THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING
Quarter 3, 2019
INTERTABAC 2019
Breaks Attendence Records, But Can Growth Continue?
• MacBaren Acquires Planta Tabak Brands • STG to Acquire Royal Agio Cigars in 2020 • 2019 Cigar Trophy Awards Presented
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{Contents} 6
TOBACCO PRODUCTS INTERNATIONAL » Q3 2019
FEATURES
{ EDITORIAL }
{ TRADEFAIR WRAPUP }
E. EDWARD “TED” HOYT III Editor
6 InterTabac/InterSupply Draws Record 13,800 Visitors An upgraded Dortmund Exhibition Centre and expanded show format welcomed an ever more international crowd of attendees from around the world for the world’s largest tobacco trade fair. » CONTRIBUTED REPORT
ROBERT M. LOCKWOOD Publisher & President { ART & PRODUCTION } MELINDA AYALA Production Coordinator
DEPARTMENTS
ROXANNE CORDOVA MELENDEZ Accountant
Industry News ..................................... 64 Brand News .......................................... 10 Product Showcase ................................. 12
{ ADVERTISING REPRESENTATIVES }
10
12
ALL REGIONS
Robert M. Lockwood TEL: + 1-212-391-2060, x111 EMAIL: robert@lockwoodpublications.com SPECIAL SALES REPRESENTATIVE
George E. Lockwood TEL: + 1-413-775-0005 FAX: + 1-413-775-9010 EMAIL: lockwood.george@gmail.com Tobacco Products International Lockwood Trade Journal Co. Inc., 3743 Crescent Street, Second Floor Long Island City, New York 11101 U.S.A. Tel: +1 (212) 391-2060
{Editor’s Letter}
SUBSCRIPTION SERVICES:
A Changing Tobacco Industry Leads to an Evolving InterTabac Trade Fair
info@lockwoodpublications.com EDITORIAL SUBMISSIONS/INQUIRIES:
editor@tobaccoproductsmag.com
As new and emerging market segments—combined with traditional well established but actively growing ones—continue to flex their muscle and consumer appeal, their presence at the InterTabac trade fair have also been expanding, changing the face and personality of the event. The water pipe (hookah) sector is booming, and as a result, has had much more presence at the show. In fact, Sabine Loos, CEO of Westfalenhallen, says water pipes, shisha tobacco, and related accessories showcased at InterTabac has increased by more than 50 per cent since 2013, now occupying its own area, Hall 8. Meanwhile Next Generation Products, comprising e-cigarettes and e-liquids and the myriad of support equipment, has grown significantly in recent years, and this year occupied its own dedicated exhibit area in Halls 1 and 2.
AD INDEX David Ross International s.r.l. ....... 11 Durfort ........................................ 5 Intercontinental Tobacc ................. 7 Roll 4 You .................................. C2
As headlines in this issue of TPI illustrate, mergers continue to change the face of traditional tobacco, but for now it still dominates the industry.
» Ted Hoyt, Editor
Tobacco Products INTERNATIONAL
Tobacco Products International
TPI 3
{Industry News} Scandinavian Tobacco Group to Acquire Royal Agio Cigars Scandinavian Tobacco Group A/S (STG),
Illegal Cigarette Factories Targeted in Poland
a globally operating manufacturer of
Intelligence provided by Imperial
cigars, pipe tobacco, and fine-cut tobacco,
Brands has led to a series of suc-
reached an agreement in principle with
cessful raids on illegal cigarette
the shareholders of Royal Agio Cigars in
production sites in Poland in the last
September to acquire a 100% share in the Dutch family-owned business. The parties
12 months.
DUIZEL, THE NETHERLANDS—The
Danish
expect to complete the transaction in the first half of 2020. Shareholders of Royal Agio Cigars believe the intended sale is in the interest of
Four sites have been shut down as a result of the operations, with 121
long-term continuity of the activities and the brands of the family-owned business,
million counterfeit cigarettes seized
which was founded in 1904. The combined product portfolio will comprise many
and more than 80 arrests made. The
successful and highly appreciated global brands. Royal Agio Cigars, known for cigar
actions have significantly disrupted
brands such as Agio, Balmoral, Panter, and Mehari’s, is one of the four largest cigar
four distinct criminal networks,
manufacturers in the world, with net sales of €133 million in 2018. Worldwide, the
stemming funds, dismantling infra-
company employs approximately 3,200 people in its factories in the Netherlands,
structure, and removing equipment
Belgium, Sri Lanka, and the Dominican Republic and its sales organizations in the
and manpower. All four sites were
Benelux, France, Germany, Italy, and the U.S.
counterfeiting brands produced by
“This decision has not been easy,” said Boris Wintermans, CEO of Royal Agio Cigars,
Imperial Brands, directly threatening
in a statement. “We have a wonderful company with highly committed employees and
the integrity of target markets includ-
loyal business partners, some of whom have been working with us for over 50 years. But
ing Germany, the UK, and Poland.
the combination of the two companies will be in a better position to deal with the financial consequences of ever-increasing legislation and regulations. We carry responsibility for the continuity of Agio and consider our decision to be inevitable in the long term.” Listed on Nasdaq Copenhagen since 2016, STG holds over 200 global brands and a number of strong local brands and employs 7,650 people, mainly in the Dominican Republic, Honduras, Nicaragua, Indonesia, New Zealand, Australia and the U.S.
Mac Baren Tobacco Takes over Berlin-based Planta Tabak-Manufaktur Brand Portfolio
tablished family business, and we are
SVENDBORG, DENMARK—Mac
a difficult but deliberate step. After 63
Planta Tobacco’s popular pipe tobacco
Tobacco announced an agreement to
years and three generations of successful
and fine cut brands including Danish
acquire the outstanding pipe and fine-
ownership, the family-owned company
Black Vanilla, Holger Danske, Cellini,
cut tobacco brands from Planta Tabak-
stopped producing tobacco in Berlin on
PL88, and Cheetah now be produced
Manufactur’s traditional portfolio.
31st August 2019. “With the many chal-
by Mac Baren Tobacco Company.
Baren
“The Planta portfolio includes a num-
lenges our family has faced over the past
very happy that the legacy of our parents and grandparents will continue.”
Going forward, international sales
ber of very strong and internationally
few years and the ever-increasing require-
for Planta tobacco will be managed
renowned brands that strengthen the
ments of the EU Tobacco Directive, we
directly by Mac Baren Denmark, while
product range of the Mac Baren Tobacco
have decided to withdraw from tobacco
German distribution will remain in Berlin
Company,” said Mac Baren CEO Simon
production,” said Obermann.
at Unitas Tabakfabrik GmbH, a Planta
Sophus Nielsen. For Nils Obermann and Lukas Stiller,
“Mac Baren’s offer to acquire our
sister company that was included in
business required little consideration
the transaction. Obermann has agreed
the young managing directors of the tradi-
and we quickly agreed,” said Stiller.
to stay with the business as Managing
tional Kreuzberg company, the move was
“Like us, Mac Baren is an old, well-es-
Director with Unitas.
TPI 4
Q3 2019
Photos: Wolfgang Helm/Messe Dortmund
{Tradefair Roundup}
InterTabac 2019 Draws Record 13,800 Visitors
many challenges in the future. The con-
Improved services, a new accompanying programme, and a modernised look set higher new standards at the InterTabac and InterSupply trade fairs. »CONTRIBUTED REPORT
therefore incredibly important for whole-
I
densed overview of all tobacco product and ancillary product segments as given by InterTabac at the Dortmund location is salers and retailers in today’s world.” Classic segments continue to be a central element. Fans of classic tobac-
nterTabac, the world’s largest trade
Almost 58 per cent of the visitors
co products and pipes and cigars got
fair for tobacco products and smok-
came from Germany. “German partic-
their money’s worth. Exhibitors in Halls
ing accessories, was again the most
ipants primarily included classic tobac-
4 to 7 showcased additive-free ciga-
important meeting place for national
conists, explained Sabine Loos, CEO of
rettes, high-quality pipes, and interest-
and international representatives of
Westfalenhallen Unternehmensgruppe
ing up-market products from small cigar
the tobacco industry, retail and whole-
GmbH. “The interest in new topics and
manufacturing businesses.
sale sectors this year from 20 to 22
trends and the personal exchange of in-
The satisfaction of the tobacco retail
September and boasted about 40,000
formation prevailed as usual. That is not
trade with InterTabac 2019 was under-
sqm of exhibition space in the halls of
surprising because only InterTabac gives
lined by Steffen Kahnt, Director of the
the Dortmund Exhibition Centre.
retailers and wholesalers the opportuni-
German Association of Tobacconists. “In-
Besides numerous German visitors
ty of exploring and testing the product
terTabac has once again given the retail
from the key target groups and sec-
width and depth and making contacts
sector an overview of all segments of the
tors—including classic tobacconists
with established and new customers.”
national and international tobacco world.
petrol stations, and kiosk retailers—inter-
Thomas Schäfer, Managing Director
It continues to be an indispensable dia-
nationality was again an important fea-
of the Tobacco Trade Association of North
logue, information and order placement
ture of the trade fair. About 42 per cent
Rhine Westphalia added that, “Year after
platform, especially for tobacconists. This
of the visitors came from abroad: The vis-
year, InterTabac expands its reputation as
central meeting place gives a comprehen-
itors’ home countries included the USA,
the world’s flagship trade fair of the to-
sive overview, especially of the classic ci-
China, Chile and South Africa. European
bacco industry and as the meeting place
gar, cigarette and pipe segments, to make
home countries were primarily Spain,
of the tobacco family. And that applies
the retailers’ product portfolios viable for
Italy, France, The Netherlands and Turkey.
again this year. The trade must overcome
the future,” SteffenKahnt said.
TPI 6
Q2 2018
{Tradefair Roundup} NGP Segment Popular Again
by the guests. Sabine Loos explained the
Improved Services for Fair Visitors
Building upon growing momentum in
background of the new offer: “Thanks to
Besides the innovative accompanying
previous years, there was great inter-
the accompanying programme, InterTa-
programme, new services also made the
est in Next Generation Products (NGP),
bac is now much more than an import-
trade fair even more attractive, including
which this year filled the entire West-
ant order placement platform. It sets
a choice of exclusive hotel packages and
falenhalle event arena and Halls 1 and
new standards for the national and inter-
an improved shuttle service to nearby
2 of the Dortmund Exhibition Centre.
national exchange of trade information.
airports and last but not least the new
Trade visitors purused the latest e-cig-
Accordingly, visitors can ideally prepare
modern, functional and light-flooded
arette hardware, tested innovations in
and pave the way for future business ac-
4,500 sqm North Entrance.
the vape segment, and sampled popular
tivities here.”
Interested exhibitors and trade vis-
smokeless products such as chewing
One of the many exciting lectures
itors can already note the date in their
tobacco. “The NGP segment continues
was futuristic: Dr Felix Stehle from the
diary for next year’s InterTabac and In-
to show a positive development and
Technical University of Dortmund gave
terSupply. The two trade fairs will take
that was also evident from this year’s In-
an overview of the “Generation of a
place from 18 to 20 September 2020 –
terTabac trade fair,” noted Loos.
nicotine-free, nontransgenic tobacco
of course again in the halls of the Dort-
A similar situation could be seen on
plant” topic. With the aid of state-of-
mund Exhibition Centre.
the shisha stands in Hall 8 and a part of
the-art scientific methods, researchers
Hall 6. “The pleasure of smoking shisha
succeeded in modifying the genes of
as a new pastime is very popular. The
a tobacco plant in such a way that its
exhibitors took this trend into account
leaves no longer contain any nicotine.
and showcased their diverse product
These results open up the opportuni-
range that fulfils all wishes of the con-
ty for the tobacco industry to produce
sumers,” said Loos.
nicotine-free cigarettes. The “Cigar &
TPI
Nicaraguan cigar maker Joya de Nicaragua launched its new limited production “ambassador” cigar, Número Uno, limited to only 1,500 boxes a year for the global market.
Rum Pairing” event where internation-
New Events Expand InterTabac
al premium rum brands were paired
The premiere of the new diverse accom-
with Nicaraguan cigars to give the par-
panying programme that supported this
ticipants a very exciting taste experi-
year’s trade fair was very well received
ence was very popular.
2019 Cigar Trophy Winners
BEST CIGAR BRAND Cuba: Cohiba Dominican Republic: A. Fuente Honduras: Plasencia Cosecha 146 Nicaragua: Perdomo Habano Bourbon Barrel Aged BEST CIGAR Cuba: Cohiba Siglo VI Dominican Rep.: Davidoff Winston Churchill The Late Hour Churchill Honduras: Eiroa The First 20 Years 54 × 6 Nicaragua: My Father La Opulencia Toro U.S.A.: Tatuaje 15th Anniversary Habano Rosado Belicoso Fino
The Cigar Trophy Awards are one of only a few honors in the industry that are determined by consumer voting, first by nominating candidates in five different categories (Best Brand, Best Cigar, Best Value, Best Accessory, and Best Lounge), then voting for a winner among the top five finalists within each category. In addition, four additional awards are selected by staff members. The 2019 awards were presented by Cigar Journal Magazine on Friday, 20th September, at the Westfalenhallen Dortmund Conference Center.
TPI 8
Q2 2018
BEST VALUE Cuba: Saint Luis Rey Dominican Republic: E.P. Carrillo Encore Honduras: Villa Zamorano Nicaragua: A.J. Fernandez New World Cameroon BEST CIGAR ACCESSORY: Boveda BEST CIGAR LOUNGE: Kempinski Cigar Lounge by Zechbauer CHARITY & COMMUNITY: Toast Across America OUTSTANDING ART: DeArt Italian Fine Furniture AMBASSADOR: Cigar Rights of Europe LIFETIME ACHIEVEMENT: Rocky Patel
Tobacco Products INTERNATIONAL
SUBSCRIBE
NOW! Published quarterly, Tobacco Products International is designed for tobacco product importers, exporters, distributors, wholesalers and “THIS IS US” CELEBRATING DOMINICAN CIGARS retailers who are looking for new products and services. THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING
Quarter 2, 2018
The Dominican Republic’s association of leading cigar makers, Procigar, hosted the 11th Annual Procigar Festival where it welcomed Royal Agio Cigars as its newest member.
THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING
Quarter 3, 2018
INTERTABAC MARKS 40 YEARS Dortmund trade fair continues to expand its global reach and merchandise depth.
PLUS: • James J. Fox Brings La Casa del Habano to Harrods
THE AUTHORITY ON TOBACCO DISTRIBUTION AND RETAILING
Quarter 1, 2018
FESTIVAL DEL HABANO AT 20
Excitement at Cuba’s Habanos Festival 20 Años was boosted by strong Habanos S.A. financials for 2017, thanks to the surging Chinese market. PLUS: • Arnold André is Once Again 100% Family Owned • Cohiba Atmosphere Opens in Sofia, Bulgaria
To Subscribe: Call: +1-212-391-2060 Email: info@lockwoodpublications.com PLUS: • Italy’s Toscano Cigar Turns 200 • Habanos Terrace Opens in Lugares, Italy
Subscription Rates: Prices in USD
1 year $15
2 years $24
www.tobaccoproductsmag.com
{Brand News} CAO Hommage to Nicaragua from STG Scandinavian Tobacco Group (STG) has created CAO Hommage to Nicaragua, a limited edition 58 ring gauge by 6 inch Gran Toro with a unique blend for select international markets. The cigar will be released in late 2019 in select countries. The cigar is made at Scandinavian
Nicaraguan growing areas— Jalapa,
Davidoff’s Camacho Connecticut Distillery Edition
Condega, and Estelí—along with Honduran filler, Connecticut broadleaf
This fall, Davidoff is bringing one of its
binder, and Ecuadorian Habano wrapper.
new Camacho Distillery Edition cigars
Tobacco Group Estelí in Nicaragua, utilizing a filler blend that includes tobaccos from three major
Custom packaging was also created for this limited edition, including a oneof-a-kind ring, foot band, and sleek matte white boxes of 10 cigars. According to Scandinavian Tobacco Group, the cigar will be available in The
to European markets. Camacho Connecticut Distillery Edition is a variation of one of
Netherlands, Belgium, Luxembourg, France, and Spain as well as select Asian markets.
Camacho’s best-selling core blends
Scandinavian Tobacco Group, Ltd., Denmark, Web: caocigars.com.
expressed in a deeper, more complex and unique flavor profile by aging the company’s proprietary Corojo tobacco
Villiger Cristal Premium Filtered Cigarillos
from Honduras in charred bourbon barrels for a minimum of six months.
The House of Villiger presents Villiger Cristal, a new brand created to deliver “plea-
The blend is represented in a 50 x 6
sure in a class of its own.” Company chairman Heinrich Villiger spent a lot of time
Toro format.
refining and sampling until he had the perfect tobacco mixture, the Swiss company
“This is boldness meets bal-
explains. The result: two exquisite filter cigarillos made from the best tobaccos, dis-
ance, with a bourbon influence,”
tinctive through their unique taste and quality. Two varieties are offered.
the company explains. “We put a
Villiger Cristal Original Blend, in its blue shoulder box, targets consumers who
complex spin on an old classic.”
like the taste of pure tobacco, with top-grade
The bourbon barrel-aged Corojo
filler made from Cuban tobaccos.
tobacco is then combined with
Villiger Cristal Special Blend, with its
Aleman Ligero from Honduras
magenta-colored package, is dedicated to lov-
and Nicaragua, Honduran Corojo
ers of flavored cigarillos. Its “exquisite”
binder, and Ecuadorian Connecticut
aroma promises an “extraordinary”
wrapper to create this special vari-
smoking experience.
ation of the Camacho Connecticut
To accompany these luxury cigarillos—which are highlighted by laser
blend. The cigars are presented in 20 -count lacquered boxes.
designs at the cigarillo’s filter end—Villiger created
Davidoff says the Camacho
premium 20-count shoulder boxes featuring spar-
Ecuador Distillery Edition is “new
kling highlights. Suggested retail, 7.50€.
school” bold with a vintage twist, a
In promotional materials, Villiger tempts consumers to “make a conscious deci-
powerful blend offering a wide variety
sion for extravagance and elevate your smoking experience to the next level. Spoil
of complex flavors. It’s a smoke that
yourself with a Villiger Cristal, sit back, and let your mind wander. Life is too short to
looks as good as it tastes.”
postpone indulgence.”
Oettinger Davidoff AG, Basel, Switzer-
Villiger Söhne AG, Pfeffikon, Switzerland, Web: villigercigars.com.
land, Web: oettingerdavidoff.com.
TPI 10
Q3 2019
Royal Agio Cigars Releases Ernest-Perez Carrillo Collaboration, Dueto, in Europe Royal Agio Cigars has brought its Balmoral Serie Signatura Dueto, the first handmade cigar blend released under its collaboration-based Balmoral “Signature Series” platform, to Europe following its US launch last year. For this first release, Royal Agio Cigars CEO Boris Wintermans teamed up with the legendary Dominican Republic cigar maker Ernesto Pérez-Carrillo to deliver a special, one-of-a-kind sensorial experience. Blended by Pérez-Carrillo at his Tabacalera La Alianza factory in the Dominican Republic to “excite the senses,” Dueto captures the complex intersection of two distinct premium cigar blending signatures. Incorporating each cigar makers’ hand-selected, preferred tobaccos, this cigar blend delivers the signature elegant robustness of Pérez-Carrillo cigars and the signature balance of sophisticated complexity and smoothness of Wintermans’ Balmoral handmade cigars. “I want to push the boundaries of what can be discovered in premium cigar blending, and it is this desire that inspired the creation of the Balmoral Serie Signaturas and initial conversations with Ernesto,” said Wintermans. Added Pérez-Carrillo, “For the both of us, it’s never been about big volume. It’s just the opposite. It’s always been about the underlying passion that drives us to create new and unique cigar blends that will inspire cigar smokers.” Royal Agio Cigars, Duizel, The Netherlands, Web: agiocigars.com.
Balmoral Serie Signatura Dueto showcases extensively aged Nicaraguan and exclusive, stalk-cut Brazilian Mata Norte fillers; an Estelí, Nicaragua binder, and a robust, yet elegant Nicaraguan wrapper from Jalapa. The line, which is now available in Europe, is presented in five vitolas, packaged in 10-count boxes—Robusto 5 x 50; Ovación (Figurado) 5 1/2 x 50; Gran Toro 6 x 52; Gordo 6 x 60; and Churchill 7 x 49.
Tobacco Products International
TPI 11
{Showcase} Elie Blue Marquetry Jet Flame Cigar Lighters The marquetry decorations on Elie Bleu’s J-14 torch flame lighter models replicate the marquetry featured on its Alba humidor collection, providing
sales as the company continues to expand its concept of matching families of
Zino Z-Collection Adds Humidors and Leather Cases
accessories. The meticulously crafted inlaid designs are made from small pieces
The Z80 humidor comes in a modern
of variously colored wood, painstakenly cut and assembled entirely by hand in
design combining a wooden look with
the grand French tradition known as “element by element” marquetry. Lighters
fresh accent colors. The result are strik-
feature all-brass case construction, the company’s exclusive cigar diamond jet
ing blends: natural oak/red, black oak/
burner system technology, piston cap operating system, side ignition, view tank
mint, gray oak/cyan. The humidors are
window with level gauge, half moon flame adjuster, fuel cover, and rhodium
equipped with the proprietary Zino slim
finishes. Four different styles are offered—Black, Yellow, Blue, or Red lacquer—
self-regulating humidification system
each featuring its own unique inlaid marquetry design. Suggested retail, €295.
that provides optimal storage conditions
Elie Bleu S.A., Gennevilliers, France, Web: eliebleu.fr.
for up to 80 cigars, ensuring 70-72% rel-
retailers an opportunity for either standalone or add-on
ative humidity. Fully lined with premium Okoumé, an odorless and tasteless wood to prevent flavor transfer to cigars and equipped with a tray and dividers; this eye-catching, mid-size humidor is an easy answer to keeping cigars in perfect condition.
Sporty Edgar Pipe from Vauen Technical, dynamic, and extraordinary: the sporty Edgar pipe is a cut above. The ribs of the ceramic composite bowl ring on this solid briar pipe have the same effect as
Made by hand of cowhide leather and lined with vibrant colors that match the humidors, the Z-Collection cigar
the cooling fins on a motorbike cylinder. Thanks to their heat dissipation capabilities,
cases will keep two
these fins literally make the smoking experience cooler. For fans of bent pipes, the
cigars up to
purist design has also been interpreted in a curved shape. Designed and hand made
a 54 ring
in Germany, features acrylic fishtail mouthpiece with silver ring, finished in “white
gauge
dot” quality in a choice of sleek white or rich brown stain. Comes in a gift tin.
humidi-
Vauen Vereinigte Pfeifenfabriken Nürnberg GmbH, Nuremberg, Germany, Tel:
fied for
+(49) 911 4243680, Fax: +(49) 911 4243668, Email: info@vauen.de, Web: vauen.de.
15 days. Its ergonomic shape with adjustable length provides ultimate comfort in
Peterson of Dublin Christmas Pipe 2019
the hand. These hand-made cigar cases are available in two sizes: XL-2 to fit up
Peterson’s special edition Christmas pipe for 2019 presents 12 of their most pop-
to a Toro format, and R-2 that fits up to a
ular shapes in a warm and subtly festive palette finished in a rugged, burgundy
Robusto format. The cases are available in
rustication, topped with a bright copper mount, and fitted to a
colors matching Davidoff’s new Z80 humi-
cumberland patterned acrylic mouthpiece.
dors. €495 suggested retail price.
Peterson of Dublin, Dubline, Ireland,
Oettinger Davidoff AG, Geneva,
Email: sales@peterson.ie, Web: peterson.ie.
Switzerland, Web: davidoff.com.
TPI 12
Q3 2019
