Stogie Commentary: More Industry Consolidation Coming?

14 Oct 2009

Rarely does a month go by without some whisperings of an imminent major cigar industry deal. And to be fair, between manufacturers, distributors, and retailers, there are plenty of prime targets for consolidation in the cigar industry.

pepinMirandaThere are also plenty of reasons for such consolidation. Larger companies can better adjust to the new tax and regulatory burdens that cigars now face. Combining sales forces and distribution channels can lower costs, keeping prices down for consumers while keeping profit margins healthy. Increased buying power also ensures access to the best tobacco available, as well as bigger advertising budgets to get the word out about new products.

But besides the business reasons, there’s another reason why I think I hear these rumors with such regularity: It’s fun to speculate—some might call it gossip—about such things. After all, in the past year  I’ve heard rumors that Rocky Patel has fielded offers from both General Cigar and Davidoff. But that’s the old rumor, so let me get on to the newest.

A Deal Going Down in Miami?

One such rumor involves La Aurora, distributor Miami Cigar & Co., and Don Pepin Garcia. I first took notice of the speculation when Gary Korb of Famous Smoke Shop, and chief writer of CigarAdvisor.com, posted a highly suggestive article linking Rene Castañeda, vice president of Miami Cigar & Company, with Don José Pepin and Jamie Garcia and Guillermo León and José Blanco of La Aurora.

According to Korb, the group was spotted meeting in the Dominican Republic, leading Korb to speculate about “some sort of distribution pact or, even more significantly, the acquisition of Pepin’s company by La Aurora.” Then, in a follow-up post, Korb reported that Guillermo León (of León Jimenes cigars and La Aurora) was making his first trip to Nicaragua reportedly to visit the Garcias at their Tabacalera Cubana (TACUBA) factory.

Neither of those reports meant much to me, until a source told me that they had just spotted a similar group (including Nestor Miranda, Rene Castañeda, and José Blanco) at Garcia’s El Rey de los Habanos factory in Little Havana, Miami, accompanied by Pepin and his daughter, Janny Garcia. Could they be finalizing some deal started in the Dominican or Nicaragua?

Such a deal wouldn’t be shocking. The pieces already seem in place: Garcia already makes cigars for Nestor Miranda (pictured above with Pepin Garcia), head of Miami Cigar & Co., as well as 601 and Cubao for EO Cigars, which is distributed by the same outfit. Meanwhile, Miami is already the distributor for La Aurora.

Of course, it could all mean nothing. But then again it could be the makings of a major deal. Either way, the speculation is fun and we’ll be making some inquiries to see what else, if anything, we can find out. Naturally, if we learn anything juicy, we’ll report it exclusively here at StogieGuys.com.

Patrick S

photo credit: Smoke Shop Magazine

Stogie Reviews: Mi Dominicana Corona

13 Oct 2009

Two months after the 77th annual International Premium Cigar and Pipe Retailers Association (IPCPR) Trade Show in New Orleans, the industry remains focused on the newest additions to the market. But many of us still have some catching up to do. The Mi Dominicana, introduced at last year’s IPCPR event in Las Vegas, is one blend that, until recently, never made it into my humidor.

Mi Dominicana CoronaMi Dominicana is the first Dominican puro made by tobacco giant Altadis. It is crafted by José Seijas, general manager of Tabacalera de Garcia, Ltd.—one of the biggest cigar factories in the world—and the man behind the Dominican versions of Montecristo, H. Upmann, and Romeo y Julieta.

Born in Santo Domingo, Seijas created this eight-vitola blend to honor his Dominican heritage. “Everything that is beautiful about the Dominican Republic has gone into this cigar,” he says on Altadis’ website. “Mi Dominicana is my personal tribute to our nation and our people…[It] truly captures the pride of my country.”

That pride is evident in the Corona’s promising appearance. This five and a half inch by 44 ring gauge cigar includes a carefully applied cap, a firm feel, and a toothy, oily wrapper. The sole aesthetic drawback is the network of thick veins that crisscross the cigar’s surface.

Pre-light, sweet floral notes shine though. A cold taste reveals honey on the lips and a slightly stiff draw, then the first lighted puff produces notes of sage, coconut, almond, and toast. The profile is fairly balanced and medium-bodied, and the aftertaste reminds me of yellow cake.

These flavors remain largely unaltered at the midway point. The only change, unfortunately, is a bitterness on the finish. That, and I find myself growing a bit bored of the once interesting taste—a boredom that carries through to the end of this 90-minute smoke.

While the flavor is neither completely dull nor utterly inspiring, Mi Dominicana’s physical properties are above average. The draw opens nicely, the white ash behaves well, and the burn only requires minimal touch-ups to stay even. These characteristics were apparent in both Corona’s that I smoked for this review.

Still, for a cigar that commands a price tag of about $7-8 apiece, José Seijas’ Mi Dominicana falls a bit short. I was left hoping for more from a highly anticipated blend that is intended to espouse the attributes of a great tobacco-growing nation. Ultimately, the Corona earns three stogies out of five.

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

Patrick A

photo credit: Stogie Guys

Stogie Tips: A Little Shoptalk

12 Oct 2009

If you’re a regular smoker fortunate enough to have several cigar shops near your home or workplace, you undoubtedly have opinions about each of them. Sometimes choices are simple—when, for example, only one is open on Sundays and you want to smoke and watch football. But others can be trickier.

Cigar Store IndianFor new smokers still deciding which shop to patronize most, here are four keys to look for. While they’re all important, lets keep in mind that there are undoubtedly great shops that would fail on several accounts.

A good owner. I feel better when the owner is present and involved. It indicates the shop is in the hands of someone who has invested himself as well as his money. Practically, this isn’t always possible. But when it is, I think it says something positive.

A well-kept stock. The humidor should be consistently close to 70 degrees and 70 percent relative humidity. Many smokers keep their personal humidors at different settings, particularly less humidity. With the frequent air exchanges and extremes, though, it’s better to keep the levels up in tobacconists. I also like to see a high-quality thermometer and hygrometer.

Neatness. It counts, just like your mother told you. Seeing dust collecting on cigars, jumbled boxes on display shelves, or overflowing ashtrays creates doubts about how well the stock is treated.

Variety in selection. This one is a bit tricky because smokers reading this article are much more likely to want to try new cigars than the average customer. The store owner has to stock what sells or he can’t stay in business. So I don’t hold it against a shop if it doesn’t have rows and rows and rows of boutique brands. I will be disappointed, however, if there’s little more than the likes of Montecristo, Romeo y Julieta, Punch, and Macanudo to choose from.

That’s what I look for in a great tobacconist. What would you add to this list?

George E

photo credit: Flickr

Quick Smoke: Nestor Miranda Special Selection 20 Aniversario Oscuro Lancero

11 Oct 2009

Each Saturday and Sunday we’ll post a Quick Smoke: not quite a full review, just our brief take on a single cigar.

NestorLancero

This 7 inch by 38 ring gauge Lancero features an attractive, light brown wrapper, a precise pigtail cap, and bready flavors with a subtle graham cracker spice. It’s a pretty mild smoke, which is a stark contrast to the Nestor Miranda Ruky and Danno. As the cigar progresses, it becomes more medium-bodied with a woody core. Construction is excellent—an impressive attribute for a tricky vitola.

Verdict = Buy.

Patrick S

photo credit: Stogie Guys

Quick Smoke: Consuegra No. 574 Natural

10 Oct 2009

Each Saturday and Sunday we’ll post a Quick Smoke: not quite a full review, just our brief take on a single cigar.

Consuegra No. 574 Natural

This long-filler value cigar, made from seconds from the Villazon factories in Cofradia and Danlí, includes Honduran, Dominican, and Nicaraguan tobacco. Construction on the No. 574 (4.5 x 36) is predictably unpredictable. And while the price of about $1 per stick is friendly, the bland, bitter flavor is not.

Verdict = Sell.

Patrick A

photo credit: Stogie Guys

Stogie Guys Friday Sampler CLXII

9 Oct 2009

As we have since July 2006, each Friday we’ll post a mixed bag of quick cigar news and other items of interest. We call ‘em Friday Samplers. Enjoy.

Michael Jordan on the golf course1) Michael Jordan drew the ire of San Francisco bureaucrats on Tuesday when photos emerged of him smoking a cigar. The former Chicago Bulls star, who is an honorary assistant for the U.S. at the Presidents Cup, was playing a practice round at Harding Park Golf Course. City officials subsequently asked the PGA Tour to remind Jordan of their ban on smoking on public courses.

2) Cuba’s government is reportedly slashing the amount of land on the island devoted to growing tobacco by 30%. The move comes in response to global economic woes, which have reduced sales of Cuban cigars by a whopping 15% in 2009. “Cuba is communist but depends heavily on luxury goods: tourism and tobacco,” said a Brookings Institution scholar. “The fortunes of the world’s wealthy set the fortune of Cuba.”

3) Inside the Industry: Tatuaje has released “Drac”—a $13 torpedo (6.75 x 52)—as part of its annual Halloween release. According to reports, the FDA is sending agents into cigar shops to explore the possible regulation of flavored cigars. The four sizes of the Davidoff Cubano Claro limited release are set to hit stores soon.

4) Around the Blogs: Stogie Review checks out the new Illusione Nototros. Keepers of the Flame smokes a Cuchillos Cubanos. Cigar Inspector fires up a Cruzado. Cigar  Spy tourches up a Room 101. Tampa Cigar Examiner examines the Don José Correa.

5) Deal of the Week: We can’t emphasize enough what a bargain these deals are from Cuban Crafters: a box of 25 La Carolinas for just $59 and a box of 25 Cupido Criollos for just $55. Both blends have received 4.5 ratings, which is amazing considering you can get them for under $2.50 a stick. Get yours here.

The Stogie Guys

photo credit: Los Angeles Times

Stogie Reviews: Arturo Fuente King T

8 Oct 2009

Tubed cigars are common in the cigar industry but, until the “King T,” Fuente hadn’t released one except for the limited God of Fire line. The King T has been in production for some time. Delays in creating the tube up to Fuente’s standards, though, reportedly held the cigar off the market until late September, when the cigars started appearing on B&M shelves.

KingTMade by Tabacalera A. Fuente y Cia. in the Dominican Republic, the King T is a seven inch by 49 ring gauge Churchill featuring a Connecticut shade wrapper around Dominican binder and filler tobaccos.

Despite the name, the King T bears little in common with the King B, the big, tube-less, rosado-wrapped torpedo which was released in 2005. Check out the new Queen B (small belicoso) next to the King T if you’re looking for the latest Fuente rosado smoke.

The King T retails for around $10 per cigar, a price that no doubt reflects its special packaging. But you have to hand it to Fuente. When they make a tubo, they create an impressively ornate one.

The tube isn’t the only visually pleasing characteristic of the King T. The Connecticut wrapper is shiny, smooth, and vein-free. And as with most Fuente cigars, this Churchill is impressively firm.

The King T starts out with a combination of papery and peppery flavors. After it settles into a medium-bodied smoke with an oaky woodiness and bread flavors, the finish is long with a hint of cedar spice.

In both looks and flavor, the King T reminds me of the Fuente Double Chateau—but with a bit  more body and spice. Still, even with the spice, it’s well-balanced and mild- to medium-bodied.

The other main difference is that the King T costs nearly twice as much, which is really my biggest complaint. At $10 each, you feel like you’re paying quite a premium for the tubo.

That makes the King T a great gift, but not a cigar I’m likely to buy on a regular basis. With complex flavors, good looks, and flawless construction, though, the Arturo Fuente King T earns a rating of four stogies out of five.

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

Patrick S

photo credit: Stogie Guys