Will the End of Flavors Mean Better Cigars?

[El Presidente]

Very interesting article particularly for US members. 

 

https://cstoredecisions.com/2023/01/19/will-the-end-of-flavors-mean-better-cigars/

 

Will the End of Flavors Mean Better Cigars?

Cigar smokers who lose their favorite flavors due to FDA regulations are likely to switch to other cigars.

By John Geoghegan | January 19, 2023

 

Change always produces unintended consequences to go along with whatever seemed like a good idea at the time.

When desktop computers took much of the drudgery out of corporate planning and finance, the intended benefits would include reduced paper use that would save entire forests. The result turned out to be a 10-fold increase in available business data and information. Paper use more than doubled and led to the invention of Staples Business Centers.

When flavored cigars are finally banned from convenience stores sometime in early 2024, the back counter cigar selection will be reduced by as much as 50%, depending on how narrowly the Food and Drug Administration (FDA) enforces its own rules. Cigar brands will adjust their SKUs to fill some slots.

Cigar smokers’ thoughts about all this remain to be seen. Without flavors, a substantial number will find a better cigar to relax with. If the price is right, they’ll be able to relax a little more often. Imported cigars in convenience stores may benefit from the new rules.

This is where the law of unintended consequences comes in. Long before flavors ruled the shelf, cigars were a mainstream pastime. General Cigar shipped a billion William Penn cigars in 1952. White Owl sponsored the New York Yankees on TV. Cigars helped get presidential candidates nominated. Cigarette sales declined in the late 1960s, followed by sales of nearly 2 billion Tiparillos a year, bought by smokers who wanted to feel better about themselves.

Backbar Evolution
The point is that when flavored cigars go away, we aren’t going to stop smoking cigars. In fact, a lot of cigar smokers who lose their favorite flavor will feel compelled to try something better. When they do, a trend toward quality may well emerge.

After the pandemic, economic uncertainty and political chaos of the past few years, some of us just want to slow down and enjoy a good cigar. College football games are now celebrated by fans (and quarterbacks) on TV with good cigars.

Over the past 15 years or so the c-store cigar section became segmented into flavored and non-flavored items. Flavor facings from Swisher, Backwoods Smokes, Black & Mild, Game and others became 51% of c-store sales.

In the same timeframe, premium imported cigar brands led by Macanudo, Romeo & Juliet, Cohiba and others began offering pouched single-stick choices. Premium imports are setting records, even at prices that stretch the wallets of c-store cigar shoppers.

More affordable premium imports like Blenders Gold and Cuban Rounds are sharing the resurgence. Three cigars for $11 may be easier to enjoy than one cigar for $12. Cigar smokers quickly discover that what you get in quality difference for the price only matters to the critics.

Unlike cigarettes, cigars are multi-dimensional. Different blends produce different taste profiles and strengths. Different sizes and wrappers offer smokes from 15 minutes to two hours with smoother or bolder profiles. Research from 25 years ago showed that cigar smokers may have up to five brands or sizes they smoke depending on the occasion.

The broader trend in convenience retail is toward upgrading the shopper experience with improved presentation, broader selections and fresh, high quality house brands. By the end of 2023, convenience operators might want the tobacco backbar to be part of the overall consumer quality experience with an upgraded cigar selection.

Affordable quality premium cigars for more smokers will mean more sales. This may be the unintended consequence the FDA is handing convenience stores.

John Geoghegan has spent the last 30 years in the tobacco business, including vice president strategic planning at General Cigar Co., U.S. manager for DjEEP Lighters, head of marketing for Kretek International Inc. and manager of LaMirada Cigar Co. He began his career 57 years ago at Procter & Gamble. Geoghegan is a graduate of the University of Cincinnati. He lives in Laguna Niguel, Calif.

[Corylax18]

HAHAHA. This was absolutely hilarious. Near "The Onion" level Satire. 

I dont know if this Octogenarian has ever heard of Jazz Cabbage, but the entire premise of his article is burned by its existence. People dont buy flavored gas station cigars "to relax" they buy them to roll their weed in. 

People arent going to start buying macanudos or fuentes in gas stations to roll up their pot. Most people will switch to hand blown glass, rolling papers, Vape pens with THC concentrate, an apple, etc. These cheap cigars are just one of countless THC delivery methods, not an essential part of the ritual. 

[Cigar Surgeon]

If premium handmade cigars that are infused or flavored get banned, it would be very bad for the NC industry. Those lines are major money makers for the manufacturers that produce them, and I expect they would have to scale back operations substantially if they lost all those revenue dollars.

Everyone thinks Undercrown and Liga Privada when they think of Drew Estate, but Drew Estate makes the majority of their revenue from the ACID line.

[Corylax18]

20 minutes ago, Cigar Surgeon said:

If premium handmade cigars that are infused or flavored get banned, it would be very bad for the NC industry.

That's not what's happening here. Flavored "blunt wraps" have had restrictions placed around their sales. They arent banned, but there will be very few legal paces to buy them, theoretically making it harder for kids to get their hands on them.(lets just pretend internet commerce doesnt exist) This is mostly chop tobacco, mixed with flavoring and pressed into sheets. They arent even cigars. Some of the white owls and backwoods come with tobacco in them, for some reason. But its removed 95% of the time and replaced with another type of "tobacco" they are most certainly aimed at a younger demographic, not kids, but certainly people in their teens and early 20s. 

20 minutes ago, Cigar Surgeon said:

Those lines are major money makers for the manufacturers that produce them, and I expect they would have to scale back operations substantially if they lost all those revenue dollars.

Can you elaborate on this more? Beyond ACID cigars, I don't think I'm even aware of another "premium" flavored cigar brand. Are you saying that most large NC operations rely on a similar flavored line of cigars for significant revenues? Or is it just a case of a handful of huge conglomerates now owning both premium brands and some of the much lower quality brands listed above?

[El Presidente]

Im impressed you guys sell NUB's in gas stations!

 

TOP PICKS

Gas Station Cigars – Our Top Picks

Backwoods – Best-tasting Gas Station Cigar

Black and Mild – Easiest Gas Station Cigars to Smoke

Dutch Masters – Most Widely Available Gas Station Cigars

---

And the best of the rest…

NUb Cigars – Best for When You Want a “Real” Cigar

Macanudo Cafe – Creamy Gas Station Cigars

Avanti Cigars – Liquorice-flavored Gas Station Cigars

Garcia y Vega – A Step up From Backwoods

Parodi – Aged Gas Station Cigars

Braniff Cigars – Best Classic Cigarillos

Prime Time Little Cigar – Most Outlandish Flavors

Arango Sportsman – Best for a Longer Smoke

[Corylax18]

8 minutes ago, El Presidente said:

Im impressed you guys sell NUB's in gas stations!

 

TOP PICKS

Gas Station Cigars – Our Top Picks

Backwoods – Best-tasting Gas Station Cigar

Black and Mild – Easiest Gas Station Cigars to Smoke

Dutch Masters – Most Widely Available Gas Station Cigars

---

And the best of the rest…

NUb Cigars – Best for When You Want a “Real” Cigar

Macanudo Cafe – Creamy Gas Station Cigars

Avanti Cigars – Liquorice-flavored Gas Station Cigars

Garcia y Vega – A Step up From Backwoods

Parodi – Aged Gas Station Cigars

Braniff Cigars – Best Classic Cigarillos

Prime Time Little Cigar – Most Outlandish Flavors

Arango Sportsman – Best for a Longer Smoke

Haha. We don't. At least not at most of them. The only cigar in the "best of the rest" section I've ever seen in a gas station are the "primetimes" and they aren't even cigars. They're just flavored cigarettes with chop tobacco shells instead of paper:

 

[Cigar Surgeon]

26 minutes ago, Corylax18 said:

That's not what's happening here. Flavored "blunt wraps" have had restrictions placed around their sales. They arent banned, but there will be very few legal paces to buy them, theoretically making it harder for kids to get their hands on them.(lets just pretend internet commerce doesnt exist) This is mostly chop tobacco, mixed with flavoring and pressed into sheets. They arent even cigars. Some of the white owls and backwoods come with tobacco in them, for some reason. But its removed 95% of the time and replaced with another type of "tobacco" they are most certainly aimed at a younger demographic, not kids, but certainly people in their teens and early 20s. 

 My initial understanding was that California was banning all flavored tobacco, regardless of size. But Charlie clarifies here:

https://halfwheel.com/california-voters-ban-most-flavored-tobacco-vaping-products-expensive-cigars-exempted/415766/

$12 and up for wholesale pricing provides an exception. At least for now.

It's not going to last forever.

26 minutes ago, Corylax18 said:

Can you elaborate on this more? Beyond ACID cigars, I don't think I'm even aware of another "premium" flavored cigar brand. Are you saying that most large NC operations rely on a similar flavored line of cigars for significant revenues? Or is it just a case of a handful of huge conglomerates now owning both premium brands and some of the much lower quality brands listed above?

Most of the larger manufacturers have premium flavored cigar lines, and those lines generate the majority of revenue.

For Drew Estate it's ACID and Larutan. For Rocky Patel it's the Java series (Latte, Mint, Maduro).  General Cigar is the M by Macanudo, Forged will have the FLVR series. Miami Cigar has Tatiana. Altadis has Dutch Masters and Backwoods.

Those are off the top of my head, there are dozens more. 

[Corylax18]

2 hours ago, Cigar Surgeon said:

It's not going to last forever.

Agreed. Its just the start. As a premium cigar smoker, Its hard for me to push back on this law though. They're specifically targeting products designed and predominantly consumed by the youngest tobacco consumers. $12 bucks seems high to me, but if that includes tax, the actual value is much lower. 

2 hours ago, Cigar Surgeon said:

For Drew Estate it's ACID and Larutan. For Rocky Patel it's the Java series (Latte, Mint, Maduro).  General Cigar is the M by Macanudo, Forged will have the FLVR series. Miami Cigar has Tatiana. Altadis has Dutch Masters and Backwoods.

So its a mix of both, some premium and some cheapies. Large volumes though. I thought Java was just another Acid line, Haha. I've never heard of the other "premium" options though. Thanks for the knowledge. 

[jakebarnes]

I reside where flavor never ends.

Welcome to Flavor Country.

[KnightsAnole]

One wouldn’t add flavoring to good quality tobacco, so what to do now with all the shit tobacco? They’ll probably just turn it into vape juice

[Ford2112]

I have tried one of those Acid cigars and it was a bigger piece of crap than the 25 cent King Edward cigars we used to smoke as kids.

 

 

 

 

[Cigar Surgeon]

13 hours ago, Corylax18 said:

Agreed. Its just the start. As a premium cigar smoker, Its hard for me to push back on this law though. They're specifically targeting products designed and predominantly consumed by the youngest tobacco consumers. $12 bucks seems high to me, but if that includes tax, the actual value is much lower. 

So its a mix of both, some premium and some cheapies. Large volumes though. I thought Java was just another Acid line, Haha. I've never heard of the other "premium" options though. Thanks for the knowledge. 

Believe it or not, there's really no correlation with the majority of consumers of flavored products being younger. I've stood in shops and watched 50 year olds scoop handfuls of ACIDs. 

You're kind of not wrong on the Java, it is made by Drew Estate for Rocky.

[Corylax18]

15 minutes ago, Cigar Surgeon said:

Believe it or not, there's really no correlation with the majority of consumers of flavored products being younger. I've stood in shops and watched 50 year olds scoop handfuls of ACIDs. 

You're kind of not wrong on the Java, it is made by Drew Estate for Rocky.

I agree completely on say products maybe $7 a stick and up. Cigars meant for actual consumption of the cigar. 95% of the cigars the article above mentions have never/will never fit that $12/stick category and aren't created to be consumed as a cigar. They're designed, created and marketed as marijuana delivery methods. One of these "cigar displays" in a gas station is identical to the ones they're sold on in head shops. I think Acid/Java will probably have to pull a lot of their flavored portfolio from Californian shelves. That sucks, but I think that's the result of a bad $$ for the cap, not necessarily a totally flawed law. 

[garbandz]

16 hours ago, Ford2112 said:

I have tried one of those Acid cigars and it was a bigger piece of crap than the 25 cent King Edward cigars we used to smoke as kids.

you are fairly young then, I remember when the King Edward brand sold for  9 cents each, or 3 for a quarter.

[Ford2112]

26 minutes ago, garbandz said:

you are fairly young then, I remember when the King Edward brand sold for  9 cents each, or 3 for a quarter.

50 is fairly young I suppose. I feel much older. 

[Lamboinee]

On 1/19/2023 at 4:26 PM, El Presidente said:

Im impressed you guys sell NUB's in gas stations!

Around my house, it is very common to see a gas station offer Rocky Patel Connecticut, Macanudo, Arturo Fuente Curly Heads, and an Acid.  I'd pick up a Nub first, but the RP would be second. Every once in a while someone sees me smoking a cigar outside my local watering hole and they feel compelled to tell me about the awesome backwoods that they smoke.  I resist the urge to proselytize them.  The flavor situation in US legislitature took a real turn within the last 1-2 years.  They put a stop or a pause on everything and seem more willing to hear arguments about why they should bifurcate the market based on the "premium cigar" designation.  It was one of the few easy to identify instances of our government possibly listening to common sense reasoning.  Davidoffs are different from white owl grapes, we all know that.  Where will it end up?  I predict, that the ban will at least go into place on "flavored" cigars of any variety.  I think the Acid's will be possible collateral damage.I have to admit they are more premium than they are white owl. But,  I cannot see how govie-crats could craft a regulation that banned white owl grapes without banning Acids unless they dove into the long-filler or "machined wrapper" debate. That level of sophisticated analysis is reserved for meteorologists and ESPN talking points.

Although this is truly a "cigar" question issue.....I'm really really intrigued on how menthol cigarettes will fit into this equation.  To @Cigar Surgeon point....I'm not sure on how much revenue is based on flavored cigars...but I would venture to guess that menthol cigarettes bring in a HUGE chunk of change....If they are 86'd under the flavor issue then men across America will no longer be able identify the hottest chicks at the honky-tonk by looking to see who smoke Virginia Slimes.

Here's how I would draft a common-sense regulation that seems to accomplish what the government is really saying - After taking the "cigar" into hand and slicing it lengthwise with a knife or cutting instrument, can thoy rollest thineself a blunt with the tobacco leaf that hath been extracted from your work.  If yes, then the gas station cannot sell thou tobacco product if flavored. If no, because the whole dang thing unravels and falls to dust-shite, then you can sell thouest product at the gas station, but no one will probably buy it unless it be doth called Acid.

[Greenhorn2]

Never understood the flavored tobacco thing. I tried an Acid cigar recommendation and cussed myself for wasting money when I pitched it.