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Re-emerging cigar brands.

Posted By: Doug on Friday Feb 23, 2007
Filed Under: Cigar Industry

Cigar Insider recently had an interesting article about re-emerging cigar brands.
The gist of it all is that the fact that cigar companies are bringing back brands that were introduced in, but did not survive, the cigar boom is a good indicator for the cigar market.

I tend to agree.
And in one of my previous posts I made mention of organic growth the industry has had that seems to rival the “good ol’ days” of the boom.
The fact that demand makes more brands viable is a good sign.
And that the growth has been happening gradually is also good. This means that cigar manufactures have had time to recognize, and plan for the increased demand.
Hopefully that will help curb the quality issues that we saw in the late 1990s.

The Cigar Insider article focused on the VegaFina brand.
I’m not sure though that THIS particular brand is a wise choice.

According to the article it was:

“…a bargain-priced brand from the cigar boom.”

But it has been for sale in Europe for seven years with a different blend and:

“…according to Altadis, is the top selling
non-Cuban brand in Spain, which is the biggest
importer of Cuban cigars in the world.”

If the cigar is THAT good… does it make sense to bring it here under a brand that has a perception in the USA as a FAILED “bargain-priced brand”??

I realize making a whole new brand for a separate market is a big and expensive task.
But so is producing, importing, and selling a cigar that isn’t given a fair shake.

What are your thoughts?

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7 comments so far:

Do you think we should be worried that another boom, and all that comes with it, is coming? I have heard rumblings of worry among associates already.

Posted by: ColbyPants on February 23, 2007 at 6:12 pm

I worry yes, but I think (hope) the industry is a little better prepared.
As long as the growth trends in a less than ridiculous/exponential growth that is.

Honestly this may sound weird but I think my biggest worry is Castro dying.

If he croaks and the embargo ends up going with him… then EVERYONE here in the USA is going to scream for Cuban cigars. I’m not sure the Cuban inventory could handle that without using leaf that they had planned on aging and taking other shortcuts.

Habanos SA has always said they are well prepared for the day the US market opens up… but I’m skeptical.

I’d rather jump through hoops to get a Cuban cigar than see a drop in their quality.

Posted by: Doug on February 23, 2007 at 10:39 pm

yeah I am of the same mind. I dont mind only getting the occasional superlative ISOM, compared to overpriced, readily available crap.

Posted by: ColbyPants on February 24, 2007 at 11:45 am

If the embargo is lifted I expect to see a lot of neophyte Americans buying young and poorly produced Cuban cigars that have been rushed to market, puking and then wondering why in the hell anyone would smoke these things, while people like us will wait on the Habanos and get good deals on high quality Nicaraguan, Honduran and DR smokes. But I don’t think we’ll see the embargo lifted just because Fidel croaks.

On the other hand, Lew Rothman is clearing out his inventory at JR Cigars to make room for all those Bolivars and Cohibas that are going to come rolling in any day now. Lew is hilarious!

As to why anyone would attempt to revive a brand name with a checkered past? I don’t know … maybe Ford will introduce a hybrid Edsel. In France.

Posted by: Tom on February 25, 2007 at 12:12 am

LOL…
Ford is so desperate now-a-days I wouldn’t put it past them.

And I agree on the cigar stuff too.
I doubt whomever replaces Castro will be so different that the embargo will just go away.

And you’re dead on about the neophytes as well. It’ll probably cause a new “boom” … kids will puke… and thing will settle down eventually.

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Re-emerging cigar brands.

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