Tobacco Products International magazine – Quarter 3, 2019

THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 3, 2019

INTERTABAC 2019

Breaks Attendence Records, But Can Growth Continue?

• MacBaren Acquires Planta Tabak Brands • STG to Acquire Royal Agio Cigars in 2020 • 2019 Cigar Trophy Awards Presented

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{Contents} 6

TOBACCO PRODUCTS INTERNATIONAL » Q3 2019

FEATURES

{ EDITORIAL }

{ TRADEFAIR WRAPUP }

E. EDWARD “TED” HOYT III Editor

6 InterTabac/InterSupply Draws Record 13,800 Visitors An upgraded Dortmund Exhibition Centre and expanded show format welcomed an ever more international crowd of attendees from around the world for the world’s largest tobacco trade fair. » CONTRIBUTED REPORT

ROBERT M. LOCKWOOD Publisher & President { ART & PRODUCTION } MELINDA AYALA Production Coordinator

DEPARTMENTS

ROXANNE CORDOVA MELENDEZ Accountant

Industry News ..................................... 64 Brand News .......................................... 10 Product Showcase ................................. 12

{ ADVERTISING REPRESENTATIVES }

10

12

ALL REGIONS

Robert M. Lockwood TEL: + 1-212-391-2060, x111 EMAIL: robert@lockwoodpublications.com 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

{Editor’s Letter}

SUBSCRIPTION SERVICES:

A Changing Tobacco Industry Leads to an Evolving InterTabac Trade Fair

info@lockwoodpublications.com EDITORIAL SUBMISSIONS/INQUIRIES:

editor@tobaccoproductsmag.com

As new and emerging market segments—combined with traditional well established but actively growing ones—continue to flex their muscle and consumer appeal, their presence at the InterTabac trade fair have also been expanding, changing the face and personality of the event.

The water pipe (hookah) sector is booming, and as a result, has had much more presence at the show. In fact, Sabine Loos, CEO of Westfalenhallen, says water pipes, shisha tobacco, and related accessories showcased at InterTabac has increased by more than 50 per cent since 2013, now occupying its own area, Hall 8.

Meanwhile Next Generation Products, comprising e-cigarettes and e-liquids and the myriad of support equipment, has grown significantly in recent years, and this year occupied its own dedicated exhibit area in Halls 1 and 2.

AD INDEX David Ross International s.r.l. ....... 11 Durfort ........................................ 5 Intercontinental Tobacc ................. 7 Roll 4 You .................................. C2

As headlines in this issue of TPI illustrate, mergers continue to change the face of traditional tobacco, but for now it still dominates the industry.

» Ted Hoyt, Editor

Tobacco Products INTERNATIONAL

Tobacco Products International

TPI 3

{Industry News} Scandinavian Tobacco Group to Acquire Royal Agio Cigars Scandinavian Tobacco Group A/S (STG),

Illegal Cigarette Factories Targeted in Poland

a globally operating manufacturer of

Intelligence provided by Imperial

cigars, pipe tobacco, and fine-cut tobacco,

Brands has led to a series of suc-

reached an agreement in principle with

cessful raids on illegal cigarette

the shareholders of Royal Agio Cigars in

production sites in Poland in the last

September to acquire a 100% share in the Dutch family-owned business. The parties

12 months.

DUIZEL, THE NETHERLANDS—The

Danish

expect to complete the transaction in the first half of 2020.

Shareholders of Royal Agio Cigars believe the intended sale is in the interest of

Four sites have been shut down as a result of the operations, with 121

long-term continuity of the activities and the brands of the family-owned business,

million counterfeit cigarettes seized

which was founded in 1904. The combined product portfolio will comprise many

and more than 80 arrests made. The

successful and highly appreciated global brands. Royal Agio Cigars, known for cigar

actions have significantly disrupted

brands such as Agio, Balmoral, Panter, and Mehari’s, is one of the four largest cigar

four distinct criminal networks,

manufacturers in the world, with net sales of €133 million in 2018. Worldwide, the

stemming funds, dismantling infra-

company employs approximately 3,200 people in its factories in the Netherlands,

structure, and removing equipment

Belgium, Sri Lanka, and the Dominican Republic and its sales organizations in the

and manpower. All four sites were

Benelux, France, Germany, Italy, and the U.S.

counterfeiting brands produced by

“This decision has not been easy,” said Boris Wintermans, CEO of Royal Agio Cigars,

Imperial Brands, directly threatening

in a statement. “We have a wonderful company with highly committed employees and

the integrity of target markets includ-

loyal business partners, some of whom have been working with us for over 50 years. But

ing Germany, the UK, and Poland.

the combination of the two companies will be in a better position to deal with the financial consequences of ever-increasing legislation and regulations. We carry responsibility for the continuity of Agio and consider our decision to be inevitable in the long term.”

Listed on Nasdaq Copenhagen since 2016, STG holds over 200 global brands and a number of strong local brands and employs 7,650 people, mainly in the Dominican Republic, Honduras, Nicaragua, Indonesia, New Zealand, Australia and the U.S.

Mac Baren Tobacco Takes over Berlin-based Planta Tabak-Manufaktur Brand Portfolio

tablished family business, and we are

SVENDBORG, DENMARK—Mac

a difficult but deliberate step. After 63

Planta Tobacco’s popular pipe tobacco

Tobacco announced an agreement to

years and three generations of successful

and fine cut brands including Danish

acquire the outstanding pipe and fine-

ownership, the family-owned company

Black Vanilla, Holger Danske, Cellini,

cut tobacco brands from Planta Tabak-

stopped producing tobacco in Berlin on

PL88, and Cheetah now be produced

Manufactur’s traditional portfolio.

31st August 2019. “With the many chal-

by Mac Baren Tobacco Company.

Baren

“The Planta portfolio includes a num-

lenges our family has faced over the past

very happy that the legacy of our parents and grandparents will continue.”

Going forward, international sales

ber of very strong and internationally

few years and the ever-increasing require-

for Planta tobacco will be managed

renowned brands that strengthen the

ments of the EU Tobacco Directive, we

directly by Mac Baren Denmark, while

product range of the Mac Baren Tobacco

have decided to withdraw from tobacco

German distribution will remain in Berlin

Company,” said Mac Baren CEO Simon

production,” said Obermann.

at Unitas Tabakfabrik GmbH, a Planta

Sophus Nielsen.

For Nils Obermann and Lukas Stiller,

“Mac Baren’s offer to acquire our

sister company that was included in

business required little consideration

the transaction. Obermann has agreed

the young managing directors of the tradi-

and we quickly agreed,” said Stiller.

to stay with the business as Managing

tional Kreuzberg company, the move was

“Like us, Mac Baren is an old, well-es-

Director with Unitas.

TPI 4

Q3 2019

Photos: Wolfgang Helm/Messe Dortmund

{Tradefair Roundup}

InterTabac 2019 Draws Record 13,800 Visitors

many challenges in the future. The con-

Improved services, a new accompanying programme, and a modernised look set higher new standards at the InterTabac and InterSupply trade fairs. »CONTRIBUTED REPORT

therefore incredibly important for whole-

I

densed overview of all tobacco product and ancillary product segments as given

by InterTabac at the Dortmund location is salers and retailers in today’s world.”

Classic segments continue to be a central element. Fans of classic tobac-

nterTabac, the world’s largest trade

Almost 58 per cent of the visitors

co products and pipes and cigars got

fair for tobacco products and smok-

came from Germany. “German partic-

their money’s worth. Exhibitors in Halls

ing accessories, was again the most

ipants primarily included classic tobac-

4 to 7 showcased additive-free ciga-

important meeting place for national

conists, explained Sabine Loos, CEO of

rettes, high-quality pipes, and interest-

and international representatives of

Westfalenhallen Unternehmensgruppe

ing up-market products from small cigar

the tobacco industry, retail and whole-

GmbH. “The interest in new topics and

manufacturing businesses.

sale sectors this year from 20 to 22

trends and the personal exchange of in-

The satisfaction of the tobacco retail

September and boasted about 40,000

formation prevailed as usual. That is not

trade with InterTabac 2019 was under-

sqm of exhibition space in the halls of

surprising because only InterTabac gives

lined by Steffen Kahnt, Director of the

the Dortmund Exhibition Centre.

retailers and wholesalers the opportuni-

German Association of Tobacconists. “In-

Besides numerous German visitors

ty of exploring and testing the product

terTabac has once again given the retail

from the key target groups and sec-

width and depth and making contacts

sector an overview of all segments of the

tors—including classic tobacconists

with established and new customers.”

national and international tobacco world.

petrol stations, and kiosk retailers—inter-

Thomas Schäfer, Managing Director

It continues to be an indispensable dia-

nationality was again an important fea-

of the Tobacco Trade Association of North

logue, information and order placement

ture of the trade fair. About 42 per cent

Rhine Westphalia added that, “Year after

platform, especially for tobacconists. This

of the visitors came from abroad: The vis-

year, InterTabac expands its reputation as

central meeting place gives a comprehen-

itors’ home countries included the USA,

the world’s flagship trade fair of the to-

sive overview, especially of the classic ci-

China, Chile and South Africa. European

bacco industry and as the meeting place

gar, cigarette and pipe segments, to make

home countries were primarily Spain,

of the tobacco family. And that applies

the retailers’ product portfolios viable for

Italy, France, The Netherlands and Turkey.

again this year. The trade must overcome

the future,” SteffenKahnt said.

TPI 6

Q2 2018

{Tradefair Roundup} NGP Segment Popular Again

by the guests. Sabine Loos explained the

Improved Services for Fair Visitors

Building upon growing momentum in

background of the new offer: “Thanks to

Besides the innovative accompanying

previous years, there was great inter-

the accompanying programme, InterTa-

programme, new services also made the

est in Next Generation Products (NGP),

bac is now much more than an import-

trade fair even more attractive, including

which this year filled the entire West-

ant order placement platform. It sets

a choice of exclusive hotel packages and

falenhalle event arena and Halls 1 and

new standards for the national and inter-

an improved shuttle service to nearby

2 of the Dortmund Exhibition Centre.

national exchange of trade information.

airports and last but not least the new

Trade visitors purused the latest e-cig-

Accordingly, visitors can ideally prepare

modern, functional and light-flooded

arette hardware, tested innovations in

and pave the way for future business ac-

4,500 sqm North Entrance.

the vape segment, and sampled popular

tivities here.”

Interested exhibitors and trade vis-

smokeless products such as chewing

One of the many exciting lectures

itors can already note the date in their

tobacco. “The NGP segment continues

was futuristic: Dr Felix Stehle from the

diary for next year’s InterTabac and In-

to show a positive development and

Technical University of Dortmund gave

terSupply. The two trade fairs will take

that was also evident from this year’s In-

an overview of the “Generation of a

place from 18 to 20 September 2020 –

terTabac trade fair,” noted Loos.

nicotine-free, nontransgenic tobacco

of course again in the halls of the Dort-

A similar situation could be seen on

plant” topic. With the aid of state-of-

mund Exhibition Centre.

the shisha stands in Hall 8 and a part of

the-art scientific methods, researchers

Hall 6. “The pleasure of smoking shisha

succeeded in modifying the genes of

as a new pastime is very popular. The

a tobacco plant in such a way that its

exhibitors took this trend into account

leaves no longer contain any nicotine.

and showcased their diverse product

These results open up the opportuni-

range that fulfils all wishes of the con-

ty for the tobacco industry to produce

sumers,” said Loos.

nicotine-free cigarettes. The “Cigar &

TPI

Nicaraguan cigar maker Joya de Nicaragua launched its new limited production “ambassador” cigar, Número Uno, limited to only 1,500 boxes a year for the global market.

Rum Pairing” event where internation-

New Events Expand InterTabac

al premium rum brands were paired

The premiere of the new diverse accom-

with Nicaraguan cigars to give the par-

panying programme that supported this

ticipants a very exciting taste experi-

year’s trade fair was very well received

ence was very popular.

2019 Cigar Trophy Winners

BEST CIGAR BRAND Cuba: Cohiba Dominican Republic: A. Fuente Honduras: Plasencia Cosecha 146 Nicaragua: Perdomo Habano Bourbon Barrel Aged BEST CIGAR Cuba: Cohiba Siglo VI Dominican Rep.: Davidoff Winston Churchill The Late Hour Churchill Honduras: Eiroa The First 20 Years 54 × 6 Nicaragua: My Father La Opulencia Toro U.S.A.: Tatuaje 15th Anniversary Habano Rosado Belicoso Fino

The Cigar Trophy Awards are one of only a few honors in the industry that are determined by consumer voting, first by nominating candidates in five different categories (Best Brand, Best Cigar, Best Value, Best Accessory, and Best Lounge), then voting for a winner among the top five finalists within each category. In addition, four additional awards are selected by staff members. The 2019 awards were presented by Cigar Journal Magazine on Friday, 20th September, at the Westfalenhallen Dortmund Conference Center.

TPI 8

Q2 2018

BEST VALUE Cuba: Saint Luis Rey Dominican Republic: E.P. Carrillo Encore Honduras: Villa Zamorano Nicaragua: A.J. Fernandez New World Cameroon BEST CIGAR ACCESSORY: Boveda BEST CIGAR LOUNGE: Kempinski Cigar Lounge by Zechbauer CHARITY & COMMUNITY: Toast Across America OUTSTANDING ART: DeArt Italian Fine Furniture AMBASSADOR: Cigar Rights of Europe LIFETIME ACHIEVEMENT: Rocky Patel

Tobacco Products INTERNATIONAL

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THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 2, 2018

The Dominican Republic’s association of leading cigar makers, Procigar, hosted the 11th Annual Procigar Festival where it welcomed Royal Agio Cigars as its newest member.

THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 3, 2018

INTERTABAC MARKS 40 YEARS Dortmund trade fair continues to expand its global reach and merchandise depth.

PLUS: • James J. Fox Brings La Casa del Habano to Harrods

THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING

Quarter 1, 2018

FESTIVAL DEL HABANO AT 20

Excitement at Cuba’s Habanos Festival 20 Años was boosted by strong Habanos S.A. financials for 2017, thanks to the surging Chinese market.

PLUS: • Arnold André is Once Again 100% Family Owned • Cohiba Atmosphere Opens in Sofia, Bulgaria

To Subscribe: Call: +1-212-391-2060 Email: info@lockwoodpublications.com PLUS: • Italy’s Toscano Cigar Turns 200 • Habanos Terrace Opens in Lugares, Italy

Subscription Rates: Prices in USD

1 year $15

2 years $24

www.tobaccoproductsmag.com

{Brand News} CAO Hommage to Nicaragua from STG Scandinavian Tobacco Group (STG) has created CAO Hommage to Nicaragua, a limited edition 58 ring gauge by 6 inch Gran Toro with a unique blend for select international markets. The cigar will be released in late 2019 in select countries.

The cigar is made at Scandinavian

Nicaraguan growing areas— Jalapa,

Davidoff’s Camacho Connecticut Distillery Edition

Condega, and Estelí—along with Honduran filler, Connecticut broadleaf

This fall, Davidoff is bringing one of its

binder, and Ecuadorian Habano wrapper.

new Camacho Distillery Edition cigars

Tobacco Group Estelí in Nicaragua, utilizing a filler blend that includes tobaccos from three major

Custom packaging was also created for this limited edition, including a oneof-a-kind ring, foot band, and sleek matte white boxes of 10 cigars.

According to Scandinavian Tobacco Group, the cigar will be available in The

to European markets.

Camacho Connecticut Distillery Edition is a variation of one of

Netherlands, Belgium, Luxembourg, France, and Spain as well as select Asian markets.

Camacho’s best-selling core blends

Scandinavian Tobacco Group, Ltd., Denmark, Web: caocigars.com.

expressed in a deeper, more complex and unique flavor profile by aging the company’s proprietary Corojo tobacco

Villiger Cristal Premium Filtered Cigarillos

from Honduras in charred bourbon barrels for a minimum of six months.

The House of Villiger presents Villiger Cristal, a new brand created to deliver “plea-

The blend is represented in a 50 x 6

sure in a class of its own.” Company chairman Heinrich Villiger spent a lot of time

Toro format.

refining and sampling until he had the perfect tobacco mixture, the Swiss company

“This is boldness meets bal-

explains. The result: two exquisite filter cigarillos made from the best tobaccos, dis-

ance, with a bourbon influence,”

tinctive through their unique taste and quality. Two varieties are offered.

the company explains. “We put a

Villiger Cristal Original Blend, in its blue shoulder box, targets consumers who

complex spin on an old classic.”

like the taste of pure tobacco, with top-grade

The bourbon barrel-aged Corojo

filler made from Cuban tobaccos.

tobacco is then combined with

Villiger Cristal Special Blend, with its

Aleman Ligero from Honduras

magenta-colored package, is dedicated to lov-

and Nicaragua, Honduran Corojo

ers of flavored cigarillos. Its “exquisite”

binder, and Ecuadorian Connecticut

aroma promises an “extraordinary”

wrapper to create this special vari-

smoking experience.

ation of the Camacho Connecticut

To accompany these luxury cigarillos—which are highlighted by laser

blend. The cigars are presented in 20 -count lacquered boxes.

designs at the cigarillo’s filter end—Villiger created

Davidoff says the Camacho

premium 20-count shoulder boxes featuring spar-

Ecuador Distillery Edition is “new

kling highlights. Suggested retail, 7.50€.

school” bold with a vintage twist, a

In promotional materials, Villiger tempts consumers to “make a conscious deci-

powerful blend offering a wide variety

sion for extravagance and elevate your smoking experience to the next level. Spoil

of complex flavors. It’s a smoke that

yourself with a Villiger Cristal, sit back, and let your mind wander. Life is too short to

looks as good as it tastes.”

postpone indulgence.”

Oettinger Davidoff AG, Basel, Switzer-

Villiger Söhne AG, Pfeffikon, Switzerland, Web: villigercigars.com.

land, Web: oettingerdavidoff.com.

TPI 10

Q3 2019

Royal Agio Cigars Releases Ernest-Perez Carrillo Collaboration, Dueto, in Europe Royal Agio Cigars has brought its Balmoral Serie Signatura Dueto, the first handmade cigar blend released under its collaboration-based Balmoral “Signature Series” platform, to Europe following its US launch last year. For this first release, Royal Agio Cigars CEO Boris Wintermans teamed up with the legendary Dominican Republic cigar maker Ernesto Pérez-Carrillo to deliver a special, one-of-a-kind sensorial experience.

Blended by Pérez-Carrillo at his Tabacalera La Alianza factory in the Dominican Republic to “excite the senses,” Dueto captures the complex intersection of two distinct premium cigar blending signatures. Incorporating each cigar makers’ hand-selected, preferred tobaccos, this cigar blend delivers the signature elegant robustness of Pérez-Carrillo cigars and the signature balance of sophisticated complexity and smoothness of Wintermans’ Balmoral handmade cigars.

“I want to push the boundaries of what can be discovered in premium cigar blending, and it is this desire that inspired the creation of the Balmoral Serie Signaturas and initial conversations with Ernesto,” said Wintermans.

Added Pérez-Carrillo, “For the both of us, it’s never been about big volume. It’s just the opposite. It’s always been about the underlying passion that drives us to create new and unique cigar blends that will inspire cigar smokers.”

Royal Agio Cigars, Duizel, The Netherlands, Web: agiocigars.com.

Balmoral Serie Signatura Dueto showcases extensively aged Nicaraguan and exclusive, stalk-cut Brazilian Mata Norte fillers; an Estelí, Nicaragua binder, and a robust, yet elegant Nicaraguan wrapper from Jalapa. The line, which is now available in Europe, is presented in five vitolas, packaged in 10-count boxes—Robusto 5 x 50; Ovación (Figurado) 5 1/2 x 50; Gran Toro 6 x 52; Gordo 6 x 60; and Churchill 7 x 49.

Tobacco Products International

TPI 11

{Showcase} Elie Blue Marquetry Jet Flame Cigar Lighters The marquetry decorations on Elie Bleu’s J-14 torch flame lighter models replicate the marquetry featured on its Alba humidor collection, providing

sales as the company continues to expand its concept of matching families of

Zino Z-Collection Adds Humidors and Leather Cases

accessories. The meticulously crafted inlaid designs are made from small pieces

The Z80 humidor comes in a modern

of variously colored wood, painstakenly cut and assembled entirely by hand in

design combining a wooden look with

the grand French tradition known as “element by element” marquetry. Lighters

fresh accent colors. The result are strik-

feature all-brass case construction, the company’s exclusive cigar diamond jet

ing blends: natural oak/red, black oak/

burner system technology, piston cap operating system, side ignition, view tank

mint, gray oak/cyan. The humidors are

window with level gauge, half moon flame adjuster, fuel cover, and rhodium

equipped with the proprietary Zino slim

finishes. Four different styles are offered—Black, Yellow, Blue, or Red lacquer—

self-regulating humidification system

each featuring its own unique inlaid marquetry design. Suggested retail, €295.

that provides optimal storage conditions

Elie Bleu S.A., Gennevilliers, France, Web: eliebleu.fr.

for up to 80 cigars, ensuring 70-72% rel-

retailers an opportunity for either standalone or add-on

ative humidity. Fully lined with premium Okoumé, an odorless and tasteless wood to prevent flavor transfer to cigars and equipped with a tray and dividers; this eye-catching, mid-size humidor is an easy answer to keeping cigars in perfect condition.

Sporty Edgar Pipe from Vauen Technical, dynamic, and extraordinary: the sporty Edgar pipe is a cut above. The ribs of the ceramic composite bowl ring on this solid briar pipe have the same effect as

Made by hand of cowhide leather and lined with vibrant colors that match the humidors, the Z-Collection cigar

the cooling fins on a motorbike cylinder. Thanks to their heat dissipation capabilities,

cases will keep two

these fins literally make the smoking experience cooler. For fans of bent pipes, the

cigars up to

purist design has also been interpreted in a curved shape. Designed and hand made

a 54 ring

in Germany, features acrylic fishtail mouthpiece with silver ring, finished in “white

gauge

dot” quality in a choice of sleek white or rich brown stain. Comes in a gift tin.

humidi-

Vauen Vereinigte Pfeifenfabriken Nürnberg GmbH, Nuremberg, Germany, Tel:

fied for

+(49) 911 4243680, Fax: +(49) 911 4243668, Email: info@vauen.de, Web: vauen.de.

15 days. Its ergonomic shape with adjustable length provides ultimate comfort in

Peterson of Dublin Christmas Pipe 2019

the hand. These hand-made cigar cases are available in two sizes: XL-2 to fit up

Peterson’s special edition Christmas pipe for 2019 presents 12 of their most pop-

to a Toro format, and R-2 that fits up to a

ular shapes in a warm and subtly festive palette finished in a rugged, burgundy

Robusto format. The cases are available in

rustication, topped with a bright copper mount, and fitted to a

colors matching Davidoff’s new Z80 humi-

cumberland patterned acrylic mouthpiece.

dors. €495 suggested retail price.

Peterson of Dublin, Dubline, Ireland,

Oettinger Davidoff AG, Geneva,

Email: sales@peterson.ie, Web: peterson.ie.

Switzerland, Web: davidoff.com.

TPI 12

Q3 2019