
One of the common themes on forums, blogs, and podcasts these days is dissatisfaction with the seemingly endless number of limited and special edition cigars. “I’m through chasing them,†is a typical complaint.
Tiring it may be, but don’t expect the trend to go away anytime soon (barring, of course, some U.S. Food and Drug Administration intervention). Ongoing changes in the cigar industry—from sales to buying habits—are likely to lead to more small releases.
I’m no industry insider, and I have no special knowledge. My conclusions are drawn from conversations with a few manufacturers and retailers, as well as keeping up with and observing the industry for quite a few years.
Consider:
— The premium cigar industry is not growing much, if at all, in terms of sales. Imports for 2014 were essentially the same as for the previous year. At least some manufacturers don’t anticipate 2015 to be much different.
— Much of the growth comes from new smokers, who are apt to be younger and not nearly as tied to a brand as are many older smokers. Retailers of yesteryear can tell you of the many, many customers who’d stop by once a week or month and pick up a box or two of the same cigar like clockwork. These days, customers are much more likely to be looking for what’s new and their repeat box purchases occur far less frequently, if at all.
— Events are driving a higher and higher chunk of sales. Whether a single store/brand affair or massive productions like Big Smoke or Smoke Inn’s Great Smoke, customers expect to be entertained and enticed, as well as given a bargain. Without something new to offer, vendors can find themselves at a disadvantage.
— The growing cigar production industry, especially in Nicaragua, has created bigger factories and more trained workers, both resulting in increased capacity. Those who want to create their own brand can find tobacco and facilities to do it.
Of course, none of this means every company’s success is dependent on novelty or constantly introducing new cigars. Dominant brands such as Padrón and Arturo Fuente continue to be industry leaders and seem virtually unaffected by trends or fads.
But for smaller, newer brands it becomes tougher to break out of the pack and that leads to efforts to distinguish yourself, whether that’s a massive ring gauge, a shop exclusive, a limited run, outrageous packaging, or something else.
I can’t say what lies ahead. But I wouldn’t look for the rate of releases to slow down anytime soon.
–George E
photo credit: Flickr