Archive | November, 2016

News: Voters in North Dakota, Missouri, and Colorado Reject Tobacco Tax Hikes

9 Nov 2016

voted-sticker

Yesterday, voters in four states considered ballot measures to hike state tobacco taxes, including on handmade cigars. Voters in North Dakota, Colorado, and Missouri appear rejected the proposed tax hikes, while it  California tax increase is passed.

Below are the latest results, which will be updated as votes are tallied. Here are the final percentages for each vote:

North Dakota Measure 4 (Results: 62% Against)

North Dakota’s Initiated Measure 4 would increase the tax on cigarettes 400% from 44 cents per pack to $2.20. All other tobacco products, including cigars, e-cigarettes, and vaping products, would see state taxes double from 28% of the wholesale purchase price to 56%.

Colorado Amendment 72 (Results: 54% Against)

In Colorado, anti-tobacco forces are trying to alter the state constitution to include triple taxes on tobacco products. The amendment would increase the tobacco tax by $1.75 per pack of 20 cigarettes, from 84 cents to $2.59, and jack up taxes on other tobacco products, including cigars, by 22% of the wholesale list price (on top of the existing 40% tax already in effect).

Missouri Proposition A (Results: 55% Against)

Missouri’s Proposition A would more than double taxes on cigarettes from 17 cents per pack to 40 cents, with the increase being phased in through 2021. Taxes on other tobacco products, including cigars, would increase by 5% of the manufacturer’s invoice price to 15%. Missouri voters are also rejecting Amendment 3, which would hike tobacco taxes 400% from 17 cents to 77 cents, with extra fees being applied to companies not subject to the master agreement settlement with the state.

California Proposition 56 (Results: 63% In Favor)

Anti-tobacco forces in California proposed to increase cigarette taxes $2 per pack, from 87 cents to $2.87. Other tobacco products, a tax category that includes cigars, would face a corresponding 230% increase in a state that already has record-high taxes.

The presidential result and Republican control of the House and (likely) Senate also have important implications for cigar smokers when it comes to FDA regulation, taxes, trade, and Cuban policy. More on that in the coming days.

–Patrick S

photo credit: Flickr

Cigar Review: Blind Man’s Bluff Robusto

7 Nov 2016

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Caldwell Cigar Co. was launched in 2014 by Robert Caldwell with a lineup of Dominican blends. The company seemingly came out of nowhere; its cigars debuted only about eight months after Caldwell walked away from Wynwood Cigars, a co-venture with Christian Eiroa, formerly of Camacho. Most people will tell you eight months isn’t nearly enough time to create and execute a vision for a new brand, but Robert Caldwell isn’t most people.

bmb-robustoThe following year, in 2015, in an effort to reach segments of the market that don’t typically seek Dominican smokes, Caldwell introduced Blind Man’s Bluff. The line is crafted at Agroindustrias Laepe S.A. in Danlí, Honduras—best known as the factory that produces Camacho—using a “their kitchen, our chef” approach. Caldwell says the intention was to make a “Caldwell-eqsue” cigar from tobaccos to which he didn’t previously have access.

The Blind Man’s Bluff recipe calls for an Ecuadorian Habano wrapper, Honduran Criollo binder, and filler tobaccos from the Dominican Republic and Honduras. It is offered in three sizes: Toro (6 x 52), Magnum (6 x 60), and Robusto (5 x 50). (My colleague has also reviewed a Corona Gorda that’s exclusive to Burns Tobacconist in Chattanooga, Tennessee.)

I smoked a five-pack of the Robusto vitola for this review (the pack was $37.50, or $7.50 per cigar). Beneath the cigar’s interesting and memorable band—which features a black and white portrait of a man in a bowler hat with his eyes smudged out—is a silky wrapper with a few large veins. The Robusto is moderately spongy to the touch with a few soft spots. The pre-light notes at the foot are a combination of earthiness and dried fruit.

Once lit, I find a medium-bodied, bready profile of cedar, subtle black pepper, papery airiness, and warm tobacco. The texture is light yet it has a leathery core. Salt hits the tip of the tongue while a soft sweetness adds balance in the background. The pace at which you smoke drastically impacts the intensity of the salt so, if you’re like me and want to limit that flavor, you’ll want to take your time between puffs.

Into the midway point, the salt begins to fade while green raisin and hints of vanilla join in. This marks the point at which the Robusto is most enjoyable. The final third is characterized by a slight increase in spice and intensity. I will note, however, that I don’t think this cigar ever ventures beyond medium-bodied.

Construction-wise, the burn line leaves something to be desired; touch-ups are needed along the way to keep things on course. The draw is perfect, though, and the smoke production is above average. I would also add the gray, finely layered ash holds well off the foot.

As I burned through this five-pack, I realized the Blind Man’s Bluff Robusto is my personal introduction to the Caldwell Cigar Co.—a surprising revelation given how I have appreciated (from an apparent distance) the unique names and interesting artwork associated with the Caldwell brands. I will be actively seeking out other Caldwell blends to see how they suit my palate. But this Robusto, while certainly not bad, doesn’t seem to deliver much of what I’m looking for. I find it somewhat dry and not as flavorful as I had hoped. For me, it rates a respectable though uninspired three stogies out of five.

[To read more StogieGuys.com cigar reviews, please click here.]

–Patrick A

photo credit: Stogie Guys

Quick Smoke: Aging Room Solera Dominican Sun Grown Festivo

6 Nov 2016

Each Saturday and Sunday we’ll post a Quick Smoke: not quite a full review, just our brief verdict on a single cigar of “buy,” “hold,” or “sell.”

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Adapting a Spanish technique sometimes used in aging various alcoholic and other liquids, Aging Room’s Rafael Nodal created Solera, a new line of cigars with four different wrappers. All feature Dominican fillers and binders. I smoked the Sun Grown Festivo, a 4.7-inch smoke with a ring gauge of 52. The Solera process involves mixing tobaccos together as they age after fermentation, rather than the more common method of aging tobaccos separately. I can’t say how much difference it made, but I did find the Solera smooth, balanced, and tasty with a long finish. Well worth a try.

Verdict = Buy.

–George E

photo credit: Stogie Guys

Stogie Guys Friday Sampler No. 504

4 Nov 2016

As we have since July 2006, each Friday we’ll post a mixed bag of quick cigar news and other items of interest. Below is our latest Friday Sampler.

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1) Serious Cigars, a four-location retailer in Texas that also operates an online shop, has been acquired by Tabacalera USA, the U.S. premium cigar division of Imperial Brands PLC, a global tobacco conglomerate that includes Altadis U.S.A. and JR Cigar. As part of the acquisition, Tabacalera USA has created Casa de Montecristo, Inc.—a division that will focus on the management of the various Casa de Montecristo locations. Eventually, the four Serious Cigar stores in Texas will be known as Casa de Montecristo by Serious Cigars. “Ron and JeanneMarie Lesseraux founded Serious Cigars as a small online retail business in 1996,” reports the Houston Business Journal. “They opened their first location near Willowbrook Mall in December 2003 and have since opened three other locations in the Galleria area, near George Bush Intercontinental Airport and in Webster. The Lesserauxes will remain with the company to help with the transition, and no major changes are expected for Serious Cigars’ stores or website, according to a Nov. 2 press release.”

2) Inside the Industry: If you have an extra $25,000 laying around, you can cash in on one of five 50-count Oro Blanco Special Reserve 2002 cigars from Davidoff. What makes this cigar worth $500 apiece? “The Oro Blanco Special Reserve 2002 is like no other cigar,” according to an email circulated by Davidoff yesterday. “The tobaccos used to craft it will be used for Oro Blanco alone. No other cigar will ever–ever–use the same tobacco. The experience of enjoying an Oro Blanco will therefore be like nothing else aficionados have ever known.” Each batch of 50 must be specially ordered at a Davidoff Flagship store.

3) From the Archives: Maybe the worst sight you can see when you open your humidor is a cigar with a beetle hole. But if it happens to you, don’t panic. Our tip from 2010 shows how to mitigate a potential beetle outbreak.

4) Deal of the Week: Limited quantities of our StogieGuys.com-selected sampler are still available at Cigar & Pipes. Included are cigars we enjoyed years ago that still remain staples in our humidors. Just $58.49 gets you 10 cigars, well below MSRP, including some high-end smokes from Padrón, Fuente, and Oliva.

–The Stogie Guys

photo credit: Serious Cigars

News: Four States Have Tobacco Tax Hikes on the Ballot on Election Day

2 Nov 2016

With Election Day less than one week away, all eyes are on the presidential race and, to a lesser extent, which party will control the House and Senate next year. But voters in four states will also be weighing in on ballot questions that, if passed, would hike tax rates on tobacco products, including cigars.

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California Proposition 56

Anti-tobacco zealots hope to increase cigarette taxes $2 per pack, from $.87 to $2.87. Other tobaco products (OTP), a tax category that includes cigars, would face a corresponding 230% increase. Critics say the tobacco tax hike “lines the pockets of special interests, but fails to address pressing needs facing California families, like fixing schools, roads, water storage, and violent crime.”

North Dakota Measure 4

North Dakota’s Initiated Measure 4 would increase the tax on cigarettes 400% from 44 cents per pack to $2.20. All other tobacco products, including cigars, e-cigarettes, and vaping products, would see state taxes double from 28% of the wholesale purchase price to 56%. Although proponents say the money will be spent on smoking cessation, opponents point out that the measure contains “nine pages of print that only detail four sentences as to how and where this money will be spent,” leading to wide discretion for bureaucrats and politicians to potentially spend the money on pet projects.

Colorado Amendment 72

In Colorado, anti-tobacco forces are trying to alter the state constitution to include triple taxes on tobacco products. The amendment would increase the tobacco tax by $1.75 per pack of 20 cigarettes, from 84 cents to $2.59, and jack up taxes on other tobacco products, including cigars, by 22% of the wholesale list price, on top of the existing 40% tax already in effect. Those against the amendment note that the tax would disproportionately impact low-income people, and that because the revenue would be earmarked in the constitutional ammendment, it couldn’t be directed to government programs where it might be put to better use.

Missouri Proposition A

Missouri’s Proposition A would more than double taxes on cigarettes from 17 cents per pack to 40 cents, with the increase being phased in through 2021. Taxes on OTP, including cigars, would increase by 5% of the manufacturer’s invoice price to 15%. In part because the proposition would automatically repeal the additional taxes if a measure to increase any tax or fee on cigarettes or other tobacco products is certified to appear on any local or statewide ballot, many of the anti-tobacco forces that usually back higher taxes on tobacco actually oppose Proposition A as an impediment to even higher taxes later.

Missouri voters will also vote on Amendment 3, which would hike tobacco taxes 400% from 17 cents to 77 cents, with extra fees being applied to companies not subject to the master agreement settlement with the state. Because it does not impact cigar taxes, many cigar-oriented trade groups, like the International Premium Cigar and Pipe Retailers Association (IPCPR), don’t take a position on Amendment 3. Under Missouri law, if both Amendment 3 and Proposition A pass, the one that passes with the higher percentage takes effect.

As you’d expect, groups like Cigar Rights of America (CRA) and the IPCPR oppose all four ballot questions that would add additional taxes to cigars, which (between state and federal taxes) are already taxed at record-high levels. Opponents of such tobacco taxes point out that they are highly regressive (by impacting those who can least afford them the most) while threatening to put cigar shops out of business, and that if additional revenue is needed a fairer approach would be a broad-based, more evenly-distributed tax instead of one that hits an already targeted minority.

Cigar smokers in California, North Dakota, Colorado, and Missouri should exercise their right to vote NO on Tuesday to prevent further punitive taxes on cigars.

–Patrick S

photo credit: Stogie Guys