The Stogie Guys

An important milestone was reached yesterday. The number of co-sponsors on H.R. 1639—federal legislation that would protect premium cigars from Food & Drug Administration (FDA) regulations—hit 150. That means almost 35% of the U.S. House of Representatives is co-sponsoring this bipartisan bill.

Ever since June 2009 when President Obama signed the “Family Smoking Prevention and Tobacco Control Act,” my colleagues and I have written ad nauseam about the danger of granting the FDA jurisdiction over handmade cigars. In fact, our warnings on the subject date back to the summer of 2007, when a Senate panel brought national attention to the issue.

Why have we been so outspoken and persistent in our objection to FDA regulation of cigars? According to an FDA spokesperson, the agency would make cigars subject to registration, product and ingredient listing, additional taxes, and premarket review requirements. Such regulation would be devastating to the cigar industry, and in particular to boutique cigars and the creation of new blends.

The proposition of these regulations also shows a complete misunderstanding of the handmade artisanal nature of premium cigars on the part of FDA bureaucrats. “Ingredient listing” would be nearly impossible beyond “100% tobacco” since blends are regularly tweaked to provide consistent flavor from one year to the next. Further, even if blends aren’t changed, the chemical composition of tobacco leaves changes from harvest to harvest, meaning any disclosure of “ingredients” beyond tobacco would be either completely stifling or totally meaningless.

Similarly, by forcing new cigars to go through a costly FDA approval process, the now constant stream of new cigar blends would grind to a halt. Suddenly, instead of releasing small batch blends, cigar makers would be forced to focus on large runs that they think would have mass appeal after a time-consuming approval process.

Since this issue has come to the fore, our discussions with cigar makers, retailers, and industry leaders suggest a growing consensus: FDA regulation is the single greatest threat facing the cigar industry.

So if your representative is not currently one of the 150 co-sponsors of H.R. 1639 (and if your senators are not co-sponsors of the companion bill in the U.S. Senate, S. 1461) please contact them immediately. The very survival of the cigar industry as we know it may depend on the outcome of these efforts to protect cigars from FDA regulation.

-Patrick A

photo credit: Flickr

In 2010, Rocky Patel bought a 50% share in EO Brands, maker of such lines as EO 601, Cubao, Murcielago, and Mi Barrio (all made at Don Pepin Garcia’s My Father Cigars factory in Nicaragua). Yesterday, Eddie Ortega, co-founder of EO Brands along with Erik Espinosa, announced he was leaving the company and starting his own outfit called Ortega Cigars.

“I’ve wanted to do this for quite some time and now is the right time,” Ortega told Cigar Aficionado. “Eric [Espinosa] is like my brother, but I wanted to be independent.” His new company will be headquartered in Sunrise, Florida, just north of Miami. A buyout of his share in EO Brands is being finalized.

Ortega’s new website has already announced three cigar lines. The first, due in March, is the Series D, which will feature a San Andreas maduro wrapper around Nicaraguan binder and filler tobaccos. Ortega also announced two other lines, Brotherhood and Aftershock, but details were hard to come by. To get some information on the other lines, I touched base with Eddie to see what he is planning.

As for Brotherhood, Ortega tells me he doesn’t have the blend yet, but plans to soon. “I just wanted to start promoting the project because it is for a great cause. I want to somehow help out our military heroes and their families. Fifty percent of all profits will be donated to some of the organizations that help our military men and their families,” Ortega told me. He also said that Aftershock is also still in development.

Ortega plans to keep his company small. He says he already has 100 accounts lined up and wants to limit his exposure to around 300 stores. “I don’t want to open a zillion accounts…just good retailers that support the product. That would be cool with me.”

If that happens, he told me he might not even attend the annual IPCPR Trade Show where new cigar companies usually go to promote their brand and open new accounts. At the moment he is handling his own distribution, but he is “in talks with a couple of distributors, but only to distribute to certain areas in the country.”

The Series D is being made at the My Father Cigars factory in Nicaragua, which is run by the Pepin family, his longtime collaborators at EO Cigars. As for future lines, he said he was “planning to make some brands with other factories.”

Ortega described the Series D as an “awesome blend…We are using some fillers from Jalapa and Estelí that are crazy good and help create a profile that is full-bodied with lots of spice, flavor, and aroma. I know the consumer will love this one!”

-Patrick S

photo credit: Stogie Guys

StogieGuys.com has confirmed that General Cigar, Altadis, Oliva, and Davidoff have told retailers that prices will be going up on many (though not necessarily all) of their cigars.

Altadis price increases ranged from 2.5% to 5%. Altadis USA  makes Montecristo, H. Upmann, Romeo y Julieta, Trinidad, Siglo, Te-Amo, and many other well-known brands. Retailers also have been notified that Davidoff—maker of Davidoff, Winston Churchill, Camacho, Avo, and other lines—is also increasing prices.

General Cigar/STG, the largest producer of premium handmade cigars for import into the United States, raised prices around 3% earlier this week. However, the company’s CAO lines—only recently integrated into the company (details here)—were not included in the price hike. The CAO Cameroon and CAO Maduro cigar prices are decreasing, while the prices of other large cigars sold under the CAO name remain unchanged. According to the company, the increases were implemented “to offset the rising cost of tobacco, manufacturing, and logistics.”

Tobacconists we spoke with didn’t think the price hikes were unexpected. One shop owner felt that many companies had paused normal price increases immediately after the SCHIP tax went into effect to ease the burden on retailers, making the new hike understandable.

Another cigar shop owner was supportive of the increased prices “as long as these companies start committing the necessary financial resources to protect the premium cigar industry from being regulated and taxed out of business by the government.”  General Cigar, Davidoff, Altadis, and Oliva are all listed as “friends of CRA” on the Cigar Rights of America website. [Disclosure: StogieGuys.com is listed as a "CRA Partner" on the same page.]

The practical impact of a 5% increase is that a cigar previously sold to the shop wholesale for $3 would now be $3.15, generally resulting in an increase of the retail price from $6 to $6.30. Time will tell whether consumers are willing to absorb the increase without changing their purchasing habits, or if they respond by purchasing less expensive cigars and/or decreasing the frequency of their cigar purchases.

[UPDATE: Originally this article noted a report on another site that Alec Bradley VP of Sales George Sosa said the company was planning a future price increase of an undetermined amount.  That story has since been pulled on the basis that Alec Bradley withdrew confirmation.]

-Patrick S

photo credit: Stogie Guys

Cigar Paradise came to Earth on November 19 in the form of the Ybor City Heritage and Cigar Festival, an annual event held in the center of Ybor City just outside downtown Tampa. Cigar Dave broadcasting live, a celebrity appearance by Rocky Patel himself, dozens of cigar vendors with special deals, a classic car show, a live band rocking some Sinatra, tents selling beer and burgers, and the sweet smell of burning stogies everywhere might be how you imaged cigar smokers’ heaven, and I can tell you that’s exactly what it was.

As soon as I arrived on this festive scene I lit an Urbano Corojo and began soaking up the sites. Over 2,000 were in attendance and though it was a packed house, there was plenty of room to maneuver and see everything that needed to be seen. Cigar retailers and manufacturers had set up tents all over the place, nearly all of them advertising specials and discounts on their products. As the voice of Cigar Dave boomed across the festival and patrons consumed Cuban food and discussed their favorite tobacco blends, I found myself browsing the tents and encountered deals everywhere I looked.

Upmann 4-pack samplers were selling for as low as $12 and you could find practically any kind of Cuesta Rey for around $5 a stick. I saw 24-pack sampler boxes sold in cedar humidors for $99, the Rocky Patel tent was stacked with boxes and boxes of stogies, and the Arturo Fuente tent displayed a large sampling of their line (a box of the 8-5-8 was nearly sold out). Cigar Rights of America was there signing up tons of new members and I found several vendors who didn’t sell anything even remotely related to cigars but had purchased tables to take advantage of the large crowd.

The center of the attraction was Cigar Dave’s stage. With dozens of tables surrounding him and a live band sitting ready to burst into a medley of classic show tunes, many patrons were happy to sit and smoke cigars while listening to Cigar Dave who was joined on stage by Rocky Patel. Later on Cigar Dave hosted an auction, selling everything from boxes of premium cigars to autographed footballs to expensive pieces of jewelry.

Here he is auctioning a box of 1976 Arturo Fuente Don Carlos brand cigars while Mr. Patel stands to the side signing autographs and posing for photos with fans. The ’76 Fuente cigars sold for $425 and demand was enough that the Fuente family put a second box of 76ers on the auction block and sold them too.

Other attractions included three Tampa Humidor tents, one including sofas and a large screen TV. A classic car show that boasted several beauties including a pristine ’65 Mustang in white and a spotless light blue ’57 Chevrolet Bel Air. The buzz on the street was that over 2,000 were in attendance and everywhere you went you could hear men exchanging philosophies on cigar flavors, blends, sizes and prices. There was a lot of excitement in all corners of the festival and a lot of energy throughout the day. With ideal weather for an outdoor festival it was the perfect way to spend a Saturday afternoon.

The highlight for me was that I was fortunate to shake hands with Rocky Patel and have my picture taken with the man himself. As I climbed to the stage I offered my hand and said, “Mr. Patel, I enjoy your stogies very much.” Patel, with a kind smile on his face, replied modestly as we shook hands. “Thank you, I appreciate hearing that.” He stood patiently and posed while my father fiddled with the camera, never impatient, never rushed. My impression was that Patel was as happy to be there as all of the patrons and vendors. He may be the Don of a lucrative cigar empire and I a lowly cigar blogger, but on that day I realized that not only were Rocky Patel and I both brothers of the leaf, we always have been. And that brotherhood, that unspoken camaraderie among cigar enthusiasts is what makes a celebration like the Ybor City Cigar Festival such a special event.

Thanks for a great day, Tampa. I’ll surely see you soon.

-Mark M

photo credit: Stogie Guys

Last week I was in the Dominican Republic touring General Cigar’s facilities, where La Gloria Cubana, Macanudo, Partagas, and a number of other well-known cigars are made.

Even though it’s not the first cigar factory I’ve visited, it still amazes me how many people are involved in the creation of just one cigar that sells for under $10 (often far less than that). Here are just a few of those steps:

La Gloria Cubana (and El Rico Habano) are rolled in a separate room from Macanudo and General

A La Gloria roller cuts the wrapper before rolling it around the bunched cigar.

Cigars are pressed after bunching (and before rolling) to create a solid shape and even draw. Wooden molds used to be used, but now almost every factory relies on plastic molds which last longer and are more uniform.

Production numbers are kept and quality checked. As you can see, in just three days over 60,000 cigars have been rolled.

One of the most impressive things I saw was one of their tobacco warehouses, where tobacco ages and is stored. In this particular warehouse, they estimated there was $50 million worth of tobacco. At any given point General Cigar says they have $120 million dollars of tobacco stored.

Each bale in the warehouse has a label with key information about the tobacco. This particular label features Connecticut wrapper leaf from 2008.

Curing tobacco is what begins its process from plant to cigar. Here aged tobacco is cured in a heat controlled room with misting water and plenty of airflow.

Wrapper leaves are sorted according to size and color. Size determines the size of the cigar that can be rolled, while color is more of an aesthetic consideration. For example, Genral Cigar won

Fermenting tobacco is what takes it to the final stages before it can be rolled. Fermenting tobacco generates its own heat and must be watched closely or else it can be ruined. Tubes are used to take the temperature of the tobacco.

That’s just a few of the many steps that it takes to produce a handmade cigar. Next time you smoke one, be sure to take a moment to consider the many steps it took and the attention to detail that was necessary to produce a fine cigar. A mistake in any step in the process can ruin what would otherwise be an excellent smoke.

-Patrick S

photo credit: Stogie Guys

In a move many industry leaders have indicated was much needed, this week Cigar Rights of America added another full-time employee. Mike Copperman has been named Legislative Director for Cigar Rights of America. Previously CRA had only two full-time employees.

Copperman was the longtime owner of the Bethesda Tobacco shop just outside Washington, where he spent countless hours educating people on the artisan aspects of premium cigars. (Notably, he graciously conducted a highly educational cigar tasting with the founders of StogieGuys.com many years ago when this website was just getting started.)

Copperman will be concentrating on the CRA federal effort to advance legislation that will exempt premium cigars from regulation by the U.S. Food & Drug Administration. Specifically, he is a noted authority on the healthcare debate surrounding tobacco, and will be a leading expert challenging many pseudo-scientific  reasons given for extending smoking bans and tobacco taxes that hurt consumer choice.

In a statement released announcing his appointment, Copperman stated, “As a professional tobacconist, it was and is important to respond to the erroneous health claims put forth by those in the field of Tobacco Control, and to do so with sound science, and the use of epidemiological evidence to support our arguments. That effort will be critical to the effort to pass H.R. 1639 and S. 1461.”

FDA Exemption Bill Adds Support in Congress

The push comes as CRA’s central legislative effort continues to add support in Congress. CRA and other pro-cigar associations continue to lobby members of congress to support the “Traditional Cigar Manufacturing and Small Business Jobs Preservation Act of 2011,” which would protect cigar consumers and cigar manufacturers from crippling FDA oversight.

Since its introduction in April 2011, the “Traditional Cigar Manufacturing and Small Business Jobs Preservation Act of 2011″ (H.R. 1639) has added 81 cosponsors in the House. The companion bill in the Senate (S. 1461) has three co-sponsors: both Senators from Florida (Democrat Bill Nelson, the lead sponsor, and Republican Marco Rubio) as well as Senator Pat Toomey (Republican) of Pennsylvania.

To further efforts to push for this legislation, Cigar Rights of America has recently added a webpage to make it easy for cigar smokers to contact their representatives in support of H.R. 1639 and S. 1461. Concerned cigar consumers should contact their elected officials here.

-Patrick S

photo credit: CRA

Unless you have the day off work, you might not realize that today is Columbus Day. Still, and particularly if you have the day off , it’s worth revisiting the story of how Columbus and his crew brought tobacco back to Europe and kick-started what would become today’s cigar industry:

Columbus (right) is widely credited with introducing the tobacco plant to Europe, which set in motion a series of events that culminated in the cigar industry we see today. It was during Columbus’ voyages to the new world that Europeans first encountered the tobacco plant.

According to history, it was two of Columbus’ crew members who were most responsible for bringing tobacco to Europe. Both, Rodrigo de Jerez and Luis de Torres, took a liking to tobacco after seeing native Americans smoking the leaf.

After arriving in Cuba in November 1492, which Columbus thought was the Asian coast, Columbus sent Torres and de Jerez inland to explore the country and to contact its ruler. The two men were received in an Indian village where they saw the native custom of drying leaves, inserting them in cane pipes, burning them, and inhaling the smoke.

Upon his return to Spain, Jerez continued smoking and introduced his habit to his home town of Ayamonte. The smoke reportedly frightened some of his neighbors, resulting in the Spanish Inquisition imprisoning him for his use of the “devil’s weed”—making Jerez the first victim of anti-tobacco laws. He spent seven years in prison for his “sin,” only to be released as smoking was becoming an accepted activity in Spain.

And so a member of Columbus’ crew was not only one of the first Europeans to enjoy the simple pleasures of tobacco, he was also the first victim of anti-tobacco persecution. It’s a story worth remembering, particularly on Columbus Day, and preferably with a fine cigar.

-Patrick S

photo credit: Wikipedia