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SWEDISH MATCH USING FOIL FOR FRESHNESS

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Xikar buys its humidor and humidifer supplier:
Kansas City-based Xikar has made a considerable name for itself in cigar cutters and is one of the top – if not the top – brand name in that segment. Now watch for them to make a major play in the humidor sector.

Xikar bought Willits, California-based Madelaine Humidification Systems last Friday, greatly expanding its humidor line from three models in its 2007 catalog to more than a dozen in Madelaine’s current line.

Madelaine’s humidor choices include models holding from 15 cigars up to 200 in a variety of familiar and exotic woods, including cherry, mahogany, black walnut, burlwood, bubinga and sapelle. It also makes a series of hard-shell travel cases that hold from five cigars all the way up to 80, nor to mention a full line of humidification devices from a small disk for maintaining 50 cigars all the way up to larger devices for 250 cigars.

Xikar said in a statement that it will distribute all Madelaine brand products from its Kansas City headquarters. Madelaine founder and co-owner Jon Bixler will maintain a limited role in the business, consulting with Xikar over the next two years. Some Madelaine products – most likely the humidifiers – will continue to be sold under the original brand name, since they’re already well known under that name.

Xikar President Kurt Van Keppel noted that Madelaine’s commitment to quality “attracted us to Madelaine first as a customer, then business associate and now owner. Xikar’s goal is to become the no. 1 cigar accessory in the trade – demanded by consumers and retailers alike. With the acquisition, Xikar is now positioned to offer customers even more quality products & service.”

House upholds Bush veto on SCHIP as expected:
The U.S. House of Representatives did the expected and failed yesterday to override President George W. Bush’s second veto last December of a bill to expand the State Children’s Health Insurance Program (SCHIP).

The bill passed the House by a 260-152 margin, but fell short of the 275-vote total that would make up the two-thirds majority required to override a veto. The bill would expand SCHIP coverage from six million to 10 million people, including some adults and would have cost an additional $35 billion beyond the existing program.

This additional coverage would have been funded principally by taxes on tobacco, including the raising of the federal tax rates on cigars from 20.719 percent of the manufacturer’s wholesale price to 53.13 percent and the tax cap from 4.875 cents per cigar to $1 each. These additional taxes would have a devastating impact on the U.S. cigar market, not to mention the damage done to the supply chain of factories and farmers in foreign countries such as the Dominican Republic, Honduras and Nicaragua.

Congressional Democrats, however, are not done with the issue. “It’s our determination to continue to push this,” said Rep. Rahm Emanuel (D-Illinois) while Republican Dave Camp of Michigan reminded reporters “I think it's important to highlight that this is simply a political exercise.”
~ Rich Perelman

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