1950s: Wine & Cigars Diverge

The Sommelier Society of America opened its doors in this country in 1954. This educational and certification institution has helped create the public perception that wine is a sophisticated and enlightened human pleasure which enhances one's quality of life. And it is precisely that "Public Perception" which protects the wine industry from the type of hysterical crusading that is hurting the luxury tobacco industry today. In our society, luxury tobacco is perceived no differently than "Big Tobacco". And this is our single greatest challenge! Because the reality of our industry is far more positive than the public perception.

It was also during the 1950s that Homogenized Tobacco Leaf (HTL) was developed and commercialized. This non-premium amalgam of tobacco leaf, chemicals, stems, and other additives allowed for the homogenization and mass commercialization of non-premium cigars. Today, more than 90% of cigars sold in this country are non-premium products and use some form of HTL. This has made the cigar industry much more similar to the cigarette industry than wine. From a purely capitalistic perspective, this business model makes perfect sense: cigar companies were looking for growth, economies of scale, mass distribution, and more profit, so they followed the lead of the cigarette industry. Sadly, we have spent the last 50 years paying the price for our industries' similarities.

The last decade has truly been the most difficult and destructive time for the luxury tobacco industry, with one odd exception. Just before the spread of anti-smoking laws and the rise of draconian tobacco taxation, there was the release of Cigar Aficionado (CA) in the early 1990s. CA helped position the cigar industry in a completely new light with class and sophistication, as a luxurious pursuit and savoring of time. But this shift was more of a trend than a substantive change. And the reality of anti-tobacco crusading completely overshadows any of these positive facts. Any Tobacconist can tell you that the "boom" years were filled with "image smokers" who wanted to smoke cigars to look like the fancy and cool people on the pages of CA. But those customers are long gone now.

The effect of CA on our industry has been extraordinarily positive and dramatic, but it is far from being enough. To project culture and sophistication is not the same as having it, or earning it, or being accepted and embraced. So here we are.... still fighting S-CHIP, anti-smoking laws and absurd taxes.

"Nobody can give you Freedom. Nobody can give you Equality or Justice or anything. If you're a man, you take it." - Malcom X

By "take it" I mean: We must EARN it. We must educate ourselves on our products, history, traditions, and enlighten those around us. To change our reality, we must first change ourselves and then the world around us. The fight for our survival is about educating our society and carving out a viable place for us to thrive and contribute. If you believe any of this, then you must get Certified to help us take back our dignity and preserve the luxury tobacco industry for generations to come. Certification is just the beginning of a Foundation of Credibility. Just like Sommeliers prance around as the darlings of our modern society, perhaps Tobacconists will one day get their deserved respect.

Planning A Future (part I)

Judging from this picture (taken in Disney World) my mother recently sent me, I was a young aspiring Tobacconist as early as the 1970s. But it wasn't until the 1990s that I started fighting against the first wave of smoking bans in Princeton, NJ. Like the rest of those battles throughout the country, we eventually lost. Just like we lost the battle against ever increasing cigarette and cigar taxes as well. I can count a handful of last minute tax increases which were followed by letters to my retail company telling us we must pay 'x' amount of floor tax on whatever arbitrary date the legislators picked. Could this ever happen to Microsoft or GE? I doubt it. But they say small business is the heart of America...

I can't imagine any other industry having to deal with such unpredictable and debilitating legislation. But retail Tobacconists have persevered around the country. Somehow, we have weathered each of these storms as well as the internet/mail-order age and not disappeared off the face of the earth. It seems miraculous, and I don't know that this would be possible in any other industry! We are lucky to have loyal and passionate customers. Unfortunately, we do not have enough loyal and happy customers to effect serious taxation and policy change at the state or federal level. This is not because we are not a morally, intellectually, or politically righteous group, but rather because of the hysterical and reactionary nature of the times we live in. I call it a "Shock & Awe Society". Eventually, I believe we will be able to undo much of the hysterical legislation we have had imposed on us; after all, nothing is permanent and eventually we will all have to agree to respect each other and live together, both smokers and non, big and little business, and politicians and civilians. In our society there must be room for all perspectives and individual freedoms. At least, these are my hopes and dreams...

On Thursday, Oct. 18th, we will see if we have to face yet another repressive and life-threatening tax hike. I was going to write this after Thursday, but I realized it doesn't matter when I write it. Tobacconist University will continue to move forward no matter what the S-CHIP fiasco turns out to be, just as I will move forward with my retail company, no matter the outcome. I decided long ago to stick with the ship, and go down with it if necessary. My worst case scenario ambition is to be the last Tobacconist standing. Perhaps I am an idiot. But I would like to think that I am a man of conviction. I would like to think I fight for what I believe in, and in this case that is "Preserving Luxury Tobacco for Generations to Come". And above all, I believe in leaving the world a better place than when I found it.

It was past midnight this Saturday morning and I was in the shop with a few Tobacconists and a famous cigar maker. I was talking about the saga and strife that retail Tobacconists have suffered through, and our lack of PROACTIVE help and solutions. I found myself getting very emotional, another few seconds and my eyes would have teared up. I was talking about a future for Tobacconists. We may be the most challenged industry on the planet and it is a terrifying landscape. Frankly, I think we get very little help, and the first time I have ever seen the whole industry rally against a tax was when S-CHIP was announced; that is the first and only time I have ever seen cigar makers rally together to fight a tax or any anti-tobacco legislation. I suppose it is darkest before dawn.... so maybe they are ready to wake from their slumber. But for many retailers, it may be too late; and this probably suits the mail order companies just fine.

Recently I learned that one of the owners of the largest mail-order cigar businesses in the world doesn't even smoke cigars. When he purchased the company, decades ago, someone told him it would cloud his 'Business Judgement'. So he never smoked, and over the years he grew his company into a powerhouse brand, which I will not mention here. This mentality and lack of honor and passion for our products is part of the problem. This is why our industry has had its head buried in the sand for years, while hiding behind 'Big-Tobacco', waiting for them to do something... But 'Big-Tobacco' has no credibility, nor should they. Instead, they focus on their profit and loss statements, quarterly dividends, and growing in the 2nd and 3rd world. If you've owned their stock over the last decade, you have done very well.... congratulations. But during that time, Tobacconists have suffered a great deal, and consumers are losing their rights and places to smoke.

to be continued...

NJ Freedom Fighting

I just sent out the following letter to Governor Corzine here in New Jersey. Thanks to the diligent efforts of Ruth and Burton Weiss of Greentree Tobacco Company, the Governor's office has become interested in how the SCHIP legislation will ruin their tax base. As most 'normal' people (non-legislators) understand, the demand for premium pipe tobaccos and cigars is elastic, and the absurd taxation proposals included in SCHIP will decimate our profession and industry.




Dear Governor Corzine:

I am writing this letter in response to the current State Children’s Health Insurance Program (SCHIP) legislation which includes astronomical tax increases which will devastate the retail Tobacconist profession in New Jersey and throughout our country. Consequently, hundreds of thousands of jobs are also at stake in Central America and the Caribbean.

As the founder and president of A Little Taste of Cuba in Princeton, New Jersey, I can tell you that any significant tax increase will put us out of business. While we pay hundreds of thousands of dollars a year in taxes, we also employ eight individuals and provide health insurance for half of them. As Certified Tobacconists we are experts in luxury organoleptic products which are used in moderation by people savoring their time. Premium and luxury cigars and pipe tobaccos are delicacies which take years to produce and are touched by artisans’ hands several hundred times before they ever reach the consumer. As Tobacconists, we are honorable professionals who take pride in enhancing the quality of our customers’ lives and carrying on traditions that enrich our culture.

Please do not support SCHIP in its current form, as it will unduly punish and obliterate an entire industry and tax base. Please insist on alternative and more stable forms of revenue which will not result in adverse consequences and a decrease in tax revenues for the state.

Our entire industry is fighting this brutal tax on every level. Not a day goes by that I am not on the phone, writing letters and/or emails to combat this oppressive mistake. We are fighting in Central America and the Caribbean through diplomats, embassies, and the State Department. We are fighting through our local, state, and federal legislators as well. We have hired lobbyists, attorneys, and experts to help us all. But the biggest impact will be made by consumers who write letters, faxes, email and contact their representatives in government. Please get up off your rump and fight for your rights! Or there won't be a 'next time'.

Up In Smoke? part 2

I spent a couple of hours on the phone today talking to retailers, Tobacconists (both Certified & Not), and some high profile industry fellows. It was both enlightening and invigorating. This new federal tobacco tax ambush has rallied the industry in an unprecedented way. For the first time ever, manufacturers, distributors, and retailers can all get on one page. This is a fight for our survival and no one can disagree with that.

My hope is that professional Tobacconists will unite under the umbrella of our shared profession. While manufacturers and distributors must lead the fight against the draconian tax laws and repression, Tobacconists are the backbone and infantry of this business. Tobacconists are the public face of the luxury tobacco industry and we must be ready and willing to project our credibility. We are honorable professionals selling exquisite luxury products which enhance the value and quality of human life. We are honorable professionals selling exquisite luxury products which enhance the value and quality of human life. (Yes I wrote that twice.) Keep saying it and maybe it will start to sink in.

I think that this is just the beginning of the long road back to the America I love and cherish. You can only kick a puppy so many times before it fights back. Perhaps we have hit our breaking point.

Up In Smoke? part 1

Today was a strange Monday, to say the least. We made the front page of the world renowned Trenton Times, for all of the wrong reasons, as usual. Once again, A Little Taste of Cuba is the poster-child for beleaguered Tobacconists. Why can't someone do an article on Tobacconists for being world-class retailers or bastions of freedom in a shrinking landscape? Frankly, I am grateful that someone has taken notice that the newly proposed federal tobacco tax increase will do more damage than good. I hope this is just the beginning.

Some highlights in our manager's own words:

- "The tax can be so severe that it will backfire"

- 'It is unfair to tie the federal program to a particular group'

And one of our customers put it best:

- "I love the children", but "They can do that because there's not a lot of people who smoke cigars" - obviously he opposes...

And another retailer said:

- "It's a free country, why do they focus on just smokers?"

More Cigar Taxes

There was a flurry of activity in the cigar industry this week with the announcement of a 20,000% tax hike which just passed the Senate Finance Committee. The President said he will veto this bill so we may survive in the short-term; but what happens next time they try?

I was amazed at how many cigar companies were mobilized and sent out emails. I have never seen such an impressive effort by so many producers and distributors in the industry. I certainly did not see it on the state level when taxes went to 48% in New Jersey, nor do I think any Tobacconist has ever seen our vendors react so proactively. It's a shame. If they had supported and defended retailers when our taxes went up, maybe our Congressman and Senators would know better than to continue to punish this great industry. Instead, our elected officials in Washington think it is reasonable to punish the cigar industry in the same way they do cigarettes.

Retail Tobacconists are the infantry of the luxury tobacco business and they must be supplied and reinforced. The only way to preserve the luxury tobacco industry is to support Retail Tobacconists. The only way to preserve the luxury tobacco industry is to support Retail Tobacconists. The only way to preserve the luxury tobacco industry is to support Retail Tobacconists. Yes, I actually wrote that 3 times; it is worth repeating.