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Sunday
Aug012010

1 August Column: Tax a Happy Meal

Twenty-nine years and, poof, he’s gone. James Suckling, European Editor of Cigar Aficionado, and the journalist who visited Cuba more often than any other, is no longer with M. Shanken Communications. Like any ‘divorce’ there is his story and ‘her’ (in this case M. Shanken’s) story. And, alas, we will never know the facts.

When you’ve written for CA, anything else is a demotion. Perhaps James is going to write another book. He did write the authoritative book on Port (“Vintage Port”) years ago, and subsequent books under the Wine Spectator imprimateur.

Perhaps, he’ll find that his leaving does not advance his career. Let’s wait and see.

I was at Neptune Cigar Superstore & Lounge (9308 South Dixie Highway, Miami, FL 33156 – 305.670.0633 – www.neptunecigar.com) for a Puros Indios event, featuring roller Lazzaro Ramirez, the Master Blender in Miami, and presented by Alex Diez. Aside from the fact that the Neptune shop is very attractive and has an inviting lounge area; the event seemed to be quite a success thanks to Alex Diez. I listened to his presentation on two occasions, and I must say he was as smooth as silk; knew his cigars from filler to wrapper, from head to foot.

Puros Indios/Reyes Family cigars are hardly cutting edge, boutique cigars as we think of them. That is the result of coping with the patriarch, Rolando Reyes, Senior’s particular beliefs about what cigars people should be smoking. Nonetheless, Carlos Diez, the President and Frankie Santos, Marketing Manager, have been able to create the very successful Cuba Aliados Miami series and the two Reyes Family series.

That reminds me…now that Jose Ortega has segued from Puros Indios to My Father Cigar Company, his C.V. can indicate he has worked for two legendary cigar makers; Rolando Reyes, Sr., and Jose “Pepin” Garcia.

I can’t think of any other individual who can lay claim to that distinction. If you can think of anyone else, please let me know.

If you want to do something about children’s health…tax a “Happy Meal,” and stop badgering the cigar industry and, as a result, the cigar smoker!

Jeff Greene, a candidate for something-or-other (note the impression he has made on me) attacked Rep. Kendrick Meek (D, FL) for among other things, liking cigars! So much for real issue campaigning. But, I’ll let you read it for yourselves…http://www.politifact.com/florida/statements/2010/jul/27/jeff-greene/greene-attacks-meek-cigar-ties/

My point is that “Happy Meals,” and other crap that kids eat today, are resulting in morbid obesity in 5 year olds; diabetes and will led to cholesterol problems and coronary conditions. I think junk food is the natural source of revenue to aid in children’s health care and preventive care.

Some in IPCPR consider NATO (National Association of Tobacco Outlets) a second class organization. In point of fact, they should take a leaf (no pun intended) from the book of Tom Briant, NATO’s National Director. In order to fight cigarette taxes, Tom understood he needed facts. To get those facts, he commissioned a research organization to get them for him. Those facts, lead to documenting the tax windfall states would receive in tobacco taxes due to passage of the PACT Act, which precludes internet sale of cigarettes. This report is now being used to battle taxes that could lead to the extinction of his constituency.

Likewise, FDA Regulations, increased S-Chip tax and innumberable other regulations, bans, etc, can conceivably end the livelihoods of IPCPR’s members, in the next, I think, seven years.

And IPCPR fiddles while Rome burns. They have a PAC, and it is moribund. They have an Executive Director who eschews the level of cooperation, with other organizations, that is necessary for the survival of the cigar industry.

Organizations like IPCPR are interesting in that the Board and the Officers, my friend Gary Pesh is President, all have the best of intentions and know what must be done. Why then is it so difficult to deal with the entrenched management? Buy out the Executive Director’s contract and get a replacement that will function as he should function. These chaps don’t set policy, they implement policy.

I wonder where that concept got lost.

I was in the Nation’s Capitol, seeing friends and spending time at one of the country’s oldest tobacconists, W. Curtis Draper (640 14th Street NW, Washington, DC 20005 – 202.638.2555 – www.wcurtisdraper.com) and mingled with influential and interesting Washingtonians. My good friend Colin Ganley came by, as did William C. Paley, who has, only recently, brought back his grandfather, Samuel Paley’s remarkable, turn-of-the-century (the 20th century, that is) cigar, La Palina.

While at Draper’s, Bill presented Glynn Loope with an autographed box of the La Palina 1896, the first of the blends to be released.

In addition to great service, a fine selection of cigars and a tremendous location, Draper’s has a notable selection of pipes.

Being in DC you can’t help but notice how young the people who constitute the government are. I certainly have nothing against youth, but, I think we should have the same appreciation of age – in people, as we have in wine. There is hardly anything that can be substituted for experience.

Peggy Noonan, in her column in The WSJ on Saturday, 17 July, made much the same point. If you conjure it up, online, fire up one of your favourite cigars and give it a read. I think she makes a lot of sense.

 

 Bill Paley signs a box of La Palina for Glynn Loope Pipes at W. Curtis Draper

Antique Pipes at W. Curtis DraperAntique carved Meerschaum pipes at W. Curtis Draper

From Washington, I drove with Glynn Loope, CRA Executive Director, to his home in Roanoke, VA. Jill and Glynn had invited me to rusticate for a few days.

Thursday evening, the 22nd, I attended a packed to the rafters event at Milan Tobacconists (309 South Jefferson Street, Roanoke, VA 24011 – 540.344.5191 – www.milantobacconist.com). In 2012 Milan will be 100 years old, and join that select coterie of such long lived cigar emporiums (W. Curtis Draper is another). The event was with Pepin Garcia, and included the presence of Jose Ortega, VP of National Sales, John Gonzalez, VP of Int’l Sales, Scott Weeks and Taven Johnson of Weeks & Associates, the My Family Cigar Company sales rep for the Carolinas, Virginia, Georgia. Also present, and fascinating the crowd, with his extraordinary skills as a torcedore, was Pepin’s oldest friend and #1 roller, Rene Dominguez.

This was a Pepin Garcia everything event! El Rey de Los Habanos, Vegas Cubana, DPG JJ, DPG Black, DPG Blue, My Father, My Father Le Bijou, Jaime Garcia Reserva Especial, La Reloba. Have I left anything out? Well, Milan’s didn’t and the customers were buying ‘em all by the boxful, and not just one box full!

The event, which re-opened Milan’s doors from 7:00 – 9:00 PM (They close at 6:00 PM); was a smashing success, after which the Garcia party proceeded upstairs to the Commonwealth Cigar Club – a membership facility on the second floor of the Milan building.

There, the club members toasted the Master; smoked his cigars and eagerly asked all sorts of questions about tobacco aand cigars.

Jeff Loope, a talented young photographer, from Roanoke, took some 500 photos during the evening. All of them can be seen at www.facebook.com/photosbylupp. It appears to me that Jeff is a rising star when it comes to doing cigar photography. He will shortly have two web sites up: www.photosbyjeffloope.com; www.theafficionadocollection.com.

Anyone looking for cigar art or photography for cigar advertising would be doing themselves a favour taking a look at Jeff’s work. I am sure contact information is available on thes sites.

I had a wonderful conversation with Dennis and Elaine Milan Cronk. Dennis is the President of the Commonwealth Cigar Cub, and Elaine’s father, Joe Milan, was the founder of Milan Tobacconist.  Elaine, as you can see is an elegant lady that knows how to select, handle and smoke a good cigar…and she does enjoy them.

Dennis Cronk, Elaine Milan Cronk and GJA at the Commonwealth Cigar ClubMilan is an Appointed Davidoff Merchant and is famous, world-wide, for their pipe tobaccos, which they blend for a clientele that stretches from Roanoke to Rwanda; from Hong Kong to Hawthorne (CA). The machine they use to mix the blends looks like a small concrete mixer, and is kept as busy as such machines used to be in the halcyon days of conctruction in the United States!

This was my second visit to the club and I have enjoyed making the acquaintance of several people that are members, including my friend Aaron Moses.

Aaron Moses at Commonwealth Cigar ClubThe affair broke up around midnight, when most of downtown Roanoke had long since been shuttered. It was, after all, a Thursday night. The best the Garcia party could do, when it came to supper, was Applebee’s. I wished them G-d’s Speed and good luck!

The afternoon of the event, Glynn and I visited the National D-day Memorial in Bedford, VA. This exquisite tribute to the event, known as “Operation Overlord,” and those that lost their lives as the U. N. Allies commenced the task of pushing the German Wermacht back to Berlin, is something everyone should see. Perhaps, aside from my love of my country and its accomplishments and heroism, the only justification for including this in a column about cigars is the fact that General George S. Patton, Jr., smoked cigars!

Justification or not, it is high time, old fashioned patriotism was revived in the United States!

National D-day Memorial

National D-day Memorial

Glynn and I went over to Lynchburg, VA where he wanted me to see City Place Cigar (1507 Enterprise Drive, Lynchburg, VA 24502-5751 – 434.237.9084 – http://cityplacecigar.com/)  a really well laid out, and set-up lounge and shop.

We relaxed after a nice lunch we had at a bakery around the corner, in the Wyndhurst section of Lynchburg. With seating grouped nicely, so that small groups of friends could have an ‘area of their own’, a couple of the requisite flat screen TVs and a selection of cold beverages, coffee, etc, one is all set for an afternoon and/or evening. Reagan, no relation to the late POTUS – Reagan is the manager’s first name – is very pleasant and accommodating. He’s doing this for the love of cigars, and some money, I assume, while attending Law School.

The walk-in humidor, put in place by the original operator of the location is inadequate, but for now, has a small selection of very fine cigars (I would guesstimate 125-135 facings). Reagan informed me that it would be enlarged in the not too distant future.

Glynn Loope & Reagan at City Place Cigar Lounge, Lynchburg, VA

City Place Cigar Lounge, Lynchburg, VA

I am not so sure (now there’s an unusual admission from me)…that I would not like to see an end to in store events, and the constant drum roll accompanying new blends, etc. This business has become like the fashion industry, and in the very long run, it is deliterious to profitability.

That said, I was at a great EO Brands (Murcielago, Cubao, Cubao Maduro, 601) event at Cuenca Cigars (1928 Harrison Street, Hollywood, FL 33020 – 866.417.9454 - www.cuencacigars.com) on Saturday evening, 17 July. Erik and Eddie were both there, and the turn-out was typical of Cuenca. I got there, with Glen Gutin, at about 7:30 PM, and the tables that line Harrison Street, in front of the shop were full. People were eating; playing dominos; talking; and, of course, smoking those terrific cigars from EO Brands.

I immediately had a conversation with Erik and he assured me, they are doing nothing to the 601 Habano (red label) blend. I think the whole rumour got started because Rocky Patel, who now distributes their cigars, has an interest in a factory in Estelí…no, he won’t be making their cigars now. And it was exacerbated by a comment Eddie made about, maybe “tweaking the blend.” Well, “tweaking” is another word for changing. Why would they change the best selling 601 blend? Case closed.

IPCPR’s trade show starts on the 9th and I am looking forward to it, as much to see what’s new, as to see many old friends, and new, that I don’t get to see that often. I’ll also be busy working with Howard S. Goldsmith and Jason Volpe on videos for their new site CigarChannel.com. We’ve already got some terrific conversations shot already and we will be doing a comprehensive ‘walk through’ of the show.

THIS AND THAT…Perdomo Cigars has a brand new web site, in addition to some great new cigars, and prices that let you know that Nick is doing his best to help cigar smokers through difficult economic times. Congratulations on the web site, et al.

Pepin Garcia’s English is improving every day! I know, I spend a fair amount of time at their office in Miami when he is there. And, I see his postings on Face Book – although, I know he uses a marvelous Franklin Translator. Nonetheless, he is picking up English.

Every organization needs to open windows and use the broom occasionally. I think CAA and IPCPR could use a good dose of fresh air. CAA may need a high colonic!

A couple of people asked me if I thought Mateo Posada would be interested in helping them out at the IPCPR Trade Show. He certainly would; except that this year the show conflicts with the visit to Miami of a lady friend from Spain. Try him next year.

La Caridad de Cobre…What, you never heard of this brand? Trust me…it exists…is coming out with a new blend; this one made in the Dominican Republic (The original is made in Nicaragua).

Does this constitute a line extension or the cannibalizing of a brand without any real presence in the market? Beats me.

A friend asked me why I drop the name David Levy into my column lately. “Who is he?” “That’s my point,” I replied; “I just don’t want to see a legendary, cigar industry icon forgotten!”

Talking about cigar industry legends…whatever became of Magnate cigars. Last I knew the proprietor of the brand – which came to market in a state of rigor mortis, Rick Landis was an event organizer. I think that went the way of his cigars.

Who is David Levy?

"A good cigar is like tasting a good wine: you smell it, you taste it, you look at it, you feel it - you can even hear it. It satisfies all the senses."

Anonymous

 

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Reader Comments (1)

Dear Gary,

In a couple of your columns you have expressed your strong belief that the CAA does not commit enough energy to fighting battles in the states. In fact, the CAA will spend more than $2.5 million this year in retaining and supporting lobbyists in 46 states. You seem to believe we did not commit enough in New York State. In fact, we have retained two lobbying firms in Albany and just recently committed to spending more than $20,000 for an economic impact study which, among other things, will evaluate different levels of a possible tax cap in that state in order to protect the premium cigar industry and retail smokeships. In the fall, we will present the results of that study to the Division of the Budget, which has expressed an interest in the notion of a tax cap.

We have worked successfully in recent years with tobacco retailers to get and preserve tax caps in Washington State, Wisconsin, Rhode Island and Iowa.

In Florida last year, lobbying by the CAA and its member companies was the key reason why cigars were the only product which was not included in that state’s draconian tax increases on tobacco products. And the fact that Florida-based cigar manufacturers, importers and leaf dealers are allowed to continue smoking in their offices – in spite of that state’s constitutional amendment banning smoking in all workplaces -- was due to CAA efforts. Our efforts in New York City led to smoking ban exemptions in cigar bars, smokeships and the offices of tobacco manufacturers – exemptions which were later included in the state-imposed ban.

Even before this, the CAA was successful in getting retail smokeshops exempt from various state indoor smoking bans. These efforts have set a precedent adopted by other states.

The federal PACT Act enacted this year does not include cigars – the direct result of CAA efforts on the subject dating back to 2004. This means it is still possible to mail cigars through the US Postal Service, and cigars are not subject to the burdensome reporting and tax requirements of the Jenkins Act.

Our statistical reporting programs are the industry source for estimated total sales of premium cigars in the U.S.

The only reason that the SCHIP legislation enacted last year did not include a $3 tax cap on premium cigars is that the CAA and the IPCPR came together in 2008 to agree on a cap of 40 cents.

Our major strength as an association is that we represent all segments of the cigar industry. That is also our major weakness because we cannot be all things to all segments of the industry all the time. We fight on behalf of large cigars and little cigars, premium cigars and popular-price large cigars, flavored cigars and non-flavored cigars.

But another weakness is that we don’t constantly tout our successes. Rather, we continue to work behind the scenes with limited resources in an increasingly hostile environment made worse by the severe budget problems the vast majority of states are facing – a situation which will prevail for at least two more years. We often work with the IPCPR and NATO and, whenever possible, with other tobacco interests. And when these joint efforts are successful, it can truly be said that victory has a thousand fathers.

However, your columns make it apparent the CAA will have to do a better job in the future of touting its successes.

August 16, 2010 | Registered CommenterNorman Sharp
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