A Wild Ride Across the Country
Welcome to the Cigar Industry weekly roundup. Many of you are also viewers of the “Meet in the Middle Cigar Show,” with LeeMack912, Hyacinth and where you’ve heard me mention the importance of community. If you find value in the content we’re producing, either on the show or here on the iROBUSTO Substack, we’d be grateful if you shared it with a friend. A personal recommendation is the best way to help us grow. We just ask that you please share responsibly and don’t spam!
And now onto the news..
The Big Picture: A Market Splits in Two
This week, the cigar industry showed it’s moving in two opposite directions at once, like a barbell with weights on both ends but nothing in the middle. Companies are either making super-expensive “luxury” cigars or very cheap “value” cigars. It seems like medium-priced, everyday cigars are being left behind.
High-End: Altadis U.S.A. launched its “Aging Room Blue Amber” line, with cigars that cost between $40 and $43 each. To make them feel even more special, the brand is also selling a $1,000 watch made with the same rare blue amber gem that inspired the cigar.
Value-End: Tatuaje, a brand normally known for “boutique” (smaller, high-quality) cigars, made a big move by launching its “Series P Honduras” line. These cigars cost less than $5. This is a major strategic pivot to capture the growing market for cheaper cigars and to use tobacco from Honduras, which is becoming more popular.
At the same time, companies are worried. They fear new anti-cigar laws in the U.S., especially in California. Because of this risk, many are investing money to open new, fancy “branded lounges” in Europe, where the market feels safer and more stable.
Key Worries for the Cigar Industry
1. The Threat of Anti-Cigar Laws
Companies are worried about new anti-cigar laws in the U.S., which they see as a significant danger to their business.
The text specifically points to California as a state where this legal threat is a major concern.
Because of this risk, companies view the U.S. market as less safe and stable for investment.
This has led some to invest their money in Europe instead, where they are opening new “branded lounges” in what they consider a safer market.
2. The Threat of New Tariffs
There is a specific worry about the “threat of new U.S. tariffs on Nicaraguan imports.”
This specific worry was a major reason why the Tatuaje brand made its strategic move to start producing its new, low-cost line in Honduras.
By diversifying production to Honduras, the company is protecting itself (or “hedging”) against the risk of its Nicaraguan products suddenly becoming much more expensive due to new taxes.
Key New Cigars Announced
Besides the two extremes, here are the other big launches:
Alec Bradley Fine & Rare ANB-228
This is a limited-edition cigar that costs $19.99. Its selling point is a very complex blend made from 10 different types of tobacco. Only 1,500 boxes will be sold.
Cuban Cigars (UK)
The official UK distributor for Cuban cigars is releasing special, aged cigars to celebrate the 90th anniversary of the Montecristo brand.
Drew Estate “Girl With No Name”
This is a new cigar in the popular Deadwood line. It will be sold only at Corona Cigar Company stores.
New Ways to Sell Cigars
Brands are also trying new tactics to find customers and build loyalty:
Partnerships: Dreamer Cigars is partnering with a boxer to create a new cigar, aiming to attract boxing fans who might not already be cigar smokers.
Events in the U.S.: Instead of just opening stores, brands are holding big events. This includes Cigar Aficionado’s “Big Smoke” in Las Vegas and J.C. Newman’s “Haunted Factory Experience” in Tampa to connect directly with smokers.
Team-Ups: A group of small “boutique” brands are working together to sell a “BCA Sampler Pack.” This helps them compete for shelf space against the huge companies.
That’s the news for this week, everyone. Thanks so much for reading and for being a part of the iROBUSTO community.
Next Cigar: Sunday November 9 at 7:15pm Eastern is the Romeo y Julieta Reserva Real Nicaraguan Toro.
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We’re not just reporting the news; we’re building a place to discuss it, and we genuinely want to hear your take. What do you make of all these moves?
Let me know in the comments, and we’ll see you on the next “Meet in the Middle” and back here for the next roundup!
- Mark