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  • PCA Partners to Offer Cigar Retailers Financial Services

    PCA Partners to Offer Cigar Retailers Financial Services

    The Premium Cigar Association announced a new preferred vendor partnership with JeisonGermanGroup, in collaboration with NewtekBank, to offer specialized banking and lending solutions tailored for premium cigar retailers.

    Led by CEO Jeison German, the firm brings financial expertise and custom strategies to support PCA members, with access to services including business banking, loans from $5,000 to $15 million, POS and payment processing solutions, and support for insurance, payroll, HR, and IT.

    This initiative aims to strengthen financial stability and support business growth within the premium tobacco industry.

  • Louisiana Caps Cigar Taxes at 50 Cents Each

    Louisiana Caps Cigar Taxes at 50 Cents Each

    Louisiana joined Arkansas and North Carolina in implementing a cigar tax cap, putting a 50-cent ceiling on each cigar. Passed by the state legislature and signed into law by Governor Jeff Landry, the measure will take effect January 1, 2026.

    Sponsored by Rep. Marcus Bryant, the law applies to cigars wholesale priced at $2.50 or more, which includes virtually all premium handmade cigars. Those under that threshold will continue to be taxed at 20% of the wholesale price.

    The Premium Cigar Association (PCA) praised the legislation, calling it a victory for small businesses and cigar consumers. PCA, which held its annual trade show in New Orleans in 2025 and returns for 2026, provided testimony and advocacy support alongside local Louisiana tobacconists and distributors.

    “This positive development in Louisiana is yet another indicator of how the state is supporting its small business community and their patrons,” said PCA executive director Joshua Habursky. “The economic impact of the New Orleans-based trade show was shared with the legislature, as was the positive impact of cigar tax caps throughout the nation. We appreciate the support of the legislature and Governor Landry with this positive step.”

  • PCA Survey Sees Improvement for Manufacturers

    PCA Survey Sees Improvement for Manufacturers

    The Premium Cigar Association released the results of its First Quarter 2025 survey this week, asking 112 retailers and 24 manufacturers for their opinion on several topics. In comparing 2024 to 2023, 51% of the retailers said they did better, 29% the same, and 20% did worse. For manufacturers, 67% did better, 17% the same, and 17% worse.

    In an open-ended question asking what retailers would like to communicate to manufacturers to help sell product, the nine most common answers were listed, including controlling moderate price increases and shipping, limiting high-end offerings and creating more “economy cigars,” better education/communication, fixing supply issues, and stopping the “what’s new” mentality and focusing on core lines.

    See the entire survey here.

  • U.S. Premium Cigar Imports Top 430M

    U.S. Premium Cigar Imports Top 430M

    The Cigar Association of America (CAA) released its annual report today, indicating that U.S. imports of handmade, premium cigars rose 0.9% last year, going from 426.3 million in 2023 to 430 million in 2024. It appears that the pandemic created a second cigar boom, as imports have exceeded 400 million units for four years in a row, a 27% increase from 2019’s 338 million cigars. The market has cooled slightly, however, from its record years of 2021 and 2022, where imports were 453.9 million and 464.5 million, respectively.

    Nicaragua accounts for 58.8% of U.S. cigars, shipping 253.1 million cigars in 2024, a 2.7% increase over the previous year. The Dominican Republic shipped 106 million cigars, a 1.8% decrease from 2023, followed by Honduras’ 67.4 million cigars, a 3.3% increase. Those three countries account for 99% of the U.S. cigar supply.

    Costa Rica saw a 44.9% jump in the number of cigars it sends to the U.S., and at 2.5 million units is the only other producer to top the 1 million mark.

    The CAA generates this data from the U.S. Census Bureau, the U.S. Customs Services, and from cigar companies themselves. The numbers include estimates that remove large, machine-made cigars from the premium category.

  • Bill Aims to Exempt Premium Cigars from FDA Control

    Bill Aims to Exempt Premium Cigars from FDA Control

    A bill introduced on the Congressional House floor Friday would exclude cigars from the broader “tobacco product” categorization defined by Federal Food, Drug and Cosmetic Act, thereby exempting premium, handmade cigars from FDA regulation.

    Under the new bill, premium cigars would follow the same definition Judge Amit P. Mehta recently established in the cigar industry’s lawsuit battle with the FDA. This definition of a premium cigar would include the following parameters:

    • Wrapped in whole tobacco leaf  
    • Contains a 100% leaf tobacco binder  
    • Contains at least 50% long-filler tobacco
    • Is handmade or hand-rolled
    • Has no filter, nontobacco tip, or nontobacco mouthpiece  
    • Does not have a characterizing flavor other than tobacco  
    • Contains only tobacco, water, and vegetable gum with no other ingredients or additives  
    • Weighs more than six pounds per 1,000 units.

    The Federal Food, Drug and Cosmetic Act essentially authorizes the FDA to regulate food, drugs, medical devices, and cosmetics. These broad categories ultimately include “tobacco products,” which are broadly defined in the Act as “any product made or derived from tobacco, or containing nicotine from any source, that is intended for human consumption…” H.R. 2111, being brought forth by Rep. Byron Donald, would amend this portion of the Act.

    “Back in January, the cigar industry notched yet another big victory against the FDA in the longstanding battle over regulating cigars,” Garrett Rutledge wrote for Cigar Aficionado. “The United States Court of Appeals for the District of Columbia shot down the FDA’s appeal, which sought to overturn the 2023 ruling by Judge Mehta that ruled against the FDA’s application of the Deeming Rule on the cigar industry. The ruling spared the industry from a number of draconian regulations, but it did not fully remove the FDA’s ability to regulate premium cigars. H.R. 2111 aims to take that next step in excluding premium cigars from FDA regulation.”

    “Congressman Donalds’ leadership in introducing this bill is a victory for premium cigar manufacturers, small businesses, and the countless American consumers who appreciate these handcrafted products,” says Mike Copperman, executive director of Cigar Rights of America. “This legislation is not just about regulation, it’s about preserving an industry and ensuring that premium cigars are treated fairly.”

    Donalds introduced similar legislation during the previous Congressional session, and while it gained 13 co-sponsors, it stalled in the committee stage largely due to the election.

  • JTI Sees Shift to Cheaper Cigarettes Continuing

    JTI Sees Shift to Cheaper Cigarettes Continuing

    To combat decreasing volumes, many cigarette companies are forced to increase prices to keep the needed revenue margins. That, combined with continuously rising federal and state taxes, has made buying a pack of cigarettes in the United States quite expensive. As a result, many smokers are leaving traditional premium name brands and trading down to the value and super-vale segment of the market.

    Japan Tobacco International’s finance chief Vassilis Vovos said he expects pricier brands to continue losing ground even as affordability improves, and that the shift toward cheaper cigarette brands in the U.S. will top 42% of the market by 2027.

    JTI completed the acquisition of U.S. tobacco company Vector Group last year, which pushed its share of the super-value segment to 40% by the fourth quarter of 2024.

    “This is a hard trend and we see it continuing over time,” Vovos said, adding steep price increases will continue to push consumers to trade down, a trend visible in many markets where big price gaps emerge.

    Industry giants such as Altria and BAT hope the trend away from premium brands is temporary and will recede as economic pressures ease. BAT, which does not produce a product for either of the value markets, saw its U.S. volume fall 10.1% last year.