form part of an industrial complex whose strength lies in its diversity, in its multinational, large, medium and small businesses. That their well-being should be threatened by the sorts of rules put forward by the FDA as part of its deeming regulations is, to my mind, so counterproductive as to be absurd.

    The second point has to do with the consumer rather than the business. Look at the consolidation that has taken place within the cigarette industry and the way in which that consolidation has helped the shareholder rather than the consumer. Then look at how relatively diversified the local fine cigar industry is and at how the businesses within it serve their customers with a huge range of products.

    And, as is mentioned above, these are products that can be savored by people from just about any walk of life, though it should be noted that, for whatever reason, this appeal does not extend to those ruled to be underage when it comes to buying tobacco products. Perhaps price is one factor in persuading young people not to indulge in fine cigars, but I suspect, too, that these products involve too much of an investment in time. One of the things that appeals to many fine cigar smokers—sitting around with like-minded people discussing cigar colors, flavors, shapes, densities, bands, boxes, etc.—is probably a turn-off for young people, who need to be doing more important things—things of which, at my age, I am vaguely aware but, thankfully, couldn’t describe.

    Fine cigar boxes, meanwhile, constitute an issue in themselves. Given that fine cigars are smoked only by people who are committed to such products, who would want to sully such beautiful boxes with ugly health warnings? What possible purpose is served by besmirching these creations in this way? Are we saying that the people who smoke fine cigars aren’t aware that their habit carries some risk? And, in any case, don’t we create enough ugly things with our interminable, gratuitous wars?

    Overall, much of the threat faced by fine cigars is caused, I think, by a misunderstanding to do with the word “science.” Some time ago, I noticed that the recently appointed head of the FDA, Scott Gottlieb, on being asked what his intention was in respect of fine cigars, said, “Whatever we do in this regard is going to need to be science-based, of course.” Surely, this is the very opposite of what is needed. Fine cigars constitute an art form, and, as such, though they might be informed by science, cannot rightly be governed by science. The production of the leaf tobacco that is used in making fine cigars can usefully be improved by the application of scientific methods, just as the production of oil paints can be improved by scientists. But then to extend science’s remit to how the oil paint is applied to the canvas or how the viewer perceives the final painting would be nonsense, just as it would be to extend such a remit to how fine cigar tobacco is rolled and how what it delivers is savored by the smoker. And this applies especially to the bureaucracy-dominated science in which the FDA specializes.

    *I would say, however, that, at the very least, a “fine cigar” would have to be made by rolling by hand a bunch of good-quality tobacco leaves within a leaf binder and wrapper.

     

  • Supporting the small guy

    cigars photoThe Cause of Action Institute (CoA Institute) on Tuesday filed an amicus curiae brief in support of a challenge to a new regulation that threatens small premium-cigar businesses in the US.

    The CoA Institute filed its brief in support of the plaintiffs: the Cigar Association of America, the International Premium Cigar and Pipe Retailers Association, and Cigar Rights of America.

    These groups have brought a lawsuit against the Food and Drug Administration challenging a new regulation with what the CoA Institute described as far-ranging, negative economic impacts on consumers and small businesses engaged in the premium cigar industry.

    ‘The new regulation finalized by FDA unfairly targets America’s smaller-scale cigar manufacturers, trampling on a proud American heritage and eliminating economic opportunity for many small businesses,’ the CoA Institute said in a press note.

    “Common sense appears to be dead at the FDA,” Patrick Massari, assistant vice president at the CoA Institute was quoted as saying. “Inexplicably, the FDA ignored tens of thousands of comments from the premium cigar industry, Congress, local government, media, and the citizens of the United States, particularly those affected in ways large and small by FDA’s power grab. Under this new rule, the tradition of premium, hand-rolled cigars handed down by generations will turn into a corporate profit mill.”

    ‘In its brief, CoA Institute argues that FDA failed to conduct a legally sufficient cost-benefit analysis, as required by federal law and Executive Orders issued by President Clinton and President Obama,’ the press note said. ‘Specifically, President Clinton’s 1993 EO 12866 requires that “[e]ach agency shall tailor its regulations to impose the least burden on society, including individuals, businesses of differing sizes, and other entities (including small communities and governmental entities), consistent with obtaining the regulatory objectives, taking into account, among other things, and to the extent practicable, the costs of cumulative regulations. [emphasis added]’

    ‘The limited analysis FDA produced either omitted or glossed over several important costs:

    • First, premium cigar prices will substantially increase for all consumers as a result of the rule;
    • Second, the sheer compliance costs of FDA’s regulation will be so high that smaller, family-owned businesses will no longer be able to comply;
    • Third, the resulting government-defined marketplace will cripple consumer choice and bar future innovation.

    ‘Many companies will likely have no choice but to sell out to larger corporations, which will then dominate the market as regulation-protected monopolies.

    ‘The FDA itself admits that it failed to do any analysis on consumer choice, saying: “We lack a baseline estimate of consumer valuation of tobacco product variety, making it impossible to estimate how consumers who continue to use tobacco products would value the potential loss of variety due to product exit under this final rule”. Instead, the FDA ignored this essential element of cost-benefit analysis by pretending that such data does not exist.

    ‘In its brief, CoA Institute calls on the Court to order FDA to reopen its cost-benefit analysis and to vacate and remand the final rule.’

  • Cortès buys ECMI

    Cortès buys ECMI

    Fred Vandermarliere
    Fred Vandermarliere

    Cortès has agreed to acquire ECMI, a cigar business in Ireland.

    ECMI has shown considerable volume growth and will benefit from the expertise and size of J. Cortès. As part of the group, it will be better equipped to overcome the challenges, such as the new EU Tobacco Product Directive.

    “We believe that the new group will be stronger in relation to our suppliers, adherence to legislation and the markets,” says Fred Vandermarliere, CEO of J. Cortès

    Vandermarliere has taken over as managing director from Aoife O’Dowd.

    Aoife will take up a new role as key account manager for ECMI’s private labels and she will have an active role in the further sales growth of the J. Cortès group of companies.

    The ECMI management team will remain in place and will be supported by Jos Breemans who acts on behalf of J. Cortés as general manager to create a smooth transition of the ownership.