Commentary: Random Thoughts from the Humidor (XXV)

In this edition of Random Thoughts from the Humidor, I remember an old foe, lament the health of the industry, and ponder how social media is changing cigar marketing.

Actually, It’s CHIP Now, Not SCHIP

Remember SCHIP? All the news about a looming government shutdown—as I am writing this, the House has passed a bill to keep the federal government funded for another four weeks, but the Senate doesn’t look poised to reach an agreement—has brought back memories of the Children’s Health Insurance Program (CHIP), formerly known as the State Children’s Health Insurance Program (SCHIP). Just search “SCHIP” on this site (our search bar is in the upper right-hand corner) and you’ll find dozens of articles, mostly from the period of 2007-2009. This January 2009 article was published and updated on the day the SCHIP tax increase was announced (the cap is, and was, 40 cents per large cigar). As we reminded you on Friday, although CHIP’s “funding” would expire if a government funding deal isn’t struck, the tax on tobacco will remain either way. Fantastic. One silver lining: If and when CHIP’s tobacco tax funding is restored, we can once again claim to be “smoking for the children.”

And the Winner Is… Nobody

As you may have seen at Halfwheel.com, the site is not issuing an award for best new cigar company in 2017 because, well, there really wasn’t one. “We’ve given the award each year since 2013 alongside a host of other awards; that will change this year and there’s a good chance that change will be for good,” wrote Charlie Minato. “Due to a variety of reasons, chief amongst them the U.S. Food & Drug Administration’s (FDA) regulation of premium cigars, there simply aren’t many new companies that would be eligible for the award.” We should all be alarmed by this. Creation, innovation, and new blood are signs of a rich and vibrant industry. This is evidence that burdensome regulations and taxes are taking their toll. For those who would stroll the aisles of the IPCPR Trade Show and cite the volume of booths and displays as an indication of industry health, I say this: Think about all the booths and displays that aren’t here. Think about all we might be missing, especially in the form of limited edition smokes. Looking to the horizon, absent major policy changes, isn’t it fair to expect more cigar company consolidation and closures, and fewer new operations?

What Is Skip Martin Eating Today?

Thanks to social media, the way in which the cigar smoking public connects with cigar makers has changed drastically in recent years. In the past, if you wanted to converse with your favorite cigar maker, you’d need to attend a huge gathering like Cigar Aficionado’s Big Smoke, or wait until he hosts an event at a retailer in your area. Today, you can simply log on to Facebook to trade comments, messages, photos, etc. Many cigar smokers even tag the cigar maker when they’re enjoying one of his cigars. The savvy cigar makers are embracing this trend, using Facebook to update their many followers about what they’re smoking, blending, working on—even eating and drinking. In this fashion, social media becomes a powerful tool to constantly stay top of mind with your most loyal customers. It also allows the cigar makers to bypass more traditional media options—like industry magazines, press releases, and, yes, blogs—and take messages directly to the masses. If you doubt this trend, just follow Skip Martin of RoMa Craft Tobac and Steve Saka of Dunbarton Tobacco & Trust on Facebook; they’re constantly posting (some might say marketing). I am surprised more cigar makers don’t wholeheartedly adopt this approach.

–Patrick A

photo credit: Flickr