Tobacco Business

[ 22 ] TOBACCO BUSINESS [ JANUARY / FEBRUARY | 22 ] How gimmicky marketing tactics could spell doom for the U.S. cigar industry OPINION / TOBACCONIST Avoiding theStrangeDeath of theCigar Industry I In his 2017 book “The Strange Death of Europe,” political commentator Douglas Murray argues that Europe is, in slow but certain fashion, committing suicide. Whether by unchecked mass immigration or declining local birth rates, Murray argues that European civilization is, with little opposition by Europeans, undermining its very existence. Comparing the cigar industry in America to Murray’s Europe might sound like a stretch. Unfortunately, it isn’t. Like Murray’s Europe, the cigar industry has a chief rival and threat: a powerful government agency called the U.S. Food and Drug Administration (FDA) with a stated goal of completely eliminating tobacco use. It has demonstrated it will use any means necessary to put tobacco companies out of business. All it needs to enact sweeping, destructive regulations like plain packaging or defacto bans on new products entering the market is a compelling political reason—a reason that would make defending the industry politically untenable, even by staunch supporters like Florida Senator Mark Rubio. Such as, for instance, cigar companies marketing their products to children and adolescents. Of course, marketing cigars to kids sounds preposterous. Premium cigars are too expensive. Kids certainly don’t like cigars—most adults don’t either! But imagine with me for a moment a public hearing where FDA officials present images proving that cigar companies are seeking younger consumers by branding cigars to be attractive to kids. For instance, this could be done by making cigars that reference popular children’s show characters or by making cigars that look like candy bars. Will an 11-year-old kid spend $10 to buy a premium cigar? No, of course not. But whether it’s realistic or not doesn’t matter. All the FDA, or federal or state anti-tobacco legislators need to crush the cigar industry is a plausible harm to the public. Marketing tobacco to minors is at the top of the list of plausible harms, and it was the main driver behind Canada’s plain packaging legislation in 2019. Let’s imagine what the possible implications are for the cigar industry if screenshots of products that could appeal to kids made their way into the hands of anti-tobacco congressional staffers or FDA interns: • introduction of plain packaging requirements • outright bans on new products or regulations so stifling new products are impossible to bring to market • tax increases at state and federal levels on premium cigars • bans on granting new tobacco retail licenses (see New York City) • bans on any positive media around cigars/cigar smoking, including on social media or blogs These regulations would drastically affect our industry for the worst, and although they might seem a long way off, just ask our friends in Canada how quickly plain packaging was implemented and how it has degraded the cigar culture there. What’s the “strange” part of the strange death of the cigar industry? To me, what’s strange is that few, if any, cigar smokers or media members have spoken out publicly against brands that seem intent on creating a PR crisis for this industry. As far as I can tell, smokers know that branding a cigar to look like candy or children’s cartoon characters is dangerous. In a recent Instagram poll I conducted with more than 130 voters, 69 percent of cigar smokers agreed the practice is irresponsible. However, for every one comment about how it’s not a good idea, there are a hundred more Instagram posts and YouTube videos promoting the products. The bottom line is that a small group of brands are putting the entire cigar industry at risk with gimmicky marketing, and if unchallenged, they’ll likely set the stage for more brands to follow suit with similar designs—and that will get the attention of the bureaucrats as well as the politicians. It’s hard to imagine an America with a radically stifled cigar market, where new blends are rare, cigars are astronomically expensive, and smoking in lounges is a thing of the past. However, most cigar brand owners and retailers I’ve spoken to are keenly aware of just how fragile our current freedoms are. How do we avoid this strange death of the cigar industry? It’s pretty simple, actually. Brands: Put the children’s characters, knockoff candy bars and video game characters down. There’s plenty of room for fun in branding—and no reason to be reckless. For consumers, my advice is to stop buying cigars that feature packaging designs you know would raise the interest of a kid or teenager and to stop buying products from the companies that make them. Together, we can preserve this incredible industry. We just have to try. TB Matthias Clock, founder of Fine Tobacco NYC, is a cigar and spirits expert specializing in consumer tasting and educational events. Originally from Portland, Oregon, Matthias moved to New York City in 2007 and in 13 years has hosted more than 120 events and helped promote and launch dozens of cigar and whiskey brands in the U.S. You can follow Clock on Instagram at @matthiasclock.