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Hey, Bargain-Hunters: Cigar Prices already Hiked

Filed under: Cigars



The SCHIP takes effect next week, and cigar smokers everywhere are dreading Wednesday. We've seen it coming, and I'm sure a few committed, deep-pocketed smokers have been stocking up to lock in discounts now. For the rest of us, though, there's no choice but to bite the bullet. And, in some places, that bullet is flying faster than in others.

Employees at the 16 Tocacco Depot stores, for example, have been rushing around to put new prices on various tobacco products, even though we still have nearly a week left. Fred Hoyland, who runs the show at that chain, says that some of the manufactures have raised their prices early – weeks in advance, even – in a play to beat the bargain hunters to the tax punch. Hoyland calls this "keep[ing] the market and inventory stable."

So, all your planning was probably for nothing. The house always wins ...

Another Year of Avo, Another New Release

Filed under: Cigars

Why do we love it when Avo Uvezian adds another year to his life? Of course, we celebrate the continued life of this cigar industry's living legend. But, few miss the fact that every new year brings with it another limited edition. I'm still excited about the Avo 80 that came out a few years back – well, three, to be exact. Now that the odometer's hitting 83, Avo and Davidoff are bringing a new cigar to market: the Avo Compañero.

The cigar's namesake calls it "the best blend ever released under my name from the Occidental Kelner Cigars factory in the Dominican Republic." And, let's face it: he's never lied to us before! So, I'm pretty excited about this new stick, and I suspect I'm not alone.

To fête this new cigar, a nine-city tour is planned, each with a cigar dinner featuring the Avo Compañero.

• March 16 - New York, NY – Davidoff of Geneva
• March 18 – Salem, NH – Two Guys Smoke Shop
• March 21 - Lake Mary, FL – Corona Cigar Co.
• March 26 – Houston, TX – Jeffrey Stone Ltd.
• March 27 – Austin, TX – Heroes & Legacies
• March 30 - West Chester, PA – G&G Cigar
• April 1 - Norfolk, VA – Emerson's Cigars
• April 4 – Raleigh, NC – Empire Cigars
• April 6 – Southport, NC – Havana Rays Fine Cigars

Put it on your calendar. I went to an Avo limited edition dinner back in 2006, and I can still remember the evening vividly.

Cigar Taxes Biggest Trend Since Smoking Bans

Filed under: Cigars



Let the madness begin! Following grumblings across the country, more municipalities are starting to jump on the sin tax bandwagon ... and they're targeting us. Maryland, for example, is looking to use tax increases on tobacco (as well as alcohol and payroll) to fund health insurance via the state.

In a bout of much-welcomed civil disobedience, Davidus Cigars in Frederick and Urbana, Maryland, offers a message to his customers on its website: "CAUTION, you are about to enter the government shakedown zone."

The Maryland bill would kick the tax on cigars from 15 percent of the manufacturer's price to 90 percent. Of course, these are not the percentages that consumers would see (as a result of retailer markups), but the impact would be noticeable. Meanwhile, the cigarette tax would increase by 37.5 percent to $2.75. The State of Maryland expects these measures to generate $28 million in tax revenue.

Retailers, of course, are bleak. Davidus owner David Castro believes that the 90 percent tax rate would put him out of business. Proponents of the new expense for cigar smokers are dreaming more optimistic, claiming that cigar industry folks are "Chicken Little crying wolf."

Across the border in Pennsylvania, Governor Ed Rendell's 2009 budget would add another 36 cents per ounce to the tax on loose tobacco and the same amount for every 10 cigars. The tax on cigarettes would move from $1.35 to $1.45.

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