tobacco

A split Legislature in Nebraska is struggling over whether to exempt cigar bars from a statewide smoking ban. The clock is ticking, as it takes effect on June 1. The measure, Legislative Bill 355, would limit smoking to half a dozen bars across the state – specifically, locations that have installed the appropriate humidors and air-handling equipment.

This is not a proposed repeal of the smoking ban. Instead, it's a small exception that would allow adults to consume a legal product ... and it would prevent several businesses from forced closure. In today's economic environment, common sense would dictate that the government doesn't need to put even more pressure on companies that are struggling to survive.

To qualify under the bill, a bar would have to show the State Liquor Control Commission that at least 15 percent of its revenue comes from the sale of tobacco. Few establishments would qualify, according to State Senator Scott Lautenbaugh. Any that tried to skew the results – e.g., by "selling cigars for $15 with a free steak dinner" – would prompt a movement to change the law.

Again, common sense suffers, as it would be tough for a "cigar bar" to stay open if it was giving away expensive meals.

[Photo by Steve Zak]

Graduations, weddings, business meetings ... it's getting harder and harder to have a cigar at these types of events. We like to celebrate, but we can't do it the way we'd like, with a cigar in hand. The Mobile Cigar Lounge thus solves an interesting problem. You can smoke inside while still being outside your venue. The smoking experience can follow you, enhancing any event for lovers of the leaf.

The Mobile Cigar Lounge is enormous, large enough to accommodate substantial crowds. The lounge has been used for as few as four people and to augment events of more than 100,000. At any time, up to 20 guests can sit comfortably. And, yes, smoking is not only permitted but encouraged. Leather benches provide for comfort, and humidors line the walls. A flat-screen television provides entertainment. This self-powered, self-contained environment provides everything you need to make cigar-smoking part of your event.

For amateurs and seasoned veterans, the Mobile Cigar Lounge comes with a "cigarista" – think Starbucks barista with a bit more style, and cigars instead of coffee – to provide a bit of guidance to newbies and generally help the experience along.

The Mobile Cigar Lounge is the most interesting angle I've seen on the cigar business yet. It's the first luxury smoking environment that can follow you. If you're looking for a way to undermine your local smoking ban, this one's tough to beat.

Illegal cigar factories, called "chinchals," have been among the few alternatives for Cubans looking for work in the midst of this global economic crisis. Risking time in prison, employees roll counterfeit Havana cigars in order to make a living. The risk may be worth the return, but it's hard to say.

One roller refused to reveal the extent of his pay raise when moving from state factories to the black market ... but "raise" was implied. Working in the legit world, this employee earned $17 a month. Counterfeit cigars tend to sell for $30 to $40 per box of 25, a price that's up to five times lower than the official price set by the Cuban government.

The price competition is only one reason for the government's distaste for the counterfeit cigar business, but it's a powerful one. Cuba's official cigar company, Habanos S.A., saw a 3 percent drop in sales last year. The government also cites the need to protect the image of the brand and fight corruption on the island. Authorities confiscate 1,500 to 1,700 boxes of illegally manufactured cigars every month.

It could be a losing fight, however. Barriers to entry are low, as supplies are easy to secure. And, desperation plays a role. When you need to put food on the table, risks become more realistic.

A series of limited-edition cigars and boxes is being designed under the leadership of Litto Gomez to benefit El Museo del Barrio, New York City's only Latin American museum. To pull the project together, Gomez is working with artist Ruben Toledo and his wife Isabel, a fashion designer.

The end result, La Flor Dominicana El Museo Limited Edition is a Churchill-sized cigar. The filler and binder are from the La Flor de Palma farm in the Dominican Republic, and the wrapper is from other parts of the same country. The cigars are packaged in off-white lacquer boxes with designs by Ruben Toledo on both sides of the lid. Gomez says that the El Museo has a rich, smooth, full-bodied taste with both sweetness and complexity.

Gomez is making 2,000 boxes available, with each priced at $600. They will be available in May.

Tickets for Cigar Expo 2009 are now on sale. The event takes place on Saturday, June 27 – starting at 2 PM. If you pony up for a VIP ticket, you'll also get to attend a dinner with the cigar manufacturers the night before. So, if you're in Easton, PA and have $150 to burn ($225 for the VIP level), this is an event to check out.

Famous Smoke Shop, the operation behind the festivities, will celebrate its 70th anniversary this year – as guests are likely to notice. "We're going to give this year's attendees the royal treatment," said Famous Smoke Shop Retail Store manager, Tim Carr ... and he gives some pretty compelling examples. "Not only will every guest receive at least 50 cigars, but we'll have plenty of entertainment, waitress service, a cigar menu, fantastic food, and some amazing raffle prizes."

The list of vendors participating this year is long and distinguished, including Altadis, Avo, CAO, Camacho, Davidoff, Joya De Nicaragua, Rocky Patel and General Cigar – along with many others. There's a good chance you'll find something you'll like.

The biggest problem with access to Cuba may not be production capacity, as many suspect. Trademark and copyright issues have the potential to be a greater problem, and there is no easy solution.

You've probably noticed that brands such as Partagas, Montecristo and Cohiba occupy your local tobacconist's humidor. A saunter through a duty free store at any airport outside the United States will put the same names under your nose. Of course, these cigars have nothing to do with each other. The latter are Cuban, the former are not and the companies have no relationships. Cohibas in the United States are not the "non-Cuban" or "legal" versions of a single company's product.

General Cigar Co. Inc., for example, sells Cohiba cigars in the United States. Cohiba is also a prominent Cuban brand. Unfortunately, Habanos S.A. never registered the name up here. Habanos sued General Cigar, and a nine-year battle followed. In 2006, the U.S. Supreme Court ruled against Habanos (shocking, right?), reasoning that the embargo barred a challenge to General Cigar's claim.

When the embargo is lifted, there will be more legal challenges, and several companies will have to change their names and labels – ultimately requiring the reconstruction of brand identities from scratch. Winning the brand battles will have profound consequences. For this reason, General Cigar has "invested" close to $3.5 million on lobbyists over the past 10 years.

As with all other Cuba-related speculation, there is no way to forecast where this issue will go in a post-embargo market. Even if we assume that the Cuban brands will lose their claims, the impact on the market would be nearly impossible to predict. What we do know, however, is that the transition will be far from easy.

Cuba, the Dominican Republic, Nicaragua: these are the countries you would normally associate with the cigar business. But, Greece? Believe it or not, a market for local cigars is growing in Greece, and it's defying the global economic downturn.

Domenico Cigars is a small, two-room factory in Greece that sources its seeds from Cuba. It only puts out 70,000 sticks last year (a record). Instead of positioning the cigars as rare or limited editions, the company offers them at a reasonable $5 each, which is about half the price of the imported hand-rolled Cubans.

The group received little help from Cuba. Though they were able to tour the factories and plantations, nobody offered tips. They weren't allowed to take notes. So, developing an operation in Greece led to plenty of trial and error, with the actual rolling being the hardest part.

Despite the fact that the seeds are Cuban, the cigars are distinctly Greek, thanks to the local soil and the effort that resulted in the current product. The locals, it seems, remain committed.

[AP Photo/Thanassis Stavrakis]

Sigmund Freud thought that sometimes -- just sometimes -- a cigar could be just that, a cigar. Well, I doubt he never envisioned a Camacho Select between Harmony's lips. What's this mean? A new year is upon us, and Camacho's latest calendar is on the market. The "making of" video has followed quickly. Now, you can get a feel for how the tobacco hotties wound up on the pages that adorn the walls of your favorite cigar lounges (or possibly your apartment).

Now, all Camacho needs is a cure for all the new cigar taxes that ail us.

[Thanks, @DylanAustin]

You know the market's tough when cigar smokers talk about cutting back. The crisis is real when they actually do so. With the sale of boxes, humidors and high-end cigar accessories dropping (I have anecdotally) – not to mention a cigar tax increase that has moved quickly from specter to materialization – retailers are scrambling for ways to keep customers in their stores.

When I met with Don Pepin Garcia back in November to discuss his new release, My Father's Cigar, he mentioned the need to keep prices reasonable, citing long-term relationships with his customers as taking priority over short-term measures. But, it looks like this may not be enough – as evidenced by the "nub club."

Discount cigar retailer Famous Smoke Shop has put together a selection of six-cigar samplers, consisting of "nubs," and is pricing them favorably to keep cigar smokers engaged. This new program is intended to allow customers to try nubs without requiring them to shell out for full boxes. Each sampler has three pairs of cigars, each with different wrappers: Habano, Connecticut and Cameroon. Prices range from $27 to $34.50 per pack.

Promotions like this one drive home the fact that we're all in it together. The manufacturers and retailers don't want to see us curtail our smoking experiences or trade down to "lesser" cigars. They want us to smoke what we know we enjoy. At the same time, smokers realize that we have to do our part and continue to buy the sticks we like.

Cooperation is better than any bailout program.

[Photo by Steve Zak]

The 2009 Tobacconists' Association of America (TAA) Convention kicks off on Sunday, March 8. Tobacconists and manufacturers from around the world will converge on the CasaMagna Marriott for four days of reconnecting, deal-making and of course plenty of cigar smoking. I'm currently at this Cancun resort and am happy to give the attendees – and jealous onlookers – a few insights into the event's host.

Surprisingly, smoking bans have crossed the border, forcing the CasaMagna to be smoke-free. The lobby, restaurants, bars and guestrooms, for the most part, are off-limits for puffing. Fortunately, poolside smoking is fine, and you can light up in the bar that sits alongside the beach.

Igniting your cigar may be a challenge. With airlines frustrating efforts to carry torches, matches may be your only available option (unless you bleed your lighter and find someone to refill it for you in Cancun. The wind off the Caribbean is strong, so look for sheltered corners to use when firing up (there are a handful of them almost everywhere on the property).

A loophole in Mexico's smoking laws allows CasaMagna to welcome TAA's smokers into the Sa Si Thai restaurant, as it is a covered outdoor space. So, you'll be able to enjoy your favorite Avo, Fuente or Davidoff (or anything else) unmolested. The hotel has extended this restaurant's hours of operation to accommodate late-night indulging. After last call, you can retreat to your room's balcony to tie off the night with your preferred stick.

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.

According to Gregory Mottola, of Cigar Aficionado, most of Chicago's cigar smoking takes place in local smoke shops. A smoking ban has whittled the field of options down, and there aren't any grandfathered establishments (as there, for example, in New York). Of course, lighting up on Michigan Avenue works for only part of the year, thanks to the city's brutal winters.

Mottola did find luck at Jack Schwartz Importer, a small shop on West Jackson Boulevard in the financial district. The store is small, but it does have a few chairs – for which there is considerable competition. Unfortunately, Jack Schwartz closes at 5 PM, leaving few options for an evening smoke.

When Mottola asks a store manager where people smoke after work, the reply was brutal and blunt: "They don't. This is pretty much it."

Iwan Ries, which also closes at 5 PM, has a 1,000 square-foot lounge on its second floor, with large windows that allow plenty of sunlight. Black leather chairs, televisions and wood floors adorn the lounge. Non-members have to pay a $10 fee (per day), and they, like members, are required to bring their own spirits. The store does not have lockers or personal humidors on site.

President Obama wants to create jobs, yet he isn't too worried about some that already exist. Miami's cigar manufacturers are watching April 1, 2009 with grave concern. The new State Children's Health Insurance Plan (SCHIP) takes effect on that date, resulting in a 900 percent tax increase on every cigar made in the United States – or imported here.

What's at stake?

For Miami, it's the many people responsible for rolling 75 percent of the 272 million cigars rolled in this country. Manufacturers and retailers alike are bracing themselves. A tax that takes the surcharge on hecho a mano sticks from 4 cents to 40.26 cents is cause for alarm.

So, as my sergeant used to say, "Smoke if you got 'em." At this rate, you may not have 'em much longer ... or at least not as many.

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.

Shawn Carmody, of Phillipsburg, NJ, has made a habit of sending care packages to soldiers. Currently a police officer and owner of the Riverside Cigar Shoppe, he has been keeping New Jersey National Guard soldiers equipped with the accoutrements of tobacconic enjoyment. Thanks to Carmody, citizen-soldiers serving with C/102nd Cavalry have been receiving cigars, cutters and other related items from his store.

Carmody's friend, 1SG Tom Decker, is the top enlisted man in this unit (i.e. Charlie Company) and the benefactor's point of contact for the donations that ultimately wind up in the hands of many military personnel. This isn't Carmody's first care package ... that was a shipment of Tastykakes sent to Jimmy Polacari in Honduras in the late 1980s.

C/102nd Cav is expected to come home to Hackettstown, NJ in June, but Decker couldn't wait that long to express his thanks. So, he sent Carmody an American flag that had flown over Camp Syverson, Iraq – a substantial gesture that has no direct translation in the civilian world.

If you're inspired by Carmody's act of generosity, you can take action. Check out Cigars for Soldiers, an organization that has already sent more than 7,000 to U.S. military personnel overseas. (Many thanks to Don Pepin Garcia for his recent donation of five boxes.)