Tobacco International - March 2019 | Tobacco Products International - Quarter 1, 2019

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The authority on the tobacco industry since 1886 March 2019

Industrial Odor Control Riedel Filtertechnik Offers a Solution

DAVID & GOLIATH STORY OF ALTRIA’S ACQUISITION OF JUUL

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THE PLACE OF RECESS FILTERS IN THE HISTORY OF CIGARETTES

THE CRISIS AHEAD ON THE U.S. TOBACCO ROAD

CAN AMERICAN COOPERATIVES COME TO THE RESCUE?

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March 2019

TI TABLE OF CONTENTS 16

A LOCKWOOD PUBLICATION

24

tobaccointernational.com

The authority on the tobacco industry since 1886 March 2019

Industrial Odor Control Riedel Filtertechnik Offers a Solution

20

DAVID & GOLIATH STORY OF ALTRIA’S ACQUISITION OF JUUL

THE PLACE OF RECESS FILTERS IN THE HISTORY OF CIGARETTES

THE CRISIS AHEAD ON THE U.S. TOBACCO ROAD

CAN AMERICAN COOPERATIVES COME TO THE RESCUE?

ON THE COVER 20

A Solution for Industrial Odor Control Called ‘COPLAS Clean,’ it is an advanced technology for industrial air and gas treatment. Staff Report

14 The David And Goliath Story of Altria’s Acquisition of Juul. TI Correspondent Bob Crew brings his acerbic British wit to bear on the question, “Who won in the negotiations between Altria and Juul?” His answer: Both!

By Bob Crew 16

The Place of Recess Filters in the History of Cigarettes. They are valuable toolsm in product differentiation and brand identity. By Patrick Meredith

24

Grower Cooperatives May Lead to Better Days Can American Cooperatives Come to the Rescue of their grower members? Maybe, but new methods may be needed to meet the new demand, says the manager of the Kentucky burley co-op. By Steve Pratt

26

The Crisis that is Coming on Tobacco Road. American leaf growers reel from the bad news from the marketplace.

By Christopher Bickers

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Now, a German company has come up with a defense on both fronts. Page 20.

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DEPARTMENTS 8

Editorial

10 TI Digest 28 Leaf News 32 Calendar, Advertiser Index To reuse Tobacco International material, ISSN: 0049-3945 (print), ISSN: 2331-8481 (online), access www.copyright.com for the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400.

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TI EDITORIAL

publisher & president

Robert M. Lockwood editor-in-chief

Fewest Tobacco Acres in History in the United States?

Christopher Bickers

Just as this issue was going to the printer, the U.S. Department of Agriculture published its annual Prospective Planting Report, and the estimates for tobacco plantings in the United States are disturbing. Based on surveys of farmers conducted during the first two weeks of March, the report projects that: All tobacco area for harvest in 2019 is expected to total 244,040 acres, down 16 percent from 2018. If realized, this would be the lowest tobacco acres harvested on record.

Flue-cured, at 165,000 acres, is 17 percent below 2018 and accounts for 68 percent of this year’s total expected tobacco acreage.

The burley, at 53,800 acres, is down 12 percent from last year.

Fire-cured, at 14,740 acres, is down 22 percent from 2018.

Dark air-cured, at 6,900 acres, is down 30 percent from last year.

Cigar filler, at 2,200 acres, is down eight percent from the previous year.

Southern Maryland did not change from 2018 at 1,400 acres.

For all types and for the two leading types—flue-cured and burley—the estimates have been smaller for three years in a row. Although not entirely unexpected, the estimates seem to confirm that the downturn in the U.S. leaf industry is not going to be reversed.

I address that question in my story (written before the USDA report) on page 26 “The Crisis that is Coming on Tobacco Road.” American tobacco farmers are facing the grim possibility that their place in the world tobacco economy might be about to collapse. Are there any solutions? Well, maybe. Steve Pratt, the general manager of a tobacco growers cooperative in Kentucky thinks cooperative effort could stem the tide. See his thought-provoking opinion piece on page 24.

And speaking of thought provocation, our London Correspondent Bob Crew brought his acerbic British wit to bear on the question, “Who won in the David and Goliath negotiations between Altria and Juul?” His answer may surprise you (page 14).

Recess filters may seem a fixture of times past in the cigarette industry, but Patrick Meredith of Essentra believes they have a future—and a bright one—as a new era becomes clear. See what he has to say on page 16. And you can learn about How a cold plasma approach can provide a solution for industrial odor control. Finally, please see our brief item pages. Leaf News (page 28) provides updates on the markets in Malawi and Zimbabwe, while TI Digest covers, among other developments, the possibility that recent court cases still in progress in Canada could chase one or more of the three cigarette manufacturers in that country into oblivion. “Given the significance of the judgment, the company fully intends to lodge an appeal against the decision with the Supreme Court of Canada.,” Imperial said in a statement.

production coordinator

— Christopher Bickers, Editor-In-Chief

Melinda Ayala director of exhibitions

Frank B. Schuetze accountant

Roxanne Cordova Melendez accounting@lockwoodpublications.com

CONTRIBUTORS international tobacco Dr. Iqbal Lambat (istanbul, turkey) economic columnist John Parker (richmond, virginia) regional

Mumtaz Ahmad (islamabad, pakistan) Diamantis Chras (piraeus, greece) Bob Crew (london, england) Eugene Gerden (moscow, russia) Guido Jungbluth (santa cruz do sul, brazil) Manfred Körner (hamburg, germany) M. Rifaat Naguib (cairo, egypt) Vladislav Vorotnikov (moscow, russia)

ADVERTISING REPRESENTATIVES Robert M. Lockwood tel: + 1-212-391-2060, ext. 109 email: robert@lockwoodpublications.com europe

Frank B. Schuetze tel: + 49 30 645 7212 fax: + 49 30 6409 1350 email: Frank.Schuetze@lockwoodpublications.com special sales representative

George E. Lockwood tel: + 1-413-548-9700 fax: + 1-413-548-9727 email: lockwood.george@gmail.com

SUBSCRIPTIONS PO Box 424, Congers, NY 10920-0430,US. tel: +1 800-766-2633, intl: +1 845-267-3489 e-mail: subscribe@tobaccointernational.com

TOBACCO INTERNATIONAL MAGAZINE Lockwood Trade Journal Co., Inc. 3743 Crescent Street, 2nd Floor Long Island City, NY 11101, USA tel: +1 212-391-2060 e-mail: editor@tobaccointernational.com

Volume 19, No. 2 TOBACCO INTERNATIONAL (ISSN 0049-3945 print; ISSN 2331-8481 online), established in 1886, is published six times a year, with two monthly issues (September & December) and four combined issues (Jan/Feb/Mar, April/May/June, DECEMBER, Oct/Nov) plus a directory issue published in January of each year by Lockwood Trade Journal Co., Inc., 3743 Crescent Street, Second Floor, Long Island City, NY 11101, USA. Officers: Robert M. Lockwood, president and treasurer. Subscription rates: USA—US$49 per year, US$74 for two years; US$109 for three years. Canada—US$59 per year, US$89 for two years, US$134 for three years. All other countries: International Surface Mail—US$89 per year; US$139 for two years; US$199 for three years.

International AirMail—US$129 per year; US$199 for two years; US$289 for three years. Single copy price: US$15. Annual Buyers’ Guide & Directory: US$45, plus shipping. Copyright ©2019 by Lockwood Publications, Inc. The contents of tobacco international may not be reprinted except by permission. POSTMASTER: Send address changes to tobacco international, P.O. Box 424, Congers, NY 10920-0430, USA.

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TI DIGEST UNITED STATES

FDA resignation positive for tobacco? washington , dc —The

sudden resignation of Scott Gottlieb, commissioner of the federal Food and Drug Administration, in March was the cause of some optimism among Wall Street analysts that regulatory pressure on tobacco might abate.

“His resignation calls into question whether or not Scott Gottlieb the FDA will in fact enforce harsher regulations around youth e-cig usage/access, cig nicotine limits and a cig menthol ban,” wrote Bonnie Herzog, senior analyst with Wells Fargo Securities. “He was the champion behind these initiatives.

“His resignation could have implications (positive, we hope) for the FDA’s approvals of the premarket and modified risk applications for iQOS —long overdue, in our view.”

“We view his resignation positively as it could lead to less regulatory threats…and at least some reprieve from the negative tweets,” wrote Stifel analyst Christopher Growe.

Gottlieb was notable for his use of social media such as Twitter to communicate directly with consumers. “[His] increased threatened regulation on the tobacco industry…weighed on the stocks broadly during his time in office.”

CANADA

Manufacturers will fight back against class action suit mississauga , ontario —The

future of cigarette marketing in the Canadian province of Quebec was brought into considerable question on March 1 when the Quebec Court of Appeal upheld a class action suit against the three major tobacco companies.

The judgment in effect fined the companies—Imperial Tobacco Canada, a subsidiary of BAT, Rothmans Benson & Hedges Inc. and JTI-Macdonald Corp.—15.6 billion Canadian dollars (about US$11.7 billion).

JTI-Macdonald Corp. issued a statement from its headquarters in Mississauga fundamentally disagreeing with the judgment. “[Our] company will take all necessary and appropriate measures to defend its lawful business,” JTI-M said.

“We will thoroughly review the decision and consider all options, including ask-

ing for permission to appeal the decision to the Supreme Court of Canada.”

Imperial Tobacco Canada noted that the fundamental issue of the suit has not been resolved.

“The court’s decision ignored the reality that adult consumers and governments have known about the risk associated with smoking for decades,” Imperial said. “Given the significance of the judgment, the company fully intends to lodge an appeal against the decision with the Supreme Court of Canada.”

Since the 1950s, Canadians have had a very high awareness of the health risks of smoking, JTI-M noted. “That awareness has been reinforced by the health warnings printed on every legal cigarette package for 47 years.”

EGYPT

BAT renews Pall Mall, Viceroy agreement with ETC cairo—British

American Tobacco Egypt has renewed its existing coopera-

tion agreement with Eastern Tobacco Company (ETC) to continue manufacturing “Pall Mall” and “Viceroy” for the Egyptian market.

“The renewal of our cooperation agreement for another five years— until June 2024—lies within our continued commitment to the Egyptian economy,” said Steven Harvie, British American Tobacco Egypt General Manager.

The relationship began in 2001 and has resulted in the manufacture in Egypt of high-quality products, he added.

Besides Pall Mall and Viceroy, BAT Egypt also sells Dunhill, Kent and Rothmans in that market.

GREECE

Papastratos gives shares to its employees piraeus —Papastratos, Philip Morris International’s Greek affiliate, is giving one million euros worth of shares in its parent company to its workers.

In a statement at the end of February, Papastratos said the shares are a reward to workers for an exceptional performance and very strong results in the commercial sector in 2018 and also for the successful transformation of its production unit into an exclusive production center for iQOS products.

The shares will go to all workers, regardless of position, wage or service, the statement said. The gifts will be worth more than 1,000 euros each.

It was noted that Papastratos has a long tradition of awarding extra bonuses each year.

The company is the largest manufacturer and distributor of cigarettes in Greece. It was founded in 1930 by Evangelos Papastratos in Piraeus, according to the statement. Papastratos began a co-operation with Philip Morris in 1975 and was purchased by it in 2003.

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TI DIGEST

PAKISTAN

Philip Morris Pakistan cuts manufacturing capacity by half ko t r i — P h i l i p

Mo r r i s Pa k i s t a n Limited (PMPKL) announced at the beginning of March that it will shut down its cigarette-manufacturing facility here, one of two it has operated in recent years.

This will involve closure of the cigarette-manufacturing facility in Kotri, Sindh, and will impact 194 employees, all of whom will be offered separation packages that will exceed what is required by law, in order to facilitate them through this difficult transition period.

“The increase in illicit trade in Pakistan, together with the global industry volume trend, has impacted legal sales volumes in Pakistan to such an extent that our current manufacturing footprint has become unsustainable,” said Joao Martins, managing director of PMPKL. “[But our company] remains committed to operating in Pakistan, through our manufacturing facility in Sahiwal, [our] green leaf threshing plant in Mardan and by maintaining a strong ongoing commercial presence.”

The wide presence of illicit cigarettes in the country has impacted the legal industry volumes, he said. “As a result, our manufacturing footprint was in excess of requirement. Hence PMPKL decided to consolidate its current manufacturing footprint to achieve greater efficiency and for a sustained business outlook.”

SWITZERLAND

PMI certified for pay equality lausanne—Philip

Morris International Inc. (PMI) has been certified globally for equal pay by the independent third-party Equal-Salary Foundation.

The certification confirms PMI’s commitment to equality.

“The global Equal-Salary certification demonstrates the great amount of work our colleagues across the world

have accomplished in confirming equal pay for equal work throughout PMI worldwide,” said André Calantzopoulos, CEO of PMI. “We need to use this moment to celebrate and continue building an inclusive, gender-balanced organization as we deliver upon our transformation and a smoke-free future.”

Equal-Salary verifies that PMI pays all of its employees, in more than 90 countries worldwide, equally for equal work, regardless of gender, said Calantzopoulos. The process included a statistical analysis of all salaries of PMI staff worldwide and onsite audits of PMI country affiliates.

NAMES IN THE NEWS

T a d e u M a r r o c o , who has been Director, Group Transformation for British American Tobacco (BAT), has been named BAT Finance Director effective August 5. Marroco has been with BAT in Brazil for 26 years. He takes the place of Ben Stevens, who has retired. This appointment will follow by a few months the planned retirement of CEO Nicandro Durante in April. He will be succeeded by Jack Bowles.

Tadeu Marroco

UNITED KINGDOM

Menthol debate continues london—Regulators are yapping at the heels of tobacco manufacturers everywhere, and it would seem that British American Tobacco might be in more jeopardy than most.

How much damage, for instance, would the proposed U.S. ban on menthol cigarettes do, considering that BAT is the market leader in that segment?

“The regulations aren’t going to get in our way as much as people think,” said BAT’s chief operating officer, Nico Durante. “When menthol was banned in Canada in 2017, we didn’t see an impact in consumption.”

People just moved from menthol to non-menthol products, he said.

But that doesn’t mean BAT won’t oppose a ban on menthol in the U.S. or anywhere else.

“We don’t see any scientific research so far that proves (banning mentholated cigarettes) reduces youth consumption or reduces uptake of cigarettes to youngsters,” Durante said. “So we are going to challenge.”

BAT’s menthol brands account for about 30 percent of the U.S. market.

Jack Bowles

Nicandro Durante

Mark Williamson will surrender his position as non-executive chairman of Imperial Brands soon, as a result of a government agency’s ruling that public companies must explain if a board chairperson has remained unchanged for more than nine years. Williamson will stay on until a successor is named.

Earlier, David Haines, Imperial Brands non-executive director, left the board following his appointment as chief executive of Upfield Group of Amsterdam.

He was succeeded as chairman of the Remuneration Committee by Malcolm Wyman, who will also remain Senior Independent Director. A former CFO of SAB Miller plc, with responsibility for the group’s financial operations, corporate finance and development and group strategy, Wyman was appointed NonExecutive Director in October 2011.

Malcolm Wyman

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ANALYSIS

Altria vs Juul

A David and Goliath Case Study The lessons to be learned by cigarette companies seeking e-cig acquisitions. By Bob Crew, London Correspondent

W

hen Altria Group’s investment i n t he e - c iga re t te manufacturer Juul was announced on December 20, the price was almost three times more than the one that had been rumored since November. That made it one of the biggest financial turnarounds in tobacco industry history and an excellent Christmas present indeed for everyone connected with Juul!

There really is a David and Goliath case study here that should be useful for all others contemplating mergers and acquisitions in the tobacco industry.

What looks like a happy and well-deserved £12.8 billion Christmas present for Juul is now in the Altria bag, and Juul is all set to become a new-look Altria/Philip Morris company.

One step ahead of FDA Ironically, the investment came hot on the heels of the U.S. Food and Drug Administration’s recommended “sweeping measures” to crack down on what it referred to as an “epidemic” of underage vaping.

Juul took forceful action to deflect criticism in this area, and indeed it perhaps has provided a model for other e-cig providers, the most important

lesson being to unambiguously crack down on under-age vaping in order to deflect negative attention from governments and health authorities.

David wins the match Whatever the exact numbers, it seems that David came out on top, with massively more money in its smaller pockets while giving far less control than Goliath wanted (at one stage Altria was saying that there would be no deal unless it had “a clear pathway” to control).

Of course, financial analysts are still looking as closely as they can at sales data for slips and shifts in the market.

Bonnie Herzog, analyst at Wells Fargo, reportedly wrote last November that she was “disappointed and somewhat mystified” by the 8.7 percent decline in the cigarette volumes reported in her latest weekly data from Nielsen (in November 2018). Up to that point, trends for the Marlboro brand appeared to be stabilizing, she reckoned at the time.

Ironically, the investment came hot on the heels of the U.S. Food and Drug Administration’s recommended “sweeping measures” to crack down on what it referred to as an “epidemic” of underage vaping.

Specifically, Juul moved swiftly to get ahead of the expected FDA action on e-cigarettes, by pulling the sale of flavors from its nicotine liquids at convenience stores. It also shut down its social media accounts and brought in Bluetooth-based technology to help track where its devices are sold. As a result, Juul seems to have earned a clean bill of health, as it were (in an otherwise allegedly unhealthy market.)

It was widely reported in the U.S. and British press last year that Altria wanted “a clear path to control” of Juul.

But we see now that there has been a climb down from that perch and Altria has settled for 35 percent of Juul, which may or may not be regarded as a step along a longer path of control!

Outside reaction The response to the sale by individuals in the industry was almost universally positive. One example: Chris Howard, general counsel for the vaping products company E-Alternative Solutions, told Wired magazine that the deal will be a big help to Altria because its own cigarette alternatives were not successes. “If history is any guide, Altria will one day complete the acquisition. Cigarettes may go away, but Altria won’t.”

But the organizations that don’t like most of what the tobacco industry does don’t like this. A typical response came from the c.e.o. of the American advocacy group Truth Initiative, Robin Koval.

“Juul partnering with Altria, maker of

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Altria’s Cannabinoid Investment Juul wasn’t the only purchase Altria announced in December. It also initiated a USD $1.8 billion investment (C$2.4 billion) in the Canadian cannabinoid company Cronos Group Inc., which was finalized in early March.

Altria now owns an approximate 45 percent economic and voting interest in Cronos, with a warrant to acquire an additional 10 percent of ownership, exercisable over the next four years.

Under the terms of the transaction, Altria nominated four directors who have since taken a place on Cronos Group’s seven-member board: Kevin C. Crosthwaite, Jr., Murray R. Garnick, Bruce A. Gates and Bronwen Evans.

“We’re excited to finalize our investment in Cronos Group and to support their talented team,” said Howard Willard, Altria’s chairman and chief executive officer. “Cronos Group is our exclusive partner in the emerging global cannabis category and represents an exciting new growth opportunity for Altria.”

The c.e.o. of Cronos expects the involvement of Altria to lead to significant growth and value creation for his company. Mike Gorenstein, said in a statement, “Altria’s investment and the services they will provide to Cronos Group will enhance our financial resources and allow us to expand our product development and commercialization capabilities.”

Regulatory expertise will also be a valuable contribution, he said. “[It will] better position Cronos Group to compete, scale and lead the rapidly growing global cannabis industry.” Cronos brands include Peace Naturals, Cove, and Spinach.

Well done indeed to the former e-cig startup that has swiftly and spectacularly grabbed three quarters of the U.S. vaping market. Well done, too, to Altria, for playing a canny and cunning hand and getting what it wanted. the nation’s number one cigarette brand Marlboro, and adjudicated racketeers, proves they are not in the business of saving lives and never have been.”

And this author’s reaction to this complex business deal? Well done indeed, I say to the former e-cig startup

that has swiftly and spectacularly grabbed three quarters of the U.S. vaping market since its launch in 2015.

Well done, too, to Altria, for playing a canny and cunning hand and getting what it wanted, albeit not as cheaply as it had reportedly hoped.

MARCH 2019 TOBACCO INTERNATIONAL

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FILTERS Does a longer filter mean less tobacco in the cigarette? That’s been a contention of some manufacturers of recessed filter cigarettes.

Recess Filters Their Place in the History— and Future—of Cigarettes

Recessed filters will help manufacturers differentiate their offerings and create their own brand identities.

By Patrick Meredith, Strategy & Business Development Director, Essentra

C

igarette filters have changed dramatically since the first filter was created by inventor Boris Aivaz in 1924. Like any industry, changes in manufacture, the materials used and the offerings available have all been heavily influenced by consumer tastes, technology and regulation.

As the market changed and trends began to emerge, manufacturers had to adapt accordingly, and their adaptation lead to the introduction of filters in different sizes, flavors, materials and tobacco concentration.

The first filters introduced to the market were made of crepe paper, with some variants including cellulose wadding. The initial uptake however was relatively slow as very few machines could produce cigarettes with filtered tips included.

This difficulty in manufacturing meant that cigarettes with filters were considered as luxury items until 1935, when British company Molins introduced the first filter-cigarette combining machine.

At the same time, doctors and re-

searchers began to find evidence of a link between smoking and lung diseases. This led to an increase in demand for filtered cigarettes as they were considered to have less impact on the consumer’s health: If the cigarettes remained the same length, less tobacco was used and thus less tar was delivered to the consumer.

Since the early 1960s, when advanced and efficient production machinery made filtered cigarettes a competitive product on the market, filtered cigarettes have come to dominate the market.

Cigarettes with filters were favored by manufacturers as they were cheaper to make–paper and cellulose acetate are both less expensive than tobacco.

Also, filters provided manufacturers the opportunity to innovate and widen their portfolios. Advances in technology and machinery led to the creation of more complex and adventurous filters, offering customers new sensations and experiences when smoking.

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FILTERS PMI’s ‘Parliament’ brand has been one of the leaders in this category due to its distinctive recessed paper filters. The recess at the mouth end was thought to prevent tar from contacting the smoker’s mouth and therefore provide a better and purer taste. As the only brand with a recessed filter, Parliament was able to create a strong brand identity and gained a large loyal audience.

Recessed filters today Today, Parliament still dominates, but there are many brands that have employed the use a of a recessed filter to add value to their offerings. As smokers become more demanding with their tastes, and as manufacturers are more limited due to stricter legislation and

regulation, brand and product differentiation as can be achieved with filters is now more important than ever.

Recessed filters have evolved since their inception, with numerous varieties now on the market. From original recessed filters to ones with segments, the market now caters to multiple tastes.

Essentra, the leading global supplier of specialty filters and scientific services, focuses on creating new and innovative filters to support brands and create their identities. Essentra has a wide range of products like this, including its Recess filter, its Smooth Core Recess filter and its Super Slim Recess filter.

Its original recessed filter, The Recess, comprises of one or two segments with a recess at the mouth end. It has

Inset: Recessed filters still find favor. When RJ Reynolds introduced Camel White in 2015, the brand featured a setback filter.

“Tobacco tastes best when the filter’s recessed?” That’s what advertisements for the Parliament brand claimed in the 1950s. They also suggested that the recessed filter prevents tar from making contact with the smoker’s mouth. “Only the flavor touches your lips,” one ad said.

flexibility that allows a wide variety of segments to be incorporated, including capsules or carbon.

Typically, the single filter and mouth segment of the dual filter consists of high-quality crimped cellulose acetate. The recess however is created using a stiff outer plug wrap which is longer than the segments. This can be either standard or porous depending on ventilation requirements and can be colored or made in a slimmer variety to add further brand differentiation. As there is no cellulose acetate tow in the recess section, there is a material saving compared to tube segment filters.

The Smooth Core Recess filter is the most innovative of Essentra’s recessed filters and includes state-of-theart, high-impact and patent-pending technology. It consists of firmly bonded crimped cellulose acetate fibers: A precise quantity of activated carbon is positioned at the center in a distinctive pod shape via injection technology.

This delivers the smoother, cooler taste of a carbon cigarette.

Overall, recessed filters have resurged in popularity in recent years, particularly as innovative variations continue to appear in the market. It is important, now more than ever, that research and development continue to create more interesting filters as the market becomes increasingly constrained by regulation and legislation.

For example, a ban on cigarettes containing certain flavorings authorized by the Family Smoking Prevention and Tobacco Control Act, has already gone into effect in the U.S. aimed at discouraging younger children from smoking.

Furthermore, plain packaging is beginning to become standard practice in many countries across the globe. This means that manufacturers must turn to the filters and their construction to differentiate their offerings and create their own brand identities—such as through a recess.

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EQUIPMENT Cold Plasma Treatment (CPT) is an innovative technology used for industrial air and gas treatment that eliminates odor molecules.

caption here caption here

A Solution for Industrial Odor Control Called ‘COPLAS Clean,’ it is an advanced technology for industrial air and gas treatment. Staff Report

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ontrolling odors is becoming increasingly important. On the one hand, strict laws on odor emissions are being issued in more and more countries and jurisdictions.

At the same lime, it has also become easier for residents to file complaints with local authorities, leading to stricter terms and controls on the odor emissions of manufacturers who are, in turn, having to invest more in special Tec combustion or scrubbing all have distinct disadvantages for plant operators.

German filtration technology spe-

cialist Riedel filtertechnik has developed a solution for industrial odor control designed especially for the modern manufacturer, says Lars Kuekenshoener, Product Manager at Riedel. “Called ‘COPLAS clean,’ it is an advanced technology for industrial air and gas treatment. It is flexible, modular and uses no water or chemicals.”

Some compounds have such low odor detection thresholds that people would smell them even when a single droplet is mixed with the water of an Olympic swimming pool,” Kuekenshoener muses.

“The exhaust of a tobacco manufacturer does not only consist of a single compound,” Kuekenshoener says. “It is, rather, a cocktail of hundreds of different compounds in the lower points per million or even points per billion range that mix to finally create a specific smell.”

Traditional technical solutions for odor control, such as bio filtration, thermal post-combustion or scrubbing all have distinct disadvantages for plant operators.

“They either have a large footprint; they consume significant amounts of water, chemicals and gas; and they often produce and/or consume a lot of waste,” he says. “At Riedel, our intention was to develop a solution that provides maximum odor reduction without the need for water and chemicals or the production of waste.”

The result is the COPLAS clean technology, which Riedel says is already working to reduce industrial odors at customer sites.

“COPLAS clean utilizes the effect of cold plasma for creating reactive oxygen species that can eliminate odor emissions simply through the application of energy,” says Kuekenshoener.

“It is not directly installed in the exhaust airstream, but in a bypass which is connected to the ducting with a custom-designed T-adapter.”

Essentially, the exhaust air is then treated with plasma-enriched air so that organic pollutants are oxidized, says Kuekenshoener.

“Ambient air, which consists of oxygen, enters the Plasma Reactor Cylinders whereby highly Reactive Oxygen Species are formed. These radicals are injected into the exhaust air stream for high-speed oxidation and odor abatement without the use of any water, chemicals or waste.”

20 TOBACCO INTERNATIONAL MARCH 2019 TI_Mar19_PG_01-32.indd 20

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EQUIPMENT Riedel’s COPLAS clean mobile unit.

Because of its small footprint on the factory floor and its modular design, says Kuekenshoener, the COPLAS clean technology can easily be integrated into existing production processes and can therefore overcome the disadvantages of traditional odor control systems.”

The technology has also been designed with flexibility in mind. Factory managers can achieve not only easy integration at existing plants, but also adaptability to production-related fluctuations in the volume of airflow that needs to be treated.

Isatec LTD_BG_2019 12/11/18 4:49 PM Page 1 In describing the system’s modular performance, Kueken-

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shoener explains that the heart of the COPLAS clean system are specially designed Plasma Reactor Cylinders.

Flexibility and modularity are two key requirements of manufacturers in today’s tobacco industry overcoming the disadvantages of traditional odor control systems.

The history of the general principle of cold-plasma goes back a little more than 20 years. Today, systems and technologies that utilize cold plasma are in use in a number of different industries, such as for the development of medical devices, but also solutions for exhaust treatment. Lars Kuekenshoener and his colleagues at Riedel Filtertechnik have now harnessed the technology for tobacco. Kuekenshoener “It is important to remember,” he began, “that the term cold-plasma only describes a plasma state that has certain physical characteristics. But it does not stand for a specific quality.”

A project team with experts from different disciplines was formed for analyzing the most important process parameters and for identifying suitable components for the system.

“In addition to the engineers here at Riedel, the team was joined by an internationally recognized expert,” says Kuekenshoener. “In effect, it was the combining of competences and putting together the right team that enabled us to develop and create a next-generation cold plasma system.”

Kuekenshoener is proud, for instance, that the company was able to increase the plasma discharge frequency from 400 Hz to 30.000 Hz. “This enabled us to create radicals that are more reactive and to achieve a more energy efficient odor reduction capacity per kW.” He concludes that the COPLAS clean system “provides advantages in terms of safety and handling; but also in terms of flexibility, efficiency and uptime when compared to old generation plasma technologies.”

Riedel Filtertechnik GmbH, Westring 83, D-33818 Leopoldshöhe, Germany, Tel: +49 5202 992-0, Fax: +49 5202 992-150, Web: riedel-filtertechnik.com.

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12/11/18 4:55 PM

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A Passion For Excellence

FCV BURLEY ORIENTAL

Finest leaves for perfect blends

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TI JanFeb19•Full•Star.indd 1

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U.S. LEAF The demand for U.S. burley continues to decline each year as smoking numbers go down and cigarette manufacturers maintain their use of imported burley tobacco.

There continues to be a need for U.S. burley, but growers may have to adapt to new methods to meet those requirements. That could mean growing less tobacco with improved yields and greater efficiency.

Boxes of burley tobacco await sale at the BTGCA warehouse in Cynthiana, Ky.

The Outlook for American Tobacco is Grim,

But Grower Cooperatives May Lead to Better Days

By Steve Pratt, General Manager, Burley Tobacco Growers Cooperative Association

T

he 2018 tobacco season is finally gone, and most growers are glad to see it go.

Due to heavy rainfall, the burley tobacco crop last year has been predicted to be the lowest in produc-

tion on record since records have been kept.

Planning for the 2019 crop has started with more rain so far. Still, there is lots of hope that this season will be better.

The part cooperatives play The Burley Tobacco Growers Cooperative Association (BTGCA) began operating in 1922. We purchase burley tobacco directly from our grower members through marketing contracts and process it ready to sell.

We offer it for sale worldwide: To facilitate that, the association maintains an inventory of currently available burley lots in its warehouses where interested buyers can easily access it.

To ensure consistent quality of its merchandise, BTGCA employs a tobacco grader with over 40 years of experience. He is responsible for purchasing leaf from our association members, and he also oversees the processing.

Certified processing facilities and grading labs are used, after which the ready-for-sale tobacco is stored in one of the association’s warehouses until it attracts a buyer.

All of BTGCA’s American growers are trained to utilize good agricultural practices that provide worker safety, protect the environment and allow traceability from the farm to the consumer.

In addition, BTGCA supports its growers by working with industry leaders, research universities, and elected officials to improve burley production.

We offer scholarships each year to students with priority given to those with tobacco backgrounds.

24 TOBACCO INTERNATIONAL MARCH 2019 TI_Mar19_PG_01-32.indd 24

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The overall goal BTGCA does all of this to achieve our overall goals: • To promote, foster and encourage the business of marketing tobacco; • To minimize speculation and waste in its production and marketing; • To stabilize tobacco markets, and • To handle cooperatively and collectively the problems of the tobacco grower.

Could hemp help?

Several grower members of the cooperative have turned to hemp as an alternate crop with the latest farm bill removing it from the controlled substance list.

Hemp farmers will now be able to buy crop insurance, apply for loans and grants, and write off their business expenses on their taxes like any other farmer.

In addition to legalizing the growth and production of domestic hemp, this new law gives each state the opportunity to have oversight responsibility.

And hemp farmers and researchers will now be eligible for competitive federal grants as well.

Tobacco companies have begun investing in the hemp, vaping and cannabis industries.

But burley tobacco continues to be a viable crop in the world market, one that contributes to the global economy for the farmers who continue to grow it and supports many farm families.

The grower cooperatives in the United States store tobacco their grower members can’t immediately sell in facilities like this BTGCA warehouse in Cynthiana, Ky.

MARCH 2019 TOBACCO INTERNATIONAL

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U.S. LEAF

The window of opportunity got narrower this spring for manufacturers of tobacco machinery. Randy Watkins (center) of Granville Equipment of Oxford, N.C., found it a challenge to make sales to farmers at the Southern Farm Show in Raleigh in January.

26 TOBACCO INTERNATIONAL MARCH 2019 TI_Mar19_PG_01-32.indd 26

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American Leaf Growers Reel from Bad News The crisis that is coming on Tobacco Road.

By Christopher Bickers, Editor

A

s the 2019 planting season approached, American tobacco farmers had to face the bitter possibility that their place in the world tobacco economy might be about to fall precipitously.

At the annual meeting of the Tobacco Growers Association of North Carolina, President Steve Griffin lamented, “The harsh reality, as we begin 2019, is that we are an industry in crisis!”

Farmer price stagnation, international competition, negative consumer trends and the consolidation of tobacco companies are all factors that have over the last decade changed the world of the tobacco farmer, said Darrell Varner of Versailles, Ky., the farmer president of the Council for Burley Tobacco. “Add to that list challenges with weather, trade and labor; and it is easy to see why all tobacco is really an industry in crisis.”

There will be an organized effort to

seek relief wherever relief can be obtained.

“The Council is working across state lines to strengthen alliances with other tobacco organizations, including the Tobacco Growers Association of North Carolina and the Burley Stabilization Corporation,” said Varner. “We all realize that there is strength in numbers, and if we are the voices for our grower members, it is important for all tobacco growers—burley, flue-cured and dark—to work together.”

Flue-cured growers had taken an even bigger hit than burley growers thanks to a purely political development: When President Trump had instituted punitive tariffs on China last year because of what he considered unfair trade practice, the Chinese responded by cancelling its orders from the 2018 crop. It was hoped right up till press time that they might come back

with orders from the 2019 crop. But none had been revealed by mid-March.

The flue-cured cooperative which has sold much of the American tobacco that has gone to China in the last 10 years, gave in to reality and cut its contract volume to farmers by 80 and closed two of its six marketing centers, in Smithfield, N.C., and La Crosse, Va. The marketing situation for tobacco has gotten so bad, even the dark growers have taken a hit. “A lot of farmers are getting cuts in the 10 to 20 percent range,” said Andy Bailey, Extension dark tobacco specialist for Kentucky and Tennessee. “I have heard of a few who have gotten 100 percent cuts, particularly with dark air-cured tobacco.”

The dark market depends on sales of snuff products, and the snuff market has been leveling off after years of growth.

“Even though we had a good crop in 2018, the cut in acreage [for 2019] appears substantial.”

This came as quite a shock to growers. “It wasn’t the best crop we’ve ever had, but it was definitely above average.

But very little overage was bought at any price by anyone,” Bailey said.

Charting a new course—Darrell Varner (red shirt), presides over a meeting of the Council for Burley Tobacco. At left is Kara Keeton, director of the council. At far right is Daniel Green, c.e.o. of Burley Stabilization Corporation.

MARCH 2019 TOBACCO INTERNATIONAL

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LEAF NEWS MALAWI

Volume Up Two Percent lilongwe—The

volume of the Malawi crop currently on its way to market has been estimated at a volume of 206 million kilograms.

That is two percent more than the 202 million kg that were sold last year, according to Malawi’s Tobacco Control Commission preliminary report.

That level of production, if achieved, would surpass the buyers’ target demand of 152 million kilograms by 35 percent.

UNITED STATES

First Leaf Forecast for 2019 richmond, virginia—Universal

Leaf issued its first estimates of world production of flue-cured and burley for the next season in February.

Flue-Cured: World production is projected 3.730 million green kilograms (down less than one percent from 2018), with Brazil pegged at 600 million green kilograms (up five from percent from 2019) and with the United States at 155 million green kilograms (up 12.9 percent from 2019.

Burley: World production is estimated at 593 million green kilograms (up 0.5 percent), with Brazil projected at 70 million green kilograms (up 18.1 percent) and the United States 55 million green kilograms (up 21.8 per cent).

ZIMBABWE

Currency Chaos Clouds Leaf Market Prospects harare —In

MALAWI

Grower Leader to Government: Curb Tobacco Smuggling blantyre—Improved

security at Malawi’s borders to help stop leaf tobacco smuggling would improve returns for the country’s leaf producers, said Kalima Banda, the president of the Tobacco Association of Malawi, in mid-February.

“Curbing tobacco smuggling would ensure that Malawian tobacco growers were rewarded for their hard work,” said Banda. “The government should put in place systematic measures to control tobacco [smuggling].”

He also provided some marketing advice for growers: Don’t sell to middlemen. Instead, wait and sell on the auction f loors, where you are likely to get better prices, he recommended.

Banda

“Curbing tobacco smuggling would ensure that Malawian tobacco growers were rewarded for their hard work. The government should put in place systematic measures to control tobacco [smuggling].”

late February, after considerable controversy and with less than a month before the for the 2018-19 crop —Kalima Banda, President, TAMA market opened, the Reserve Bank of Zimbabwe (RBZ) ruled that the country’s tobacco growers will be paid half the sales price of their crop in foreign currency with the other The 50 percent figure represented a compromise of sorts IndependentLeafTobacco_BG_19 11/02/18 12:00 PM Page 1 half electronically transferred into their bank accounts. since the governor of the bank had originally proposed only 30 percent.

But growers were apparently none too cheered about how the negotiations had turned out, since credited 50 percent will be paid in a quasi currency of low value “Real Time Gross Settlement (RTGS)” dollars.

“Selling in RTGS dollars will mean huge losses for us,” tobacco farmer Denford Mutwiwa of Headlands told never be able to recover from those losses as farmers. We have already made losses going into this year’s marketing season.”

2404B Montgomery Dr. He estimated expenditures to produce this crop and get Wilson, NC 27893 it to market at $18,000 per hectare, much more than the last 252-237-9600 Fax: 252-237-9601 crop. “The cost before the price madness of last year was RS@iltob.com around $8,000 per hectare,” he told the Standard. Mutwiwa expects a yield of 3.5 tons of flue-cured per hectare.

28 TOBACCO INTERNATIONAL MARCH 2019

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LEAF NEWS reached 170,169 farmers compared to 118,142 last year, with 41,552 of the registrants new.

A Late Opening for Auctions? har ar e —Auction

Leaf recently cured is prepared for market at a Zimbabwe warehouse. (File photo courtesy TIMB Zimbabwe).

Tobacco registrations continue to increase

this season continues to increase, according to the country’s the Tobacco harare —The number of Zimbabwean I ndu s t r y a nd Ma rke t i ng B oa rd .

HTMS-HAMSHIRE TOBACCO_TI_July13 4:49 1 farmers registering to grow tobacco 8/9/13 Through thePMendPage of February, it had

markets were expected to open on March 21. The government and national bank—eager for foreign currency inflows to provide more liquidity to the Zimbabwe’s economy—had wanted an earlier date, but grower leaders apparently changed authority’s minds.

“We, as tobacco associations, proposed that this year’s tobacco marketing season be opened on March 21,” said Zimbabwe Commercial Farmers’ Union director Jeremiah Tevera.

That date is comparatively early relative to past seasons, but it would allow farmers to be done with logistical arrangements before the opening, said Tevera.

30 TOBACCO INTERNATIONAL MARCH 2019 TI_Mar19_PG_01-32.indd 30

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84 EDITION

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2019 BUYERS’ GUIDE & GLOBAL DIRECTORY

A Race to the Future

Product Manufacturers

Ferrari Teams with PMI in a Global Communication Initiative

Exporters & Importers Which Way Will the

Equipment & Machinery

Indonesian Tobacco Market Go?

Supplies & Services Leaf Dealers, Growers & Processors THE MAGICAL WORLD OF CIGAR LEAF

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CIVIL UNREST RATTLES NICARAGUA TOBACCO SECTOR

Associations

HURRICANE FLORENCE SAVAGES US FLUE-CURED

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IMPERIAL BRANDS LOOK TO A FUTURE BASED ON NGP

DESTRUCTIVE HURRICANES THREATEN U.S. LEAF SUPPLY

DODGING FDA’S REGULATORY BULLET ON VAPE PRODUCTS

THE QUEST FOR TESTING HEAT-NOT-BURN PRODUCTS

ZYN IN THE UNITED STATES: BETTER RESULTS THAN EXPECTED

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April 8–10, 2019 TMA’s 104th Annual Meeting & Conference Marriott Fairview Park. Falls Church, Virginia, USA. Contact: Tobacco Merchants Association, Web: tma.org.

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• HOW FAR WILL THE U.S. BURLEY MARKET FALL? • THE FUTURE OF NICOTINE COULD BE TOBACCO FREE • WHICH WAY ALLIANCE ONE?

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AUSTRIA SCRAPS ITS BAN ON SMOKING IN BARS & RESTAURANTS

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A NORMALIZING SEASON FOR BRAZILIAN TOBACCO

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ADVERTISER INDEX Airco DIET.................................................................. 15

Isatec Ltd. .................................................................. 22

Aiger International....................................................... C2

Riedel Filtertechnik..................................................... 25

delfort Group....................................................... 7, 9, 11

Star Agritech International .......................................... 23

BMJ........................................................................... 4,5

SWM International....................................................... 29

Boegli-Gravures SA..................................................... 21

Tobacco International 2020 Buyers Guide................... 31

Burley Tobacco Growers Cooperative............................ 3

TSAL Ltd. (Tobacco Solutions Asia Limited) ................ 17

Hampshire Tobacco Machinery Services...................... 30

U.S. Tobacco Cooperative, Inc. ................................... 13

Independent Leaf Tobacco Company........................... 28

Universal Leaf............................................................. 19

32 TOBACCO INTERNATIONAL MARCH 2019 TI_Mar19_PG_01-32.indd 32

4/3/19 4:42 PM

THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 1, 2019

21ST HABANOS FESTIVAL

Habanos S.A. celebrates Havana’s 500th Anniversary, and the 20th Anniversary of San Cristóbal de La Habana at the 2019 Habanos Festival.

TPI_Q1_2019_CVR.indd 1

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SS•JUN18•Full•DurfortHolding.indd 1

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{Contents}

TOBACCO PRODUCTS INTERNATIONAL » Q1 2019

6

{ EDITORIAL } E. EDWARD “TED” HOYT III Editor ROBERT M. LOCKWOOD Publisher & President { ART & PRODUCTION } MELINDA AYALA Production Coordinator ROXANNE CORDOVA MELENDEZ Accountant { ADVERTISING REPRESENTATIVES }

Robert M. Lockwood tel: + 1-212-391-2060, x109 email: robert@lockwoodpublications.com

14

6

all regions

special sales representative

George E. Lockwood tel: + 1-413-775-0005 fax: + 1-413-775-9010 email: lockwood.george@gmail.com Tobacco Products International Lockwood Trade Journal Co. Inc., 3743 Crescent Street Second Floor Long Island City, New York 11101 U.S.A. Tel: +1 (212) 391-2060

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{ HABANOS FESTIVAL 2019 }

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DEPARTMENTS Industry News ........................................4 Brand News........................................... 18 Showcase............................................. 20

Roll 4 You .................................. C2 Durfort Holdings ......................... 13

18

{ MANUFACTURER SPOTLIGHT }

14 Making History: Marsh Wheeling Stogies Return Several history-rooted U.S. cigar forces have come together to bring the storied Marsh Wheeling Stogies back to market. » BY FRANK SELTZER

AD INDEX

20

6 21st Habanos Festival: Celebrating Havana at 500 Invigorated by a 7 percent jump in Habanos sales in 2018, the 21st Festival del Habano honored the historic city from which the Habano takes its name » STAFF REPORT

Tobacco Products INTERNATIONAL

Tobacco Products International

TPI_Q1-2019_PG 01-20.indd 3

TPI 3

4/3/19 6:12 AM

{Industry News} Vaporized Stores Rebrand as VPZ In a bid to “stand out from the crowd” and position itself for expansion into Europe, the UK’s leading vaping specialist, Vaporized, has rebranded to VPZ, unveiling a new look for its stores.

“We will continue to offer our sup-

port and incredible range of products to customers across the UK,” said the company in statement. “However, we also have huge plans for growth and VPZ is a brand that can carry off our ambitious international expansion

New Habanos Terrace Debuts in Hotel Blu Plaza, Larnaca, Cyprus

vision. The name is transferable outside the UK and is easily recognizable anywhere in the world.”

The Phoenicia Company T.A.A Cyprus, exclusive distributor of Habanos S.A. for the Middle East and Africa, together with its sub-distributor Phoenicia Fereos, has opened a new Habanos Terrace. The lounge is located inside the Hotel Blu Plaza, a luxurious hotel located in the center of the city of Larnaca, Cyprus.

This special space, designed for the enjoyment of a good Habano, has been

appointed with elegant decor featuring typical Cuban style. A walk-in humidor is stocked with a wide representation of brands and vitolas most appreciated by Habano followers, kept under precise climatic control design expressly for the preservation of cigars.

The new VPZ store on Front Street, Chester-LeStreet, U.K. opened in January.

Two Cigar House Fortuna Shops in Kiev Earn Habanos Specialist Shops Status

company founded in 2012, the rebrand-

The chain of stores Cigar House Fortuna has unveiled two new Habanos special-

categories such as CBD ranges, new

ist shops in Kiev, Ukraine. Both locations were founded in 2003, feature elegant

nicotine products, and other emerging

designs, and are staffed by highly knowledgeable experts with a mastery of Habanos

sectors that fit with its brand, but do

products. One of the shops is located at 10 Basseinaya St. (below left) and covers

not necessarily fit with a vaping-only

According to the family-owned ing will allow it to add other product

about 50m . The other location is at 33/35, Vladimirskaya St. (below right), and cover

name such as Vaporized. Currently,

about 100m2 of retail spacer. Both locations feature 12 m2 walk-in humidors, and

the company operates over 120 stores

have since their inception sold a wide range of Habanos’s main brands and vitolas.

throughout the UK, where it is opening

2

one store a week on pace to tripling it store base to 300 locations by 2021.

The company’s first expansion

market could be Spain, where the firm is already testing its products in conjunction with retailers.

TPI 4

Q1 2019

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Karelia Tobacco Inks Deal to Distribute Villiger Sohne Products in Greece kalamata , greece —Karelia

Tobacco Company, Greece’s largest manufacturer and

In Memoriam

Simon Chase, 74

Simon Chase, the former Marketing

distributor of quality tobacco products, has announced a strategic partnership with

Director of London-based cigar

Villiger Sohne AG, a leading manufacturer of premium

importer Hunters & Frankau Limited

cigars based in Switzerland, to exclusively distribute an

and a world renowned expert on

assortment of Villiger brands in Greece. The new ven-

Cuban cigars, passed away March 11,

ture enhances further the close co-operation between

2019, at age 74 following a long illness.

the two companies, which started when Villiger was

chosen as the promotional agent for the Karelia brands in the French market. The

ing agency veteran and novice cigar

deal became effective as January 1st, 2019.

smoker when he joined Hunters &

Karelia Tobacco’s Commercial Director for Greece, John Labidis, said, “Villiger

Frankau in 1977 as its first marketing

is one of the world’s most highly regarded manufacturers of premium cigars.

expert; at the time the firm was one

Together, our companies comprise two of the world’s largest and oldest tobacco

of four importers of Cuban cigars.

manufacturers with a rich and longstanding history in the tobacco industry, both

He went on to serve in this role for

having been established in 1888. We have always shared the same values and

35 years, and today the company is

passion for our business activities, always focusing on delivering unparalleled qual-

the U.K.’s leading independent cigar

ity products to our consumers. We look forward to working with the Villiger team

importer and exclusive U.K. distributor

to write the next chapter of our cooperation together.”

for all Havana cigars. Chase retired

from the firm in 2009, but continued

Gert Kamphuis, Senior V.P. Export of Villiger Sohne, added, “Karelia enjoys a

Chase was a 30-year advertis-

unique position in our industry as a company that has delivered exceptional finan-

to serve on the board of directors and

cial performance over the past decade, consistently demonstrating its ability to

hosted the annual charity auction at the

capitalize on opportunities for growth—both in Greece and in more than 65 inter-

annual Festival del Habano in Cuba.

national markets—with its portfolio of outstanding brands. Backed by the compa-

ny’s strong and effective distribution network, and its excellent reputation in the

tribution to the company and the fine

Greek market, we look forward to benefiting from Karelia’s extensive resources to

cigar industry was without equal,”

spread the Villiger experience to a larger audience.”

said the company in a statement. “Our

“[Simon’s] dedication and con-

thoughts and prayers are with Simon’s

Cubacigar Benelux takes Dutch Government to Court Over New Tobacco Packaging Laws overijse , netherlands —Cubacigar

family and his many friends around the world at this very difficult time.”

Benelux NV, the 100 percent subsidiary of

Habanos S.A. and the sole importer and distributor of all Cuban cigar brands for the Benelux countries, is suing the Dutch government, challenging packaging requirements that come into effect July 1 that the company says will render many Habanos products unsalable and others too costly to repackage to comply.

The latest packaging requirements are intended to prevent smoking among

young people, but according to Yuri Dijkstra, co-owner of the Casa del Habano in Almere, Netherlands, only adult enthusiasts are interested in exclusive Habanos products. The new laws ban embossing or glossy materials, and would require cigars to be repackaged from their original boxes. Special or limited edition of products are also banned. The Dutch market is too small for Habanos to create separate packaging, says Cubacigar. Yet, the relatively small Benelux is an important market for Cuba, fifth place in the world in terms of consumption of Cuban long fillers after Spain, France, Great Britain, and Switzerland.

Tobacco Products International

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PHOTOS COURTESY HABANOS S.A.

{ Habanos Festival 2019}

21st Habanos Festival:

Celebrating Havana at 500

Invigorated by a 7 percent jump in Habanos sales in 2018, the 21st Festival del Habano honored the historic city from which the Habano takes its name » STAFF REPORT

E

symbol of tradition and exclusivity—is closely tied to the city, from which it takes its name.

This close association extends all over the Cuban capital, with the footprint of the Habano felt in several conspicuous places around the city, so it was only fitting that Habanos S.A. would pay special tribute to Havana’s impressive five-century achievement by dedicating the festival’s welcome evening event to the city, while the San Cristóbal de La Habana brand—which is celebrating it

ach year, the Cuban capital of

other activities, seeks to open the world

own 20th anniversary since it debuted

Havana hosts the Habanos

of the Habano to guests who want to

with vitolas named after the city’s major

Festival, a week-long series of

experience first-hand every aspect of

Spanish-built fortresses—was the fea-

“the best tobacco in the world.”

tured cigar. The opening event took place

activities dedicated to “the knowledge and enjoyment of Habanos.” It is the

At this year’s 21st annual festi-

in the Antiguo Almacén de la Madera y

biggest international event drawing lov-

val—which was held February 18–22

el Tabaco in the city’s port, marked by a

ers of Cuban cigars from all corners of

and drew as many as 2,200 attend-

variety of performances from renowned

the world. A wide variety of events,

ees from 70 countries—the city itself

artists that enlivened the night.

such as the three gala evenings featur-

played a key theme: Havana is cel-

To commemorate the 500th anni-

ing renowned groups and musicians,

ebrating its 50 0th anniversar y this

versary of the city’s founding in 1519,

good food, and a broad spectrum of

year, and the history of the Habano—a

Habanos announced the release of the

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San Cristóbal de La Habana 1519,

market share, estimated at around

market in the countries it operates in,

a 57 ring gauge by 170 mm long lim-

70 percent in volume in the markets

officials stressed.

ited edition Habano. The vitola is a dou-

where we sell our brands,’ and esti-

Ranked by country, the five most

ble robusto bearing a factory name of

mated at about 80 percent by value.

important markets for Habanos, S.A. in

“Roque” and is only available in 500

The company says that a total of 450

terms of sales volume have been Spain,

specially designed humidors each con-

million premium cigars were sold

China, France, Germany, and Cuba. By

taining 100 cigars. The humidors were

worldwide last year.

region, Europe remains the primary mar-

designed and handcrafted by Cuban art-

Jointly-owned owned by the Cuban

ket for Habanos, with 53 percent of sales

ists from DECUBA Arte en Madera, uti-

government and Britain’s Imperial

by volume, followed by the Americas (18

lizing Cuban cedar and special Ocume

Brands, bearing responsibilit y for

percent), Asia Pacific (15 percent), and

plywood, and gold-plated reinforced

marketing and sales of Cuban cigars,

Africa and the Middle East (14 percent).

hinges and bolts.

Habanos, S.A. continues to maintain its

Leopoldo Cintra González, Comm-

leadership position in the premium cigar

ercial Vice President for Habanos S.A.,

H a b an o s als o ann o un c e d the San Cris tóbal de La Habana 20 Aniversario (52 ring gauge by 162 mm long), a production exclusive to the network of La Casa del Habano stores. The

Havana and the Habano

The Museo del Tabaco (Tobacco Museum) in the historic center of Old

cigars come in a custom dark-stained

Havana is an institution in constant motion. It not only captures the history of

treasure chest-styled box with domed

this product with its Protected Designation of Origin, here visitors can also find

lid and contrasting light wood accents.

everything related to the ritual enjoyed by good Habanos smokers.

During the International Seminar,

A nother represent ati on of

the festival also dedicated a master lec-

Habanos in Havana, is the San

ture to the city’s anniversary and its

Cristóbal de La Habana brand.

connection to the Habano, given by Dr.

Its vitola, Prado, owes its name to

Eusebio Leal Spengler, Historian of the

an emblematic avenue in the city—

city of Havana.

the boulevard that best preserves and recounts the history and splen-

Continued Global Growth for Habanos

dor of the architecture of the Cuban

Habanos, S.A., which exclusively mar-

capital. The Paseo del Prado is

kets 27 different brands of handmade,

home to well-known buildings, and

longfiller Habanos, kicked off the festival

among the highlights are the Gran

with a press conference led by Ernesto

Teatro de La Habana, inaugurated in

Gonzalez, Operational Marketing

1838, and Havana’s Capitol, built in

Manager, and Alejandro Fernandez

1929, and regarded as one of the six

Blanco, Deputy Manager, who jointly

most important palaces in the world.

announced that sales for 2018 grew by

7 percent compared to 2017, declaring

to the Habano are the emblematic

that the company registered a turnover

tobacco factories, where Cuban

of US$537 million last year.

cigar rollers make each Habano

totalmente a mano con tripa larga

“2 018 h as b e e n , o n c e a g ain ,

Other symbols directly related > An exclusive production of 500 humidors of San Cristóbal de La Habana 1519 (57 ring gauge x 170 mm length), specially designed to commemorate the city’s anniversary, was announced.

a successful year for the Habano,”

(totally handmade with long filler) in the most traditional way: the Real

reiterated Inocente Núñez and Luis

Fábrica de Tabacos Partagás, located in central Havana, is one of the

Sánchez-Harguindey Pardo de Vera,

oldest and most popular tobacco factories in the city. The Fábrica de Tabaco

C o - P residents of H ab anos, S . A .,

Torcido El Laguito is known as one of the most exclusive and most reserved

“because sales have continued grow-

factories for visitors. Lastly, the Real Fábrica de Tabaco Torcido La

ing in different markets, both in terms

Corona is famous for being one of the most unique and prominent buildings

of volume and value, while at the

in Cuba, thanks to its frame of iron and steel.

same time we have maintained our Tobacco Products International

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{Habanos Festival 2019}

Left: San Cristóbal de La Habana 1519, rolled with the brand’s signature soft-tomild taste, measures 57 ring gauge by 170mm long, and is presented in a special series of 500 humidors, each containing 100 cigars.

Above: The Hoyo de Monterrey Gran Reserva Double Coronas Cosecha 2013.

Below: At the 20th Festival in 2018, guests had the opportunity to visit plantations of the San Juan y Martinez municipality, including Rolando Pujol’s. This year, tours visited the Vuelta Abajo region in Pinar del Río.

and José María López Inchaurbe, Vice

its to the factories responsible for produc-

welcome evening, held in the Antiguo

President of Business Development,

ing this year’s biggest launches.

Almacén de la Madera y el Tabaco at

stated that “the great quality and exclu-

the Havana port, in particular which

sivity of the product, together with its

evenings of live music from renowned

unique origin, have transformed the

international artists, the finest food

An evening dedicated to the newly

Habano into a premium product which

available in Cuba, Habanos tastings, and

unveiled Hoyo de Monterrey Gran

is finding success all over the world.”

a wide range of libations from different

Reserva Double Coronas Cosecha

corners of the world.

2013 was held at the El L aguito

Celebrating Habanos, Old and New

Other highlights included three

truly kicked off the week’s festivities.

The opening of the 2019 Trade Fair

Reception Hall on Wednesday, Feb.

Attendees at the 21st Habanos Festival

marked the official start of the Festival

20th, with a cocktail dinner for 800

enjoyed a comprehensive five-day pro-

on Monday, 18th February. The Trade

guests. Habanos alternates between

gram full of activities designed to explore

Fair is the center of business network-

releasing a Reserva and a Gran Reserva

the origin, production, and various other

ing for professionals in the tobacco

(at least in recent years), selecting a

aspects of the Habanos culture. As in

industry worldwide, featuring exhibi-

single existing vitola from a single major

years past, the week was entirely devoted

tors from other luxury goods manufac-

brand, but rolling the cigar with high-

to the knowledge and enjoyment of

turers, as well as craftspeople, artists,

est grade tobaccos sourced entirely

Habanos and other exclusive products.

and manufacturers of smoking acces-

from Vuelta Abajo that have been aged

The Festival included tours of plantations

sories and gourmet products. This year

extra long—at least five years for Gran

in Vuelta Abajo in the Pinar del Río region,

there were 78 stands, with as many as

Reservas, and three years for Reservas.

considered to be the best land in the

227 exhibiting staffer from over a dozen

The release name includes the year of

world for growing tobacco, as well as vis-

countries represented. But it was the

the tobacco’s harvest (cosecha), and

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2019 Habanos Edición Limitadas

> At left, from top to bottom: The Edición Limitadas announced for 2019 all feature non-traditional, high-end lacquered packaging exclusive to these releases that are a significant departure from each brand’s regular presentation. They include: > Montecristo Supremos (55 x 130mm Robusto), factory name Montesco, in yellow-lacquered hinge-lid boxes of 25 cigars; > Allones No. 2 de Ramón Allones (52 x 140mm Robusto Extra), factory name Campana, in green-lacquered hinge-lid boxes of 10 cigars; > Quai D’Orsay Senadores (48 x 157mm Grand Corona), factory name Hermosos No. 2, in metallic bronze-lacquered slide-top boxes of 25.

the cigars feature both the brand’s stan-

In contrast, the Edición Limitadas

Montecristo Supremos (a 55 ring

dard band, as well as a second black-

are special vitolas that are not available

gauge by 130mm Robusto in 25-count

and-gold band bearing the initials GR

in a brand’s regular production portfo-

boxes ); Allones No. 2 de Ramón

for Grand Reserva ). Regardless of

lio, utilizing the highest grades of capa,

Allones ( a 52 x 14 0mm Robusto

brand, all Reservas and Gran Reservas

tripa, and capote (wrapper, filler, and

Extra in 10 -count boxes); and Quai

are presented in special gold-embossed

binder) that have been aged at least

D’Orsay Senadores (a 48 x 157mm

black lacquer quadrant-hinge boxes.

two years. Production of these releases

Grand Corona in 25-count boxes). All

This latest Gran Reserva turns to

is extremely limited. As is custom-

cigars double-banded with a secondary

the already iconic Hoyo de Monterrey

ary, Habanos S.A. announced three

Edición Limitada 2019 band.

Double Coronas vitola (49 ring gauge

Edición Limitadas this year, and for

by 194mm long), and is the first-ever

the first time introduced unique, high-

retail stores will be the exclusive sales

Gran Reserva for brand. They will be an

end boxes for each offering, differing

agents of the San Cristóbal de La

exclusive production of 5,000 numbered

significantly from each brand’s stan-

Habana 20 Aniversario, both the LCDH

boxes of 15 cigars.

dard presentation. For 2019, there is:

stores as well as the more numerous

While La Casa del Habano (LCDH)

Tobacco Products International

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{Habanos Festival 2019}

2019 La Casa del Habano & Habanos Specialists Exclusives

Above: Cohiba Novedosos LCDH Edition (50 ring gauge by 156mm long). Below: San Cristóbal de La Habana 20 Aniversario (52 ring gauge by 162 mm long).

Habanos Specialists (HS) will carry the

first Cohiba release exclusive to these

deluxe black lacquered box featuring a

upcoming Cohiba Novedosos, a 50 ring

dual retail channels, and will be double

stylized, deeply embossed interpretation

gauge by 156mm long parejo that joins

banded with the customary gold LCDH/

of the Cohiba graphic dot pattern.

the Cohiba catalogue as a permanent,

HS secondary band. The cigars will be

The 2019 Colec c ión Habanos

but limited distribution, vitola. It is the

presented in an exclusive 25-count

release is Trinidad Casilda, a 52 ring gauge by 185mm long parejo. It is the latest in Colección Habanos series which are presented in cedar cabinets of 20 cigars that resemble books. Only 2,000 boxes will be released.

In addition to the numerous special

and limited releases, Habanos S.A. also debuted several new regular production cigars which will be distributed to all authorized Habanos channels.

Celebrated at the closing gala

in honor of the 50th anniversary of its Above, right: The 2019 Colección Habanos release is Trinidad Casilda, the latest edition in this series of limited, numbered boxes themed to resemble books. Above, left: The Short de Punch is a short, large ring gauge regular production addition to the Punch marca, sold in 10-count boxes.

TPI 10

founding in 1969, the Trinidad brand will see three new regular production

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vitolas added this year. The first two are newcomers in the regular portfolio: Esmeralda (53 ring gauge by 145mm long “Dinoras”), named after one of the best-known streets in the city of Trinidad, and Media Luna (50 ring gauge by 115mm long “Marianas”), named after the architecturally significant Media Luna Hotel. The third—Topes (a 56 ring gauge by 125 mm long robusto gordo) was originally presented as the well-received Trinidad Topes Edición Limitada 2016, the first-ever 56 ring gauge in the Trinidad line, now returning as a regular production cigar. Like all Trinidads, all three cigars

Trinidad Builds Momentum

will have a pigtail cap, fall in the medium to medium-full range strength wise, and

Founded in 1969, the Trinidad brand for many years was only used as a gift from

are presented in classic varnished Semi Boite Nature (SBN) 12-count boxes.

the State of Cuba for high-ranking foreign dignitaries. Only since 1998 has the

New for Punch is a large ring gauge

brand been available to consumers worldwide, but in limited quantities, and only

addition, Short de Punch (50 ring gauge

in the Fundadores (40 ring gauge by 192mm Laguito Especial) vitola. Since then.

by 120mm), presented in Semi Boîte

it has continued to captivate demanding enthusiasts of the Habanos.

Nature boxes of 10 cigars.

The name of the brand is a tribute to the town of Santa Trinidad (Holy Trinity),

whose origin dates back to the 16th century on the island nation’s south coast,

Events to Teach, Entertain, Delight

which was declared a World Heritage site by UNESCO.

A favorite feature of every Habano

Festival is the opportunity for attendees

expanded its vitola range back in 2003 with the release of Reyes (40 x

and guests to try their hand at rolling a

110mm), Coloniales (44 x 123mm), and Robusto Extra (50 x 156mm, discon-

Habano on their own. This year, fearless

tinued in 2012) and introduced a much more modern image, reflecting the

delegates gathered around veteran cigar

brand’s “extraordinary” quality. Then in 2014, the Vigia vitola (54 ring gauge by

roller Miguel Barzaga and employees

110 mm long) was added to the range.

from the El Laguito, La Corona, and H.

Upmann factories to hand-roll a parejo

the range to seven vitolas total: Esmeralda (53 x 145mm), Media Luna (50 x

con apéndice (a straight-sided cigar

115mm) and Topes (56 x 125mm).

Still considered a young brand compared to other Habanos, Trinidad

For 2019, the addition of three new regular production vitolas will expand

with a twisted tip) from the Trinidad brand. Step by step, Barzaga showed

the Cohibas are rolled, and in La Corona.

fruits and aged silver rum, while the

an audience of “enthusiastic appren-

During the tours, visitors witnessed the

Habanos 500 cocktail came up with a

tices” how to carry through the entire

entire process of making the world’s top

complex fusion of Havana Club 7 Years

process of hand-rolling a Cuban cigar,

premium cigars.

that yielded coffee and tropical notes.

beginning with the stripping of the

leaves for the initial blend all the way to

sion was led by José Rafa Malem, pres-

companies made special presenta-

bunching and applying the wrapper.

ident of Cuba’s Bartender Association;

tions pairing Habanos with a variety of

Havana, which officially turns 500

Victor Aguilera, an expert from Casas

libations. Havana Club International,

years old later this year, is home to the

del Habano; and Orlando Blanco Blanco,

pair two different Rioja wines with

most important cigar factories in the

world Habanosommelier champion.

several Habanos; Cuba Ron paired

world where some of the finest premium

The featured cigar was an H. Upmann

Isla del Tesoro extra aged rum with

cigars are rolled by hand. This year, par-

Magnum 50 (50 ring gauge by 160mm

the Partagas Maduro No. 1; Bodegas

ticipants had the opportunity to tour two

long). The opening cocktail was the

Torres presented its Salmos 2015 and

iconic cigar factories: El Laguito, where

Habanos Tropical, a blend of tropical

Purgatori 2014 wines, two exquisite

A cocktail and Habano tasting ses-

In a separate session, three spirit

Tobacco Products International

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{Habanos Festival 2019}

Trinidad 50 Aniversario (59 ring gauge by 155 mm long) is the first figurado ever released in the Trinidad line. It features a special commemorative anniversary band and a first-ever foot band. The cigar is only available in 100 numbered humidors each containing 50 cigars, inspired by the emblematic, avant-garde Habana Libre Hotel, birthplace of the Trinidad brand. Humidor number one was sold at the festival’s Gala Night auction to Manu Harit from the United Kingdom (at right), for 300,000 euros. Six other one-of-kind humidors were also auctioned, raising a total of 1.5 million euros.

red wines that paired perfectly with the

brands, followed by a blindfolded tast-

Business category; and Cuba’s Justo

Montecristo Double Edmund.

ing session of robusto Habanos that

Emilio Luis Rodriquez, was the winner in

The preliminary round of the second

stretched out for 40 minutes and cut-

the Production category.

edition of the Habanos World Challenge

and-light shows and a pairing proposal.

kicked off at the start of the festival with

The challenge came to a close in a

most anticipated moments got under

the participation of five couples that

duel of knowledge between two finalist

way: the auction of handcrafted humi-

won classifier rounds in their respec-

teams: “Criollitas de La Habana,” made

dors, an event that has sold over a

tive countries. The teams hailed from

up of Mayli Mostaza and Daylin López de

hundred cigar cabinets worth over $15

Italy, Lebanon, Cyprus, the United Arab

Cuba, and “La Excepción,” consisting of

million since 1999, with all proceeds ben-

Emirates, and Cuba. Tasks included a

Italian participants Aurelio Tufano y Giulio

efiting the Cuban Public Health System.

30-minute theoretical exam in a bid to

Amaturo, which ultimately garnered

This year, seven humidors from Habano

identify several exclusive vitolas and

more points from the panel of judges to

brands San Cristobal de La Habana, H.

win the challenge.

Upmann, Hoyo de Monterrey, Romeo y

New this year was the addition of the Habanos World smart phone app, created to provide attendees a more “interactive” festival experience, including live notifications of events as they happened, the full program, streaming news, images of Habanos products, details on exclusive launches, full brand and much more.

TPI 12

Shortly before midnight, one of the

The closing Gala Evening, held on

Julieta, Montecristo, Trinidad, and Cohiba

Friday, February 22nd at the Pabexpo

went under the gavel, generating a grand

Fairgrounds, brought together 1,200

total of more than 1.5 million euros.

guests and served as the grand finale

The Festival wrapped up with a

to the festival and was dedicated to

concert headlined by Puerto Rican

the Trinidad brand’s 50th anniversary.

salsa singer Gilberto Santa Rosa, who

The Habanos Man of the Year

shared the limelight with such person-

Awards were held during the evening.

alities as Mexico’s Grammy Award win-

Zoe Nocedo, director of the Museum

ner Armando Manzanero; renowned

del Tabaco in Havana, received the prize

American of film and television music

in the Communication category; Gabriel

composer Charles Fox, and Cuban music

Estrada, owner of Cohiba Atmosphere

artists Haila Mompié, Adrián Berazaín,

in Buenos Aires, was awarded in the

and Waldo Mendoza.

TPI

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{ Manufacturer Spotlight} > Established in Wheeling, Virginia, U.S.A. in 1840 and relocated to Frankford, Indiana in 2001, production of Marsh Wheeling Stogies has now been restarted in the Dominican Republic, utilizing the same machinery that’s been in place for decades.

tysburg and during the U.S. Civil War, Francis Xavier Smith opened a factory in nearby Irishtown to supply soldiers with cigars, using Pennsylvania tobacco since the south controlled all the Virginia tobacco. By 1887, Smith moved to bigger quarters in McSherrystown and B.P also opened his factory there.

The Toppers and Smiths became very friendly and in the mid 1960s, with the U.S embargo against Cuban cutting off access Cuban tobacco, the Toppers switched from producing hand made long-fill “clear Havana” cigars utilizing 100 percent Cuban tobacco, to a short fill machine-made product. To do that, they moved their factory two blocks to Smith’s factory.

Today Craig Smith, the fifth gen-

eration running F.X. Smith’s Sons in McSherrystown, continues to make Topper cigars and helps Chris with distribution. Both men love the history of their products, but both knew there was one cigar that was an icon. It was the Marsh Wheeling Stogie. Founded in

Making History:

1840 by Mifflin Marsh, Marsh Wheeling

Marsh Wheeling Stogies Return

initially made cigars that were affordable for the average person. The company was located in Wheeling, which at that time was in Virginia—West Virginia didn’t split away as a separate state until the Civil War. Marsh made cigars that sold for less than a penny a piece.

Several history-rooted U.S. cigar forces have come together to bring the storied Marsh Wheeling Stogies back to market. » BY FRANK SELTZER

F

Marsh also was the first marketer in the cigar business, handing out free samples to Conestoga wagon drivers

or Chris Topper, family and history

that began in 1896 when B.P. Topper

on the National Road—which ran from

are everything. As the owner of

started his own line of cigars out of

Baltimore to Wheeling, connecting the

one of the oldest cigar companies

McSherrystown,

Top-

east coast with the Ohio River—and to

in the United States, Topper Cigars,

per had moved up to McSherrystown

captains of the river boats that dotted

Chris is working to ensure a part of

two years earlier from Maryland so he

the Ohio River. He then sold the rest to

America’s history continues.

could apprentice in a cigar factory be-

passengers of the boats and wagons.

Chris is the fourth generation of

fore opening his own place. McSher-

Toppers to run the cigar company

rystown is just a few miles from Get-

ing Suspension Bridge was complet-

TPI 14

Pennsylvania.

In the following year, the Wheel-

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ed across the Ohio River. As a result, Wheeling’s business really took off and, as did Marsh’s. In 1848, Marsh developed what became the icon, the Stogie. At the time, the cheapest cigars were Boston Cheroots selling for $3.50 to $4.00 per thoU.S.A.nd. They

During the U.S. Civil War, Mifflin Marsh gave each soldier fighting for the Union—which was why this part of Virginia broke off into West Virginia—a bunch of the Stogies to take with him. Marsh considered it a shrewd marketing tactic, spreading the word about his cigars to the other troops.

also were made out of scraps. Mifflin came up with an affordable long filler cigar named in honor of the Conestoga

the Union—which was why this part of

shooter Annie Oakley; U.S. Secretary of

wagons that traveled through Wheeling

Virginia broke off into West Virginia—a

the Treasury Andrew Mellon; showman

taking pioneers and settlers out into

bunch of the Stogies to take with him.

and Barnum & Bailey Circus. founder P.T.

the west. The Marsh Wheeling Stogie

(Again, he considered it a shrewd mar-

Barnum; soldier, politician, and a leader

was the result, measuring 7 inches with

keting tactic, spreading the word about

of the Texas Revolution, Sam Houston;

a 34-ring gauge. (And yes, the use of

his cigars to the other troops.) F.X.

author Mark Twain; and later even actor

the word stogie today to mean a cigar,

Smith simply made the cigars for the

John Wayne.

comes from the Marsh Wheeling Sto-

troops but the Stogie ended up being

The biggest smoker, though, was

gie.) Marsh also came up with the slo-

everywhere. According to the lore of

President Ulysses S. Grant who was said

gan “longer enjoyment” because of the

Marsh Wheeling, many famous celebri-

to smoke up to 20 a day. Even Rudyard

Stogie’s length.

ties of the day were known to occasion-

Kipling mentioned the Wheeling Stogie by

During the U.S. Civil War, Mifflin

ally smoke Marsh’s Stogie, including

name in Captains Courageous, though not

Marsh gave each soldier fighting for

U.S. President Abraham Lincoln; sharp

in a favorable way. A historic cigar indeed.

> The historic Marsh Wheeling factory on Market Street in Wheeling, West Virginia, U.S.A. circa 1921, when production was still entirely by hand.

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Stogie Sign, Thomas James Caldwell, CC BY-SA 2.0

{Manufacturer Spotlight}

> Above left: The iconic neon sign still sits atop the historic shuttered M. Marsh factory in Wheeling, W.V. Above right: A 1920’s-era Marsh Wheeling window sign.

Marsh

Wheeling

continued

pro-

National to close its own doors in 2015.

duction in West Virginia, but in 1930 it

Enter Craig and Chris. They knew the

take issue with relaunching the original

changed from long fill to mixed fill and

rich history of Marsh Wheeling and be-

Marsh Wheeling Stogie blends—they

from hand rolled to machine made, all

gan efforts to reclaim the famous brand.

were grandfathered and not subject to

in an effort to keep prices low. But the

The negotiations between Craig, Chris,

new product applications for permission

company was making 200,000 Stogies a

and their partners with National Cigar

to market—the bigger problem was de-

day. At its peak in the 1940s, the huge

Corp. took a bit of time, but eventually

signing new packaging for all of the prod-

Wheeling factory employed 600 people

the group succeeded in acquiring the

ucts to accommodate new health warn-

with newer machines that upped the total

manufacturing and distribution rights to

ing labels, which includes equal rotation

to over 250,000 per day. While cigarettes

the historic cigar.

of six different messages throughout a

were making inroads after World War II,

The first task was disassembling all

calendar year. Manufacturers who fail to

Marsh Wheeling continued to grow as ci-

of the machines in Indiana and moving

comply with the regulations would face

gar consumption in the U.S.A. hit its peak

them to their new home—in Santiago,

major fines from the FDA.

in 1964 with 9 billion cigars sold.

Dominican Republic. This was not a

In 1988 Marsh Wheeling was sold

simple process, considering the age of

es ready, Topper and Smith—like the

to National Cigar in Frankfort, Indiana,

the equipment was well over 70 years.

entire rest of the U.S. cigar industry—

with production remaining in place. But

Smith, however, was used to dealing

had to also redesign the packaging for

by 2001, National Cigar shareholders

with vintage cigar machines and even-

all of their existing brands, which for

had decided that quirky injury laws in

tually got them together. With Smith

a rather small operation is daunting to

West Virginia posed too great of a lia-

running the Dominican production, as

say the least. Although the deadline for

bility, and the company transfered pro-

well as distribution from F.X. Smith’s

complying with the new FDA packag-

duction to National’s Indiana factory,

McSherrystown, Pennsylvania facility,

ing regulations was delayed merely a

shuttering the historic Wheeling, W.V.

and Topper working sales from Meriden,

month before its August 2018 effective

facility. Meanwhile, increasingly bur-

Connecticut, the partners had hoped to

date, by then manufacturers had already

densome government regulations, par-

reintroduce the Marsh Wheeling Stogie

been preparing for over two years, so

ticularly those by the U.S. Food & Drug

in 2017, but old machines are finicky, and

the late reprieve was of little relief as all

Administration (FDA), ultimately forced

then there was the FDA.

of the work had already been done.

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Topper says while the agency did not

Besides getting the new Marsh box-

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In January 2018, Topper hired anoth-

er family cigar guy, Tony Suraci, whose family started making cigars in the early 1900s with Parodi and later Avanti. The Suraci family provided little dry cured cigars initially for Italian immigrants, but soon their business grew. The Suracis

The relaunched Marsh Wheeling Stogie was unveiled last year at the 2018 International Premium Cigar & Pipe Retailers Association (IPCPR) Trade Show in Las Vegas, and then at InterTabac 2018 in Dortmund. Two varieties are offered: natural or dark U.S. broadleaf wrapper.

sold the company in 2015 to the Italian cigar maker Toscano, but Tony Suraci, the grandson of the founder who had

there is a tremendous amount of his-

gie was unveiled last year at the 2018 In-

worked as sales and marketing director

tory in the brands and people who are

ternational Premium Cigar & Pipe Retail-

for his family, was looking for a new ven-

representing the brands. It is a unique

ers Association (IPCPR) Trade Show in

ture. Topper says Suraci will be focusing

opportunity and a huge potential. Cer-

Las Vegas, and then at InterTabac 2018

exclusively on the Marsh Stogie.

tainly a piece of history—no way to

in Dortmund. Two varieties are offered:

deny that,” Topper says proudly.

natural or dark U.S. broadleaf wrapper,

recently, I had no idea who these guys

in either 50-count Cuban dress boxes or

were, but he knows all the guys and the

because of federal regulators in Wash-

five-count carton packs.

product; it is similar to what he was do-

ington, D.C. “FDA threatens it all, and

ing before and he knows the market.”

have no doubt, FDA wants us out of

Marsh Wheeling Stogie to his own lines

“When I went to Wheeling with Tony

But Topper adds it could all go away

Topper believes the addition of the

Topper also likes the fact that three

business. Just because I have all these

will help grow both brands, which his-

families—each with their own long ped-

brands that are grandfathered, we get

torically have enjoyed different regional

igree in cigars—are all working togeth-

a little pass on the first go-through, but

popularity in the U.S. “They are both

er. “There are very few people to have a

it is just a pass on the first round. The

unique cigars,” he says, “and with their

brand from 1840. Also we are distribut-

more information, there will be more

histories they should do well.”

ing Craig’s brands from 1863, my own

compliance and this is the tip of the ice-

brands dating from 1896, and then to

berg for the FDA. They won’t go away.”

Topper Cigar Co., Inc., Meriden, Conn.,

bring in Tony whose family was a ‘new-

But he is optimistic.

Tel: (860) 620-0732, Email: info@topper-

bie’ getting into it in the early 1900s,

cigars.com, Web: toppercigars.com.

The relaunched Marsh Wheeling Sto-

TPI

> Left: Authentic Connecticut broadleaf tobacco hanging in a curring barn. Right: A worker preparing wrapper leaves at the former National Cigar factory.

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{Brand News} VegaFina Year of the Pig Released to Celebrate 2019 Chinese Zodiac Last year, Tabacalera S.A. released its first special edition VegaFina cigar celebrating the Chinese zodiac calendar with the VegaFina Year of the Dog, and for 2019 the company continues this new tradition with the debut of the VegaFina Year of the Pig, a new size in this series. The

presented in 16-count red lacquer boxes

JTI Romania Rolls Out Logic Compact

with gold accents. The smooth but complex

JTI Romania has become the first

blend is the same as last year’s Year of the

major tobacco company to enter the

Dog, featuring Dominican and Nicaraguan

e-cigarette segment in Romania’s

filler, a Nicaraguan binder, and a Habana 2000

reduced risk product category with

Nicaraguan wrapper, delivering a medium- to

the launch of Logic Compact e-ciga-

full-bodied cigar. This special edition is being

rette. The move has differentiated the

released worldwide in limited quantities.

company from its competitors in the

Tabacalera SL.U., Madrid, Spain, Tel: +34 91 360 9000.

market, which have instead focused

double-banded Titán vitola measures 56 x 140mm and features a pigtail cap; they are

on heat-not-burn technology. Logic

Villiger White Mini Offers Smoother Taste

Compact has been launched online and in retail stores in Bucharest.

Villiger White Mini is the latest addition to join the ranks of the Villiger Minis

range of bestselling cigarillos. It offers “unadulterated, real tobacco pleasure,”

launched in UK with excellent con-

according to the manufacturer. Smoother than the Villiger Black Mini, it is partic-

sumer feedback. Romania is now the

ularly suitable for novices and those

second country to continue the inter-

who enjoy mild flavors.

national roll-out,” stated Mark Rock,

General Manager of JTI Romania,

“One reason for the ongoing suc-

“Logic Compact was recently

cess of the Villiger Minis is the excel-

Moldova and Bulgaria.

lent product quality and the extensive

taste pallet which offers the perfect

device utilizing replaceable capsules

cigar for every connoisseur,” the man-

filled with EU-manufactured nicotine

ufacturer explains.

e-liquid. The vaporizer is available in

Logic Compact is a closed tank

Villiger Black Mini is perfect for

three metallic colors (slate gray, steel

purists, with its full-bodied taste that

blue, and rose gold). Logic’s pre-filled

differs from the smoother Villiger

e-liquid pods attach into place to the

White Mini, but also featuring unadulterated, real tobacco. The Villiger Green

device magnetically, as does the bat-

Mini is also well-known with its unique, incomparable Caipirinha flavor which easily

tery to the charger. Initially, the cap-

impresses fans of aromatic cigars. The fourth is the Villiger Red Mini, an aromatic

sules are offered in tobacco, menthol,

and smooth blend that enchants with its creamy vanilla flavor. And, last but not

berry mint and cherry flavors.

least, there is Villiger Gold Mini which offers a hint of vanilla flavor for those who

prefer subtle flavors.

currently available in 12 markets, which

account for around 75 percent of e-cig-

Not only the taste but also the modern design make the Villiger Mini family

Worldwide, Logic e-cigarettes are

ideal companions for everyday life. Each variant is presented in easy-to-access,

arette global value.

high-quality metal cases in corresponding colors, a perfect accessory to show off.

JT International (Romania) S.R.L.,

Villiger Sons Ltd., Pfeffikon, Switzerland, Web: villiger.ch.

Bucharest, Web: .jti.com.

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Limited Edition Toscano Mazzini Debuts

Manifatture Sigaro Toscano has released Toscano Mazzini, a new limited edition cigar for 2019 inspired by Giuseppe Mazzini, an important figure in Italy’s 19th century unification (Risorigimento) credited as the founder of the “Giovine Italia” movement.

The cigar is said to represent the “democratic soul” of unification.

The 100% Kentucky Italian tobacco cigar, made entirely of well-fermented tobaccos, contains a new blend of Kentucky leaf, where the notable intensity of Italian tobaccos are balanced with a new grade of North American filler tobaccos, the result of a selection by the blenders of seco (middle) plant leaves, which emphasize the traditional taste of the Tuscan cigar. Combined with Italian Kentucky binder and wrapper, the cigar delivers “remarkable aromatic complexity” in a balanced smoke with a sweet aftertaste. The cigars are presented in five-packs, suggested retail €7,50.

Quesada 1974 Unveiled in Spain Commemorating the founding of the company and factory by the Quesada family in the Dominican Republic in 1974, Quesada 1974 from Quesada

Manifatture Sigaro Toscano S.p.A., Rome, Italy, Tel.: +39 06 684011,

Cigars has been launched in the

Email: info@toscanoitalia.it, Web: manifatturesigarotoscano.it.

Spanish market. The blend comprises Dominican and Nicaraguan fillers, a

Omé White 100s and Omé Blue 100s from Karelia Tobacco Company

Dominican binder, and an aromatic

Karelia Tobacco Company recently launched two new versions of its popular Omé

and Nicaraguan fillers makes this

cigarette brand. The roll out of the new Omé Blue 100s and White 100s, each of

blend a medium to full body with

which are presented in round corner pack formats, complement this highly popular

rich notes of cedar, pepper and

range. Making the brands unique is the implementation of an evolutionary hollow

dry fruits,” said Miguel “Miguelin”

filter technology, offering a premium and smooth smoking experience.

Núñez, Production Manager at

Ecuadorian wrapper.

“The combination of Dominican

Each line extension offers its own unique smoking profile: Omé Blue 100s at

Quesada Cigars, noted the blend

8/0.8mg, and Omé White 100s at 3/0.3mg. The new brands made their first appearance

delivers a natural sweetness. “A

in Bulgaria, achieving highly positive reactions from retailers and consumers, and were

great smoke overall”.

showcased at the recent Intertabac to-

bacco fair in Dortmund, Germany, and the

(5 x 50) and Short Robusto (4 x 50)

TFWA World Exhibition in Cannes, France,

are presented in boxes of 25, and

along with the full Karelia Tobacco Compa-

Corona (6x 43) and Lancer (7 x 38)

ny portfolio, known for its premium quality

are presented in boxes of 28.

blends and distinct brand packaging.

our heritage and history,” said Manuel

Since its initial launch eight years ago,

Four sizes are offered: Robusto

“This project truly embodies…

the Omé brand has been successfully ex-

Quesada, president of Quesada

panded to more than 40 duty-free and do-

Cigars, “A cigar and a presentation

mestic markets in Western and Eastern

that will speak for itself.”

Europe, the Middle East and Asia Pacific.

Quesada Cigars, Santiago,

Karelia Tobacco Company, Inc.,

Dominican Republic,

Kalamata, Greece Tel: +30 27 210 69 213,

Email: info@Quesadacigars.com,

Email: info@karelia.gr, Web: karelia.gr.

Web: quesadacigars.com.

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{Showcase} Assouline to Publish The Impossible Collection of Cigars The newest volume in Assouline’s bestselling “Ultimate Collection,” the much-anticipated The Impossible Collection of Cigars (€820, US$995) envisions the ultimate humidor brimming with the most remarkable cigars of the 20th and 21st first centuries from the most prestigious makers. This oversized, 232-page luxury tome is a bid for readers to

consider-ing the differences and attributes of cigars like Nicaragua’s Padrón to

Colibri’s RacingInspired Apex Jet Flame Lighters

Dominican Republic’s Arturo Fuente and Davidoff of Geneva, Honduras’ Rocky

Drawing inspiration from auto racing, the

Patel to the Bahamas’ Graycliff, and, of course, Cuba’s arsenal of legendary

Apex Jet Flame Lighter from Colibri is

journey to the fabled Cuban tobacco farms, and get up close and personal with the torcedores as they discover the world’s most commendable and coveted cigars. Author Aaron Sigmond’s is a list any connoisseur could only dream of,

smokes. Sigmond is an award-winning publisher, editor, and author who has

named for the point at which the driver

traversed the world of cigars both personally and professionally for over 30

increases the throttle for the fastest exit

years, including serving as the founding editor of Smoke magazine and The Cigar

out of a turn. Powered by a robust sin-

Report, and a contributing cigar editor for Playboy and the author of Playboy: The

gle-jet flame, the Apex lighter is lit by a

Book of Cigars. Assouline, New York, NY, U.S.A., Tel: +1 (212) 419 5631, Web:

single-action push-up trigger. Air intakes

assouline.com.

on the front and side feed oxygen to the

Davidoff Adds New Travel Humidor Models

burners. The fuel window is reflectively tinted blue and positioned on the front

New Davidoff Travel humidor models, exclusive to Davidoff of Geneva Since 1911 stores and lounges, feature lightweight materials, a smart tray engineered exclusively for keeping cigars protected, and innovative welding techniques engi-

of the body for quick butane fuel level

neered to lock in humidity, offering travel-

readings. A roll cage wraps from the

ers the epitome of cigar care on the road.

front to the back of the body to help

Davidoff also includes a 2-way humidity

protect the painted body when placed on

device by Boveda to ensure cigars are

a tabletop or other surface. A pachmayr

kept at their best during up to 45 days.

pattern covers the sides and back of the

The knitted jacquard fabric is a “reinterpretation of modern tweed for a

body to provide a secure grip while han-

stylish and elegant look,” says Davidoff. Equipped with a handy, black leather

dling, and a large fuel adjustment dial on

strap that helps carry the humidor, these humidors have the “formal elegance

the bottom easily moderates the flame

of a business suit.” The beige Tuscany fabric and the brown, recycled bonded

height. Colors available are metallic black,

leather are evocative of the comfortable lounge chairs at Davidoff Lounges,

charcoal, metallic red, metallic blue,

while the orange fabric accents add a stylish twist that makes this humidor

orange, and green. Suggested retail €49,

particularly sleek. These limited and numbered Travel humidors are only avail-

includes gift box and two-year warranty.

able in Davidoff of Geneva since 1911 stores across the world.

Colibri, New York, N.Y., U.S.A.,

Oettinger Davidoff AG, Basel, Switzerland, Tel: +41 61 279 36 36,

Tel: +1 (347) 415-8562, Email: sales@

Web: oettingerdavidoff.com.

colibri.com. Web: colibri.com.

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