Heard in the Humidor: June 6-8, 2008

Cigar company executives thought 2008 might see a bit of a downtown in cigar sales. They may be right.

Although overall cigar sales are essentially flat through the first quarter of 2008, premium sales are apparently down somewhat according to the latest figures from the Cigar Association of America.

"Apparently" is the best that can be said since previous statistics are not comparable to the 2008 numbers due an unknown number of little cigars that were included in the premium count for 2007 and before. These have been factored out in 2008, leaving a purer measurement of premium (handmade) cigars coming into the U.S.:

• For March, some 19.4 million premium cigars came into the country, down from the 25.8 million from last year (that included some little cigars). The Dominican Republic was, as usual, the leader, with 8.57 million premium cigars or 44.2 percent of the total. Nicaragua was second with 5.44 million, an increase over last year and 28.0 percent and Honduras was a very close third with 5.38 million (27.7%). The "big three" accounted for 99.9 percent of all imports, with a few thousand cigars coming in from Costa Rica and Mexico.
• For the first quarter of 2008, the import total of 51.7 million was good, but down 14.25 percent from last year's figures (including some little cigars). The Dominican was again tops with 22.84 million (44.2%), followed by Nicaragua at 14.60 million (28.2%) with Honduras at 13.66 million (26.4%). That's 98.8 percent of all imports with small amounts from Mexico, the Philippines and Costa Rica.

It's worth noting that Nicaragua's figures are actually up over last year by 15 percent, showing the country's continuing growth in the cigar world. The average declared value per cigar from Nicaragua is also up to 60.5 cents each, a rise of more than 40 percent from just a few years ago. That's good, too, for the Nicaraguan cigar workers.

Although premium cigar imports appear to be down somewhat, the overall import picture for cigars in the U.S. remains good. Large cigar imports -- premium and machine-made -- actually increased for the first quarter, from 174.0 million in 2007 to 190.8 million in 2008, a healthy rise of 9.6 percent!

Little cigar imports decreased during the first quarter by about 10 percent, so the overall cigar import totals remained essentially flat. For the first three months of 2008, total U.S. cigar imports totaled 281.1 million compared to 273.7 million last year, a very modest increase of 2.7 percent, but still an increase.

The Dominican Republic continued to dominate the import picture. It provided 137.9 million of the 282.1 million import total or an astonishing 49.0 percent. The second largest producer of cigar imports was India -- almost all of which were little cigars -- at 37.7 million, followed by Honduras (30.7 million), Nicaragua (24.8 million) and Colombia (20.7 million). That means there are still a lot of cigars being bought and being smoked, but perhaps not quite so many premium cigars as in prior years.

>> The Zino Classic line has been a hit since it was introduced in a new form in 2006, and a seventh shape has now been added to the line, the Torpedo.

Launched in late May, the Torpedo measures 5 1/4 inches long with a ring gauge of 54. Like its siblings, it features an Ecuadorian-grown, Connecticut-seed wrapper with a Honduran-grown binder and Dominican and Honduran-grown filler leaves. Medium-to-full in body, these are rich and flavorful cigars that brought the Zino line into the 21st Century while respecting its roots.

The often-confused story of this brand is that after the imposition of the U.S. trade embargo with Cuba, Zino Davidoff wanted to introduce a cigar which could be sold in the United States. The answer was the Honduran-made Zino, which debuted in 1978.

Production of the Honduran-made Zinos ended quietly about 2005 and Hendrik Kelner re-blended the original Zino line and created the Zino Classic for 2006. It's been a winner and the Torpedo gives the Zino Classic line its first shaped cigar. It's offered in boxes of 20 at a retail price of $7.80 each or $156.00 per box, not including local sales or tobacco taxes.

>> J.C. Newman's La Unica Dominican Primeros line changed considerably in 2007, being offered in cabinet-style boxes after enjoying success as a first-quality brand in bundles since its introduction in 1986.

The brand line-up was also expanded for the first time in at least 17 years with the introduction of the No. 600, a Toro of six inches and 50 ring gauge, offered only with a natural-shade Connecticut-grown wrapper. Now the line has been completed with the debut of a maduro-wrapped version of the No. 600, making all six shapes available in both shades.

It's just in time, too, as the No. 600 has passed the robusto-sized No. 400 (4 1/2 x 50) as the most popular shape in the La Unica line. Connecticut Broadleaf is used for all maduro wrappers on La Unica, which is made at the Tabacalera A. Fuente in the Dominican Republic. The No. 600 maduro is offered in cabinets of 20 at a retail price of $5.25 each or $105.00 per box.

>> Short fillers: Find our latest tasting review, of the new Rocky Patel Summer Collection and his new blend for Nicarao, in our News & Views archives for May 30.

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

Rich Perelman

6/2/08

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