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March 22, 2010

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CONVENTION TIME FOR ROCKY PATEL Print E-mail

Although the premium-cigar totals are down, it’s hardly panic time. Judging by the 2007 import pattern, the first six months of the year represented about 42 percent of the total imports for the year. Using that as a guide, the six-month total of 116.22 million would – at the end of the year – be about 276.7 million, which would still rank as the seventh-highest import total ever with only the Cigar Boom years of 1997-98 and the renaissance years of 2004-07 ahead of that total (albeit with some number of little cigars in the total).

Overall cigar imports, including machine-made and little cigars, show that the cigar trade is reasonably healthy, with total imports up a remarkable 20.9 percent. Large cigars, which include both hand and machine-mades, are up a sensational 23.1 percent from 399.51 million to 491.64 million so far this year. Little cigars have continued their climb, up 15.7 percent from 165.86 million to 192.19 million.

All together, some 683.82 million cigars of all types have been imported into the U.S. in the first six months of 2008. Despite the economic, legislative and taxation challenges facing the industry, that’s pretty good.

U.S. exports of finished cigars are up so far this year for large cigars (7.4 percent), but down considerably for little cigars – which had been a runaway success – now down 21.6 percent over last year.

The largest customer for U.S.-made cigars, large and small, continues to be Canada. Exports to the Great White North account for 41.68 million of the total of 139.39 million cigars exported, or 29.9 percent. The next largest customer is Latvia, which had imported 17.4 million little cigars already this year after taking none in 2007.

Cuban machine-made cigar lines to be expanded
In the wake of a strong increase of 10.9 percent in sales in 2007, Internacional Cubana de Tabaco, S.A. (ICT) is expanding its offerings in the machine-made cigar sector.

The Belinda and Troya brands will have shapes added to their lines; both lines have recently been made in just 2-3 sizes each. The Punch brand will also add a “mini” size which has proven very popular for some of the other, handmade brands. The specifics are due to be announced at the ExpoCuba conference and trade fair in November.

ICT is a joint Spanish-Cuban venture and makes machine-made (“mecanizado”) cigars under 10 brand names and in 44 sizes. Exports of machine-made cigars have been rising, notably in Europe thanks to their lower prices, with a reported 11.9 percent gain in the number of cigars shipped in 2007.

No significant damage for biggest Dominican cigar cos. from Hurricane Fay
Despite heavy damage caused by Hurricane Fay on the island of Hispanola, the two largest cigar producers said there was no damage to their installations. Both Altadis U.S.A. and General Cigar indicated their factory and farm installations did not suffer badly, although there was considerable damage in other parts of the Dominican Republic.
~ Rich Perelman
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Because Fonseca Port is so well known, some 1920s Fonseca cigars came in canisters shaped like bottles of Port!