14
TOBACCO OUTLET BUSINESS
MAY/JUNE 2013
NEWS & TRENDS
MAY/JUNE 2013
HigHligHts
Obama Seeks
Tobacco Tax Hike
President Obama’s 2014 budget may
include a federal tax increase to fund
a preschool program.
Tobacco companies and retailers are gearing
up to fight anti-smoking groups and Washing-
ton on a federal cigarette tax increase President
Obama is proposing to finance a prekindergar-
ten program for four-year-olds. As the president
outlined in his annual State of the Union address
to Congress, he hopes to increase spending in
areas such as education while Republican law-
makers are pushing for additional budget cuts
as a way to reduce the federal deficit.
Even as a spokesperson for Reynolds Ameri-
can Inc. called the potential proposal “ludicrous”
and pointed out that the cost would fall squarely
on the middle class Obama has pledged to pro-
tect, White House spokesperson Jay Carney de-
clined to elaborate on the tobacco tax increase.
“Wait for specifics,” he reportedly responded
when questioned on the proposal.
“The idea of increasing taxes on low- to mid-
dle-income Americans at this time is ludicrous,”
said a RJR spokesperson. “As middle-income
Americans struggle to make ends meet in a
very slow economic recovery period, this is not
the time to hit them with higher taxes.”
Retailers are very concerned about the poten-
tial impact such a hike will have on the industry.
“We’re already being hit on all sides,” said a to-
bacco outlet owner. “The economy, state taxes,
smoking restrictions—this could be the nail in
the coffin.”
Richmond, Virginia-based tobacco-maker
Altria Group also spoke out against the propo-
sition. “It is unfair to single out adult tobacco
consumers with another federal tobacco tax
increase to pay for a broad, new government
spending program,” said David Sutton, a
spokesperson for Altria.
The federal government currently taxes ciga-
rettes at about $1 a pack, with the last increase
of 61 cents made in 2009.
Davidoff’s Nicaraguan
Adventure
Inspired by Zino Davidoff’s pioneering spirit, blenders from Davidoff
Cigars embarked on a worldwide search for tobaccos that would
create a unique cigar and landed in the tobacco fields of Nicaragua.
Preparing, curing and aging this tobacco for 10 years enabled the
company to “tame” the wilder tendencies of Nicaraguan tobacco
and deliver a blend with intensity and excitement, as well as refined
sophistication. The new “Davidoff Nicaragua” line will come in three
sizes: Toro (5.5x50), Robusto (5x50) and Short Corona (3.75x46),
and the blend combines a 10-year-old Havana-seed wrapper with a
binder from Jalapa and a filler blend of tobaccos from Estelí, Conde-
ga and the volcanic region of Ometepe. Davidoff Nicaragua will only
be available in limited quantities per year.
“This is a major step for us to expand to a new territory,” says Da-
vidoff CEO Hans-Kristian Hoejsgaard. “I wanted to develop products
that were not necessarily origin-specific or rigidly tied down to one
specific place. Davidoff is a brand, not a territory.”
JM Tobacco Launches Social
Media Presence
The premium cigar maker has started a Facebook page
and Twitter feed.
“We have entered the social media world,” reports JM Tobacco’s pres-
ident, Anto Mahroukian, who notes that the cigar maker has joined
the social media networks of Facebook and Twitter. “After seeing how
these two leading sites are now viable business adjuncts to traditional
promotional methods, we decided to join the instant communications
world.”
Facebook and Twitter enable JM Tobacco to announce special offer-
ings to JM’s distributors and retailers, as well as the company’s trade
show previews and post-show wrap-ups. Industry personnel and
smokers can stay abreast of the latest products and promotions, eas-
ily obtain up-to-date news on JM’s activities, cigar reviews, interesting
facts and history concerning the company and the world of fine cigars
in general. Reports on current events will feature timely announce-
ments and reviews of JM cigar events nationwide.
“Similar communications pertaining to our 50+ JM’s Hookah to-
baccos will be of interest to hookah lovers,” adds Mahroukian. “We
aren’t leaving anyone out, and invite all to become JM Fans.” JM’s
Facebook and Twitter links are
and
.
