Heard in the Humidor: April 7-13

LOS ANGELES – Like the Energizer bunny, cigar imports into the U.S. just keep going and going.

Figures for January 2008 have been circulated by the Cigar Association of America and show that, compared with 2007, interest is continuing at a high level. Imports totaled 11.5 million in January, just 0.8% higher than in 2007, when 11.4 million came in.

The CAA noted that a new tariff schedule has changed the classification of little cigars into three groups: those valued at less than 15 cents each, those valued from 15 to 22 cents and 23 cents and more. This is important because in previous years, little cigars were only those in the "less than 15 cents each" category and so some number of little cigars were counted in with "large cigars" and may have even been counted in with premium cigars. That would make the premium cigar totals incorrect for 2007 and perhaps for some years prior.

However, more about this won’t be known until later in the year as the pattern of import reports becomes clear. For the time being, comparisons of 2008 figures to 2007 can provide only a rough basis of comparison to previous years. But at present, it’s the only data available.

In January, the Dominican Republic again led all importers of premium cigars with 5.2 million, or 45.2 percent of the total, followed by Nicaragua at 3.8 million (33.0 percent) and Honduras with 2.3 million (20.0 percent). There were also small amounts shown from The Philippines, Costa Rica and Mexico.

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>> Reincarnation is nothing new in the cigar industry. The latest resurrection of a dead brand is about to come from New Hampshire, where a new version of the venerable R.G. Sullivan 7-20-4 line is soon to be introduced.

What was R.G. Sullivan? It was reputed to be the largest maker of 10-cent cigars in America, reportedly producing more than 54 million cigars a year in the early years of the 20th century from its seven-story factory and warehouse at 175 Canal Street in Manchester. According to Tony Hyman’s online National Cigar Museum timeline, some 350 rollers were making the famed 7-20-4 in 1910, and the brand prospered from its introduction in 1875 until finally closing up shop in 1963.

Now, Kurt Kendall is bringing it back. He’s the owner of the Twins Smoke Shop locations in Londonderry and Hooksett, N.H., and has acquired the trademark for the brand and is finalizing the blend, according to a story in the Manchester Union Leader. "I always compare [blending tobaccos] to grapes: There's all different types of growing climates that produce different tasting products," Kendall said. "I'm going for a rich, full-bodied cigar, but I want it to be very smooth."

Kendall has partnered with manufacturers in Honduras and Nicaragua to blend his perfect product, aging and fermenting the tobacco, then rolling the cigars before aging them again in Spanish cedar boxes for 120 days. Kendall told reporter Greta Cuyler that he plans to begin selling the 7-20-4 line within a year; it's projected to retail for between $5-7. That’s a lot more than 10 cents, but this isn’t 1910, either.

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>> The third Corona Cigar Company store to be opened in Central Florida had its ribbon-cutting ceremony last Thursday in downtown Orlando, showcasing not only a new location, but also a politically astute way to help secure the future of cigars.

Owner Jeff Borysiewicz invited Republican Congressman Ric Keller, who represents the district in which the store is located, to participate in the ceremony. Wrote Borysiewicz, "It is appropriate to have Congressman Keller have the honors since he and his fellow Republicans are credited with saving the cigar industry from complete decimation by voting against an unfair 6,000% cigar tax increase last fall."

It’s a well-thought-out way to make a new friend, since local cigar shops rarely get Congressional visitors, unless they’re located in Washington, D.C. From that standpoint, it might be a worthwhile idea for all new stores to invite their elected representatives to showcase the difference between smokeshops that specialize in handmade cigars and pipes as opposed to cigarettes.

The new Corona store also introduced a themed section, the Diamond Crown Lounge. It’s the second branded lounge inside a Corona shop, the other being the Avo Lounge inside the store located in Lake Mary, Fla. The new Diamond Crown Lounge has, according to Corona, "one of the world’s largest selection of fine Cognacs, aged Scotches, rare whiskies and pre-embargo Cuban Rums."

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>> Short fillers: Find our latest tasting review, of three cigars named for famous people, in our News & Views archives for April 4. Want more? Join us for daily coverage of cigars, accessories, people and issues at www.CigarCyclopedia.com.

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Heard in the Humidor is a publication of Perelman, Pioneer & Company. Copyright 2008; All rights reserved.

Rich Perelman

4/7/08

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