 Plus: Bill permitting FDA regulation of tobacco introduced in U.S. Senate
Los Angeles, March 22 – Tobacco giant Altadis has tightened its grip on the U.S. market in our latest survey of who makes and distributes the top brands in America.
Based on data through the end of January, Altadis S.A., headquartered in Paris and Madrid, now controls some 131 brands of 1,091 on the U.S. market through two of its subsidiaries: Altadis U.S.A. (64 brands) and Cigars by Santa Clara, the overall leader among U.S. distributors with 67 brands.
The only distributor even close to these two is Swedish Match, which controls 65 brands, mostly through its General Cigar subsidiary.
This dominance places Altadis in the best position to capitalize on the inevitable expansion of the U.S. cigar market after the death of 78-year-old Cuban president Fidel Castro, whenever that takes place . . .
• Altadis S.A. owns half of Habanos S.A., the distribution arm of the Cuban cigar industry and once the U.S. trade embargo is lifted, will be able to sell brands for which it holds U.S. trademarks immediately.
• Through its ownership of Altadis U.S.A., it owns Havana brand trademarks for the U.S. for Gispert, H. Upmann, Juan Lopez, Montecristo, Por Larranaga, Romeo y Julieta, Saint Luis Rey and Trinidad and additional marks for popular U.S. brands including Don Diego, Henry Clay, Onyx Reserve and Santa Damiana.
• Through its control (and soon ownership) of Cigars by Santa Clara (and its retail arm, J-R cigars), Altadis owns or control U.S. brands trademarks for Havana brands Belinda, El Rey del Mundo, La Corona and the currently out-of-production La Escepcion, plus popular U.S. brands Bering, Casa Blanca, La Finca, Montecruz and Temple Hall, among others.
That’s a lot of firepower in one firm.
Swedish Match’s portfolio is also powerful, with top brands Macanudo, Partagas, Cohiba, Hoyo de Monterrey, La Gloria Cubana, Punch, Ramon Allones, Sancho Panza, Bolivar and Excalibur all in the stable. However, unlike Altadis, Swedish Match will have to negotiate with the Cubans on the rights to import Havana brands for which they hold the U.S. trademarks.
Beyond the “big three,” the brand distribution leader is Cigar Domain (better known as Famous Smoke Shop) with 26 brands including Cuban brand name Rafael Gonzalez. Swisher International has 24 brands in distribution, followed by Fuente & Newman and the J.C. Newman Cigar Company with a combined total of 23 to round out the top five. None of the Fuente (Arturo Fuente, Opus X, Montesino) or Newman brands (Cuesta-Rey, Diamond Crown, La Unica) are impacted by the Cuban embargo.
Bill to permit FDA regulation of tobacco resurfaces:
Despite last year’s failure, U.S. Senators Ted Kennedy (D-Mass.) and Mike DeWine (R-Ohio) introduced a new bill to regulate tobacco through the U.S. Food & Drug Administration (FDA) last Thursday.
Associated Press writer Hilary Roxe reported that “The legislation would prevent the FDA from banning cigarettes; the agency also could reduce but not eliminate nicotine. The FDA would not regulate tobacco as a drug, but would create a new product category.”
DeWine commented that “many consumers, including smokers, are surprised to learn that no federal agency has the authority to require tobacco companies to list the ingredients that are in their products.”
If that were the goal, then a bill to require ingredients to be listed would be introduced. The bill which passed the Senate, but died in the House of Representatives last year was nothing less than an attempt to provide the FDA with the authority to effectively ban tobacco products.
A House version is expected to be introduced by notorious meddler Henry Waxman (D-California) and Tom Davis (R-Virginia).
Hammer time:
Two magnificent cigar art pieces are up again on eBay after failing to sell in November.
The first is a glorious red-and-gold cigar storage box, lighter and cutter from the 1800s, probably made in either France or England. It features a lever which opens both sides of the box to reveal nine cigars per side (18 total). The cutter is housed inside a lion’s head on the front of the box!
It was offered at a starting bid of $499.99 last year, but is up for bid starting at $399.99 this time with the auction ending on Sunday evening.
Second (and pictured above) is a sensational Tiffany-made .925 Sterling Silver cigar holder and oil lamp. It was made in Tiffany’s New York store during the Civil War period and can hold up to 28 cigars vertically in circular cut-outs, surrounded by cherubs! The oil lamp on the top would have been used to light cigars, long before butane gas was ever heard of.
The item, nearly mint, was originally offered with a starting bid of $9,500.00, but the opening bid has been lowered to $5,999.99. This auction also ends on Sunday evening.
~ Rich Perelman
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