Comments on: Stogie Commentary: Saving a Few Bucks

By: Stogie Tip: Fill ’er Up

Stogie Tip: Fill ’er Up — Thu, 19 Mar 2009 07:55:39 +0000

[...] you go looking for cigar bargains in these tough economic times, you will undoubtedly come across some sticks labeled “short [...]

By: George E.

George E. — Tue, 10 Mar 2009 10:36:14 +0000

Patrick S. reported on those allegations in January, along with Altadis' rebutal ( http://www.stogieguys.com/2009/01/01262009-stogie... To be honest, I can't understand why they wouldn't have spent their time and money fighting the small-cigar tax increase, since it is huge: from about 4 cents a pack to about $1.00. The small cigar market has been one of the growth areas in a fairly static tobacco market, and I imagine this will likely kill that, as it will growth in the RYO segment.

By: Lou

Lou — Tue, 10 Mar 2009 10:15:03 +0000

Thanks for sharing, George.

There's one thing I thought I should mention, though. Rumor has it that companies like Altadis and General actually PUSHED for premium handmade cigars to be included in the SCHIP legislation. Because their machine made/small cigar business dwarfs their handmade cigar business, this rumor certainly has the ring of truth.

Besides that, I've found that many General products are the very definition of inconsistency. While they may taste ok, the draw can be akin to sucking the proverbial golf ball through a garden hose.

For my part, I'll continue supporting the smaller boutique-type brands, who seem to have MUCH better QC, for their diminutive size.

By: dmjones

dmjones — Mon, 09 Mar 2009 16:49:03 +0000

If the economy keeps sucking (which is the likely reaction to the current administration's "stimulus" and other spending packages), you could be very correct in that some companies that are more-or-less on the edge could end up going out of business. I'm not an insider so I wouldn't know what names those companies have, but every industry has them (Colibri comes to mind, as does General Motors, for some reason).

I would be sad to see any cigar makers go out of business because I believe that competition is good for the consumer, but if/when it happens, I would like to be in a position to score some closeout deals.

By: George E.

George E. — Mon, 09 Mar 2009 14:40:47 +0000

I guess that depends on your circumstances. I expect the new tax will add 40 to 80 cents to each single price, since the tax will be added in before cigars reach retailers. If you smoke several sticks a day, that will add up. If you're an occasional smoker, it won't be as noticeable. One other possiblity to consider — and here I stress I'm only speculating — is the likelihood of a shakeout throughout the industry as a result of higher prices, higher taxes and the lousy economy. That would probably lead to closeouts and sales later this year.

By: Franky C

Franky C — Mon, 09 Mar 2009 13:29:02 +0000

Great tips george.

Should we also be stocking up before schip hits?