Survivor: Cigar Island - Who will last?

[Zen Cigar Man]

So another thread got me thinking about the Cigar Boom in the 90s and our current Cigar Bubble.

So many companies have come and gone in the 90s, so there's no reason to think the same for a lot of the companies out here today.

So who do you think will survive the next 5-10 years (if any)?

Keep in mind cigar/smoking legislation, the economy, acquisitions, and the potential of the end of the Cuban Embargo that could have a huge impact on the cigar industry...

What say you Brothers & Sisters?

 

[Clint]

Great question.

In looking at which companies will still be around, we can't really include the possibility of the embargo being lifted as a factor, since that is still just that....A possibility.

I think that quality will prevail....

Tatuaje, Viaje, and other brands that deliver consistent quality will eran return business.

 

[Clint]

...EARN return business

 

[Danilo]

I don't think the Embargo will have that much of an impact on NC cigar sales... sure, there are some that are gonna be going nuts for CC... but the NC brands will be ok.

 

[hdroadglide]

the majority of the losers during the boom were due to companies trying to cash in and rolled everything every piece of crappy leaf they could lay their hands on. At least today quality will give a shot at siccess.

 

[Zen Cigar Man]

A lot of the companies that didn't survive the boom were boutiques. Reliance on another manufacturer for your product can come at a cost, right?

My analogy is the small retail stores getting ousted by the Wal-Marts and Targets of the world.

To put in relatable terms, your Big 3 are:

Altadis, General/CAO, and Davidoff (Oettinger Group)

after that, you have your big families in the Padrons and the Fuentes and then what?

Rocky? Pepin?

The boutiques are the most at risk - quality or not, don't you think?

 

[Hendy]

Hopefully Altadis will lose everything when the battle starts on the names they stole after the embargo.

 

[Zen Cigar Man]

Hopefully Altadis will lose everything when the battle starts on the names they stole after the embargo.

General most certainly will.

 

[Clint]

A lot of the companies that didn't survive the boom were boutiques. Reliance on another manufacturer for your product can come at a cost, right?

My analogy is the small retail stores getting ousted by the Wal-Marts and Targets of the world.

To put in relatable terms, your Big 3 are:

Altadis, General/CAO, and Davidoff (Oettinger Group)

after that, you have your big families in the Padrons and the Fuentes and then what?

Rocky? Pepin?

The boutiques are the most at risk - quality or not, don't you think?

I think it's the opposite....Your analogy of the Walmarts of the world surving against the Mom & Pops is arguable with durable goods, staples, etc..... This battle is won and lost over volume equaling the lowest prices for the average person.
Boutique cigars are all about quality and taste rather than who has cigar "X" at the best price. Discerning smokers will buy what they like more or less regardless of price, so the Walmart strategy of buying in volume to provide low prices doesn't apply.

Just my 2 cents! Great trhread.

 

[Zen Cigar Man]

Good points, Clint. Quality cannot be discounted.

What about the vertical integration? Growing, harvesting, curing, rolling, etc...

Those that do this are more aligned to make it thru the long haul, no? Those that don't may go the way of the Dodo or sell.

 

[SanCristobal]

thanks to the general ignorance over the quality of cuban cigars, the ending of the embargo will destroy any american based cigar company...

 

[Clint]

thanks to the general ignorance over the quality of cuban cigars, the ending of the embargo will destroy any american based cigar company...

Not to metion that quality control will go out the window completely when the demand of a huge new market taxes the existing producton.

 

[swat253]

thanks to the general ignorance over the quality of cuban cigars, the ending of the embargo will destroy any american based cigar company...

I'm guessing that if the embargo is lifted, CCs are going to be jacked up to the point that the average cigar smoker will continue to purchase NCs after they/we buy a few and the new wears. If that's not the case, then it's a win-win...:dunno: