Legal Archives - Cigar Life Guy

Small Business Champion Dr. Gaby Kafie

Posted on September 24, 2024 by Staff

Dr. Gaby Kafie has been living the cigar life since he smoked his first cigar as a teen. He is also the founder of the Boutique Cigar Association and Kafie Cigars and Coffee. Since then, he has been advocating for family-run cigar businesses. Kafie spoke with Cigar Life Guy about the reflective aspects of a good cigar. He spoke of cigar-smoking traditions and rituals. And he spoke of his ongoing efforts to promote and protect the rights of small cigar lines.

Gaby Kafie: First Premium Cigar Experience

Cigar Life Guy: Tell me about your first premium cigar experience.

Dr. Gaby Kafie: My first premium cigar experience is a cherished memory that dates back to the summer of my 18th year, spent in Honduras with family. On a particularly memorable weekend, we gathered at a beach house owned by relatives on the Pacific coast. It was a perfect setting for a family rendezvous filled with food, drinks, and games to make the most of our time together.

During this gathering, I was with my father, my brother, and a cousin who was an avid cigar aficionado. Early in the evening, as everyone was preparing for a poker game, he gifted me one of his favorite cigars. I felt a unique sense of inclusion, as if I were now part of the adult circle. Although, my shyness around my father led me to seek a more private spot to enjoy the cigar. I wandered down the boardwalk to a secluded patch of sand atop a hill, where I could relax undisturbed.

This being my first cigar, I carefully bit off the cap and lit it with matches I had taken from the poker table, taking my time to fully ignite it. The cigar was a Hoya de Monterrey Honduras edition, highly popular then and a favorite of my cousin’s. Smoking it was an incredible experience. The flavors were rich and relaxing. The serene backdrop of the Pacific Ocean under a moonlit sky enhanced the moment immeasurably. The setting was so captivating it felt almost surreal.

About 20 to 30 minutes into the experience, I began to feel dizzy, prompting me to slow down and savor the moment more gently, or “put it in cruise control,” as the saying goes. There was no rush — just the enjoyment of a truly splendid weekend. It’s an evening I’ll never forget, marked by a significant rite of passage surrounded by family and the tranquil beauty of nature.

Cigar Culture

Cigar Life Guy: You are a retired physician. The medical and cigar worlds don’t always go together. What drew you to the cigar culture?

Dr. Gaby Kafie: This question is thought-provoking, as medicine and cigars don’t typically overlap. Interestingly, during my time in medical school, I first noticed how many of my colleagues sought relaxation through various means, including indulging in cigars and spirits, to decompress from the high stresses of our profession.

On a more serious note, it’s essential to acknowledge that premium cigars have historically not been a significant concern within the medical community, mainly when used in moderation. Many intellectuals and professionals appreciate the refined pleasure of a premium cigar or the enjoyment of finely aged pipe tobacco, neither of which are intended to be inhaled.

For me, cigars offered a unique form of solace during my medical training. On those quiet nights, when everyone else was asleep, and I faced hours of complex medical texts, enjoying a premium cigar provided not just a company but also improved my focus and concentration. The ritual of smoking, the flavors, and the very act of taking a break helped me digest the dense information more effectively.

Throughout my career as a physician and later as a premium cigar manufacturer, I’ve spent considerable time researching the effects of moderate cigar smoking on the human body. My findings align with the broader consensus that, when not abused and enjoyed in moderation, the risks associated with occasional cigar smoking are minimal to none.

Thus, my draw to cigar culture was not just about the cigars themselves but about the ritual, history, and camaraderie accompanying this ancient tradition. It’s about moderation and appreciation of the craft, which can enhance moments of reflection and relaxation when respected.

The Benefits of a Good Cigar

Cigar Life Guy: What is your take on cigars and their potential benefits?

Dr. Gaby Kafie: This question invites a nuanced comparison that spans various indulgences, like premium cigars, chocolates, or wines, each bringing its form of pleasure and potential benefits, albeit not always in the health sense.

Much like a fine glass of wine or a particular type of Swiss chocolate, premium cigars are part of a lifestyle. Those who appreciate the finer aspects of life and the freedom to engage in a storied tradition embrace them.

The history of cigar smoking, which traces back over generations, reflects a personal choice and a cultural heritage. For instance, in the early 1900s, there were over 6,000 cigar shops in the United States, a testament to its popularity and integration into social norms.

While the industry is heavily regulated (or under threat), including stringent age verification, the essence of cigar culture endures. For many, including myself, cigars represent more than just smoking; they are a conduit for social interaction, fostering conversations and camaraderie across generations. Sitting down to enjoy a cigar can open the door to dialogue. It can also offer a moment of relaxation, and build connections beyond the immediate experience.

As for potential benefits, it’s important to clarify that while cigars are not a health product, they offer psychological and social benefits. Engaging in a thoughtful, leisurely smoke can provide a break from the stresses of daily life, allowing for moments of reflection and a sense of communal bonding. These aspects are often overlooked when discussing cigars, but they play a significant role in why many people cherish this tradition.

Like any adult indulgence, the key to cigars is moderation and understanding. Cigars, when enjoyed responsibly, can enhance social gatherings, facilitate deep conversations, and serve as a cherished ritual that enriches one’s lifestyle.

Gaby Kafie: Tradition and the Cigar Industry

Cigar Life Guy: Your family has a long history in Central America. So why is tradition so important in the cigar industry?

Dr. Gaby Kafie: Tradition is deeply ingrained in the cigar industry, and its importance can’t be overstated. In many ways, it is the very foundation on which the industry has been built and continues to thrive.

For my family, the Kafie family, tradition is not just a concept but a guiding principle that dictates how we conduct ourselves in business and life.

We are deeply rooted in Central America, a region rich in history and culture, which has significantly shaped the values we cherish and pass down through generations.

Tradition in our family goes beyond preserving customs. Tradition is about upholding a legacy of integrity, hard work, and commitment to excellence. These values have been imbued in us from generation to generation, ensuring that every family member strives to contribute positively to our legacy and the world.

Our commitment to tradition reflects how we approach our businesses, including the cigar industry. Much like our family, the premium cigar industry thrives on the strength of its traditions. It is an industry largely driven by families who have persevered through centuries, maintaining high standards and a dedication to craftsmanship passed down through generations.

Each product we create, whether cigars or coffee, carries our family name— a symbol of quality and trust. This is not just a mark of ownership but a promise of the integrity and the hard-earned reputation that comes with it. In this industry, a name is not just a brand- it’s a representation of history, culture, and continuity.

Thus, tradition in the cigar industry is crucial. It connects the past with the present and paves the way for future generations. It embodies the values, ethics, and principles that have sustained these great families, including ours, enabling us to produce products that people enjoy and trust. This deep respect for tradition is one of the primary reasons I was drawn to the premium cigar industry. It remains a passion deeply integrated into my life and legacy.

The Boutique Cigar Association.

Cigar Life Guy: You are the founder of the Boutique Cigar Association. Tell us about this organization and what it does. Particularly, we’d love to know how it supports and defends the rights of small cigar lines against FDA regulations.

Dr. Gaby Kafie: As the founder of the Boutique Cigar Association (BCA) in 2016, I saw a need to fill a significant gap in the premium cigar industry. This gap concerned disseminating knowledge essential for starting and sustaining a successful cigar company. It was a knowledge base traditionally held closely by a few established families. Recognizing the importance of sharing this wealth of information, I felt a profound responsibility to help others who aspire to make their mark in this industry.

The BCA was established to support, educate, and uplift small cigar companies. We have successfully created a platform where emerging businesses can access crucial industry knowledge through a structured curriculum. That includes regular seminars featuring experts. These experts discuss important topics like trademark law, cigar importation, licensing, and distribution agreements. All these topics are vital for navigating the complexities of the cigar business.

One of our most significant achievements is the establishment of the Boutique Cigar Pavilion at the PCA Trade Show. This initiative provides our member companies with a fantastic opportunity for exposure at one of the world’s largest gatherings for premium cigars. This pavilion has become a permanent fixture at the show, greatly benefiting our members with increased visibility.

The BCA has grown to include over 35 member companies on the advocacy front. That allowing us to form a unified voice that actively participates in legislative discussions. This collective effort is crucial for protecting the interests of boutique cigar businesses against often stringent FDA regulations. By collaborating with the Premium Cigar Association and Cigar Rights of America, we can better defend and promote the rights of small cigar lines at both state and federal levels.

Starting and leading the Boutique Cigar Association has not been an easy journey. The fulfillment I derive from seeing small, family-owned businesses flourish in this competitive environment makes all the challenges worthwhile. My joy and contentment come from serving these passionate entrepreneurs. I also enjoy helping them achieve their dreams within the premium cigar industry.

Cigar Industry Challenges Dr. Gaby Kafie Faces

Cigar Life Guy: What is the cigar industry’s biggest challenge today?

Dr. Gaby Kafie: The biggest challenge facing the premium cigar industry today, as I see it, is the presence of significant barriers to entry for new brands, often perpetuated by an industry that, at times, is resistant to welcoming new players. And this is a critical issue. The vitality and innovation of our industry depend on the continuous influx of new ideas and participants.

In my experience within this industry, I’ve observed a certain isolationism from established players who seldom reach out to help or support newcomers. So, this is paradoxical considering the communal and familial ethos that cigars traditionally symbolize.

At the Boutique Cigar Association, we deliberate on how we can better support family-owned businesses. We help them gain market share and succeed. Our goal is not just to thrive individually but to foster an environment where every industry member, new or old, feels welcomed and supported.

Another significant challenge is navigating the regulatory landscape set by the FDA. It’s not a question of if but when and how we will be regulated. The key is ensuring these regulations are fair and navigable, not punitive measures. It’s important they not drive small players out of business. It’s crucial for companies, whether big or small, family-owned or multinational, to unite and advocate for reasonable and manageable regulatory frameworks.

For the premium cigar industry to flourish, it must cultivate an inclusive and mutually supportive environment. It must also ensuring all stakeholders, especially the newcomers, have the resources and guidance needed to thrive.

Next Up for Dr. Gaby Kafie and the Kafie 1901

Cigar Life Guy: What’s next for you and Kafie 1901?

Dr. Gaby Kafie: Thank you for this engaging question! At Kafie 1901, we are continuously inspired by our rich family heritage. That includes over 100 entrepreneurial and professional members across Honduras, Central America, and the United States. This legacy drives our commitment to excellence and innovation in everything we do.

We’re currently at an exciting juncture, having recently acquired the domain www.kafie.com. Over the next few months, we plan to develop this website into a comprehensive portal representing The Kafie Companies.

This platform will showcase our diverse ventures and testify to our family’s enduring entrepreneurial spirit. Our approach is to create something enduring. We design every project to last a decade and easily transition to the next generation.

Specifically for Kafie 1901, we are embarking on a few key initiatives. First, rebranding of our coffee products. We are rebranding our coffee line, with the refreshed products expected to be available by mid-summer. This rebranding will align our coffee offerings more closely with our core brand values and aesthetics. Next comes the development of a new premium cigar blend.

We have meticulously worked on a new cigar blend for the past two years. So, we craft this blend with the utmost care to meet the high standards our customers expect from Kafie 1901. We anticipate launching this new premium cigar product early in 2025.

We are thrilled about the future and are deeply grateful for the opportunity to discuss our journey. Thank you for your interest and support.

Follow Dr. Kafie on Instagram and check out the latest from Kafie Cigars here.

Photo credit: Kafie 1901

DAV’s Armen Caprielian Talks Cigars

Posted on August 19, 2024 by Staff

Armen Caprielian, managing partner of DAV Cigars, may have gotten into the cigar industry by chance, but he’s been living the cigar life since he was seventeen. Caprielian, a real estate broker, is also the president of the Boutique Cigar Association. He advocates for and promotes family-owned companies. Caprielian talked with Cigar Life Guy about giving a voice to boutique lines, expanding the cigar market to the Middle East, and what sets DAV apart from mass-market manufacturers. With his passion for the craft and commitment to growing boutique brands, Caprielian shared insights on the challenges and opportunities in the industry.

First Premium Cigar Experience

Cigar Life Guy: Tell me about your first premium cigar experience.

Armen Caprielian: I remember my very first premium cigar very well. It was many moons ago when I was a 17-year-old camp counselor. Some of the more experienced cigar smokers asked if I would also like to smoke one. It was exciting because up until then, I would be around certain family and friends who smoked cigars. It always intrigued me. Additionally, I enjoyed the smell of cigars. The cigar I smoked was an Avo No.2. I have been hooked ever since!

Armen Caprielian: Starting in the Cigar Industry

Cigar Life Guy: How did you get into the cigar industry? What did you do before, and how does it help inform what you do now?

Armen Caprielian: I got into the cigar industry by chance. My current partner and I attended a conference and took a short break. We went outside to enjoy a cigar, and a conversation ensued. We both expressed a fascination with the industry and thought about what it would be like to be in the business.

Things moved along quite rapidly after that initial conversation. Until then, my occupation was and still is as a real estate associate broker at Laffey Real Estate in New York. Being in the real estate business gave me a huge advantage while I was getting into the cigar business because I understood full well what it takes to be an entrepreneur, to count on yourself, and to bring in business. More importantly, I understood how to be a salesperson and to interact with people from all walks of life.

Getting a Start and the BCA

Cigar Life Guy: You are the Boutique Cigar Association (BCA) president. Describe some of the work you do.

Armen Caprielian: The BCA is extremely close to my heart, and there are many reasons for this. The BCA’s primary aim is to create a platform for family-owned, boutique companies where they can tell their unique stories and showcase their incredible products.

We also look to educate our members. We do this through monthly educational sessions at our meetings, usually presented by an expert on that particular topic. Another important mission is to guide our members concerning tobacco regulations.

Something else we are so very proud of is our relationship with the PCA and InTerTabac. There was a boutique cigar pavilion at the PCA trade show under the BCA banner for the first time in history. There were 15 companies within the pavilion in the past two years. We are looking to have an even bigger presence next year.

The PCA also invited us to participate in last summer’s panel discussion in the Capitol Building hosted by the Cigar Caucus. It was an extremely successful meeting, and we certainly did our part. We are very excited to have a pavilion at InterTabac in Germany in September. Lastly, we have hosted our successful festivals. We aim to host even more events and plan on making them regional.

DAV Cigars and Premium Cigar Processes

Cigar Life Guy: DAV prides itself on the process of making a premium cigar. Why is it important for consumers to understand the craftsmanship it takes to blend a cigar?

Armen Caprielian: Educating the public on the craftsmanship of our cigars is imperative. It is one of the main reasons that set us apart from many mass-market manufacturers. I would compare it to the boom of the craft beer market.

Aside from the fact we only produce premium, hand-rolled, long-filler cigars (not man-made), we aren’t looking to just pump out cigars from our factory. That is why we produce less than 500,000 cigars annually. Our blends undergo a lengthy and meticulous fermentation process and are aged for quite some time. The duration will vary based on the wrapper we use — usually longer for the darker wrappers. My partner and I always make a trip to the factory when we decide to come out with a new blend. We immerse ourselves in the entire process.

Armen Caprielian on the DAV Portfolio

Cigar Life Guy: Tell us a bit about the DAV Portfolio.

Armen Caprielian: Currently, our DAV portfolio consists of eight blends in our core line and two blends of cigarillos. There is a choice of light, medium, or full-bodied cigars in multiple Vitolas. We encourage people to visit us on our social media pages or email us at info@davcigars.com. You can also visit the DAV Cigars website.

Broadening the Market and Protecting the Legacy

Cigar Life Guy: You have moved into more international markets like the Middle East. What is the cigar scene like there, and how does it differ from the United States and other places worldwide?

Armen Caprielian: The Middle East has a very interesting cigar culture. Up until recently, these areas focused heavily on Cuban Cigars. If they hadn’t gotten their hands on a Cuban Cigar, it would have to be some of the bigger known brands. There was a mentality that price dictates the quality of the cigar — if it costs more, it must be a better cigar. We know that this is not true. Slowly, people started opening up to try boutique cigars or New World cigars. They realized that many exceptional cigars from different regions are sold at a lower price.

Collaborations and Protecting the Legacy Podcast

Cigar Life Guy: Describe your collaboration with Dr. Gaby Kafie and what your aim is for your Protecting the Legacy podcast.

Armen Caprielian: I consider Gaby a brother first and a colleague second. Let’s also remember that he is the founder of the BCA and selflessly created the organization for the betterment of the industry as a whole and, of course, to help boutique companies. When he and I started working together, we had the idea of creating a podcast so that all of these wonderful boutique companies could have a voice.

We wanted to cover sensitive topics openly and honestly — topics that others would otherwise avoid. It’s about having your finger on the pulse and sometimes just ripping off the Band-Aid. Our aim is also to educate our listeners and cover stories or topics that may be controversial. In the end, the betterment of our industry is always the aim.

Follow Armen on Instagram and check out the latest from DAV Cigars here.

Photo credit DAV Cigars

Lee Marsh of Stolen Throne Cigars: Interview

Posted on August 30, 2023 by Staff

Lee Marsh, the founder of Stolen Throne Cigars, was a prolific cigar smoker long before he started making them. Now, he’s making a name for himself and the Stolen Throne line by doing things his way. Marsh talks about the recent premium cigar victory over the FDA, connecting with the consumer, and the importance of not rushing anything when it comes to making cigars and cigar life.

Lee Marsh: First Premium Smoke

Cigar Life Guy: Tell me about your first premium cigar experience.

Lee Marsh: That’s funny. I don’t remember my first premium cigar experience, but I was about fifteen the first time I had a quality cigar -meaning a hand-made cigar. My uncle was in the Marine Corps and brought some back for me. And we were hanging around, and he gave me my first cigar. I remember the first premium cigar brand that piqued my interest and what I enjoyed about cigars, and I started the journey. It was the original Camacho Corojos when the Aurora family was still making Camacho. I remember vividly my first Corojo; instantaneously, it was one of those times when you have a cigar and say, “This is different.”. It started from there.

Lee Marsh on Starting a Cigar Business

Cigar Life Guy: Tell us how you started in the cigar industry. What did you do before, and how does it help inform what you do with your current business?

Lee Marsh: I’ve always been a consumer. I’ve been a passionate cigar smoker for years. I was working in compliance and tech and was in a situation where I was traveling a lot and spending a lot of my free time in cigar shops and cigar lounges all over the world. It grew.

The first time I visited a farm in the Dominican Republic, that subconsciously lit a fire in me. I just kept coming into conversations that if I made cigars, I would do this or that. And finally, it got to the point where it was a “shit or get off the pot” situation. So I had to go all in. I met with Noel (Rojas) through a couple of mutual acquaintances, like Island Jim, and we just hit it off immediately. A week later, I was down in Nicaragua, and we started to get the ball rolling on the Crook of the Crown.

Stolen Throne Cigars: Doing Things Their Way

Cigar Life Guy: Stolen Throne is an evocative name. How did you come up with it, and what’s the meaning behind it?

Lee Marsh: That was probably the hardest part about getting the company going. The Crook (of the Crown) was well before we had a name. But naming the company and the brand was tricky because I didn’t want to have something I had to fake or pretend. I wanted it to be authentic and transparent about who we were and what we wanted to represent. It’s rooted in making your place at the table. It was about doing things your way. The Waylon Jennings style, like outlaws and being a badass. It’s about doing the things you want to do.

Lee Marsh: What the Stolen Throne Cigars Brand is About

Cigar Life Guy: You released the limited edition Phantom Queen at last year’s PCA and the Yorktown Fleet line in 2023. When people smoke your cigars, what do you want them to associate with your brand?

Lee Marsh: Realistically, for us, when you smoke a Stolen Throne Cigar, you’re on our journey of tobacco with us. I’m a first-generation cigar maker, so you’re experiencing all my thoughts, hopes, aspirations, and passion when you smoke every cigar. What many people don’t realize about us is that you can tell from our portfolio that we’ve been on the market for four years, and we only have four blends in two sizes. We don’t rush anything. We do everything with a hundred percent effort and passion. And when you sit back and smoke our cigars, you’re on that journey with us. We’ve been out for four years, coming up on five years with mainly The Crook of the Crown, which is still surreal to me, to be honest.

Stolen Throne Cigars and the Ed Reed Line

Cigar Life Guy: Stolen Throne recently took over Ed Reed’s ER line distribution. What was that collaboration like?

Lee Marsh: It’s one of those things that grew out of a friendship. Ed and I have been friends for a while. We met at a Ravens game a while back when he was smoking a Crook of the Crown, and he had talked to me about getting in the business. He was passionate about cigars. I took him to task. I was like, “I’ll help you, but if you want to be another celebrity with a name on a cigar,” I’m not your guy. But that’s not what he’s about at all. He’s passionate about the culture and everything that goes into a premium cigar. He’s an avid smoker and super into what he’s doing. So when they got into the process and needed some help navigating, they reached out to me, which grew into our distribution.

Challenges in the Industry

Cigar Life Guy: What is the cigar industry’s biggest challenge today?

Lee Marsh: I think it’s like anything else — the rising cost of living. The lifestyle is not inexpensive. It’s one of those things where people have limited disposable income.

So, I would say the FDA is the biggest challenge, but that was struck down today, which is awesome. For now, anyway. It’s like anything else when you’re a luxury aspect of someone’s life. For most people, it’s not a hobby. It’s a lifestyle. I know that I smoke ten cigars a day. I smoked half that before I was making cigars. But it’s a part of our life. Like everything else, the rising cost of living is a potential threat.

Future Predictions for Lee Marsh and Stolen Throne

Cigar Life Guy: What’s next for Stolen Throne?

Lee Marsh: Hopefully, we’ll chug along and do everything we want to do as far as continuing to push passion and quality products. People always ask me, “What do you plan to do in five years?” Well, I hope I’m still making cigars (laughs). That’s the plan. Keep doing what we’re doing. Continue to get better. Continue to push our envelope in terms of reaching our true potential.

Cigar Life Guy: Have we missed anything? Please tell us anything else you’d like the cigar world to know.

Lee Marsh: We’re super grateful. It’s been a whirlwind for four years, and we’re super grateful for the support we’ve received nationwide and internationally. For us, the consumer always comes first, along with the retailer. They go side by side. It’s overwhelming to hear retailers already working with us telling other retailers, “Hey, you gotta do business with these people.” Most of our growth over our first three or four years has been consumers championing the brand, going into retailers, and telling them, “Hey, you gotta bring this cigar in.”

Follow Lee on Instagram and find out the latest from Stolen Throne Cigars here.

Photo credit: Stolen Throne Cigars

Cigar Taxes: Here’s What You Need to Know

Posted on August 1, 2022 by Staff

Mark Twain once said, “I have made it a rule never to smoke over one cigar at a time. I have no other restriction as regards smoking.” Most cigar enthusiasts would agree with Twain. The government has a long tradition of smoking restrictions, including taxation. Cigar makers have been at odds with the tax collector since the Civil War. Here’s a little history in the ever-evolving realm of the only absolute other than death — cigar taxes.

Cigar Taxes: The Early Resistance

About 150 years ago, the cigar industry didn’t look much different than it does today. Small independent factories wanted to provide premium products for cigar smokers. Like any other product, the government eventually wanted a piece of the burgeoning industry. There was plenty of resistance especially because there was plenty of corruption.

When tax collectors came to collect from factories, they saw a vast array of single cigars. Here’s where it got complicated. They started counting inventory. Conveniently for the taxman, it was difficult to determine which cigars they counted the month before and they had not. This led to double-counting and plenty of dirty deals on both ends.

This arrangement didn’t last long. Eventually, Congress mandated that cigars be boxed or bundled by 10s, 20s, or 50s, so they could manage the counting and the collection process. Then, each box required a prepaid revenue stamp. Of course, the costs were exorbitant, sometimes double the cost of the cigars.

These days aren’t much different. There are federal excise taxes importers must pay besides state taxes. Add in the rise of internet commerce, sales tax, and new laws that pass every few years and confusion persists. Like any product, the costs pass down to the consumer. Here’s what you should know.

What Cigar Taxes Mean for Consumers

Unlike cigarettes and other tobacco products, cigars are taxed a percentage of their wholesale price. Before your imported premium cigar even hits the shelf, it is taxed nearly 53%. Sounds like echoes of the Civil War tax. Fortunately, this federal tax caps at roughly 40 cents per individual cigar. Most companies roll this cost directly into their wholesale price. The taxes don’t end there. Retailers then need to factor in their individual state tobacco tax along with sales tax.

To make this all more concrete, let’s take a cigar with a wholesale price of $4.00 and to keep the math simple assume a 25% state tobacco tax. Remember, this is after the federal government has already taken their 40-cent share. That cigar has an effective cost to retailers of $5.00 after the $1.00 state excise tax. After a 100% markup to assume a 50% gross margin for a typical MSRP, the shelf price comes to $10.00. Add in sales tax at 10% (an additional $1.00), and the consumer pays $11.00. Confusing enough? When all is said and done, taxes drive well over a quarter of the cost. This is only a hypothetical. Each state sets its own distinct tobacco tax ranging from 0 to 95% of the wholesale price, so depending where you are the cost can be even higher.

Be Mindful When Traveling

It’s no surprise that many cigar enthusiasts traveling for business or pleasure are walloped by sticker shock when they want to indulge in a good smoke. California and New York have two of the highest tax rates. There are, however, a handful of states like Florida and New Hampshire that don’t charge any additional tobacco tax. Some states, like Minnesota, charge an absurd 95% state excise tax, but cap individual cigars at 50 cents. This is like the federal cap of 40 cents.

If you’re traveling, bring your own sticks or check out a breakdown of the excise for each individual state at the Cigar Association of America, Inc. Many retailers will build the tax into the shelf price and just charge the sales tax, but plenty of stores list a shelf price that is far less than what you’ll pay.

Internet Sales and Cigar Taxes

Of course, those taxes only apply to retail stores, right? Wrong. In the early days of the internet, e-commerce was tax-free. The cigar business was no different, but just like in the Civil War era, tax collectors eventually wanted their cut. In 2018, the Supreme Court ruled in South Dakota vs. Wayfair, Inc. that individual states can charge sales tax on out-of-state transactions. But what does it mean for the tobacco tax? States are acting.

In 2019, Maryland began to require out-of-state sellers to pay the tobacco tax besides the sales tax. More states will follow, if history teaches anything. Yet, it’s too difficult to track. For now, internet sellers still provide the best deals. Since they do not have the same overhead as brick-and-mortar stores and can (for now) avoid state excise tobacco taxes. This assumes they ship from a low or no excise tax state, as most do. They provide premium cigars at the lowest cost.

You’ll pay more, sometimes a lot more, at your local shop, but retailers can still provide the experience and the ambiance that is a touchstone of the cigar lifestyle. Think of the extra tax as an occasional surcharge.

The “Sin” Tax Will Never Go Away

Sin taxes. They’ve been around as long as taxes themselves. Unfortunately, cigars get paired with alcohol and gambling, and lawmakers and supporters feel justified in charging unreasonable fees for hobbies they consider vices. The intent is to reduce consumption, but sometimes it looks more like a ploy to inflate a state’s pocketbook. Either way, a true smoker won’t let restrictions and taxes interfere with their lifestyle.

Photo by Jp Valery on Unsplash

Tough Conversations Over Holiday Cigars

Posted on November 25, 2019 by Staff

This holiday season will be full of lots of cigars and for most of us also a great deal of family time. Unless you’re related to cousin Eddie, family time is usually a positive thing. It means quality time with loved ones. It’s a great time to finally have those tough conversations you’ve been putting off for years and start implementing new plans. When people are around their loved ones, it also causes them to be reflective. So, there’s no better environment to start a difficult conversation than over a great stick!

Don’t miss my completely free holiday gift to you at the bottom of this article!

Tough Conversations and Holiday Cigars

Estate or end-of-life planning starts with internalizing that we all die. It’s unpleasant to think about and natural to put off. Some families are in great shape. They have had conversations about what happens if Mom, Dad, their spouse, or etc. were to pass unexpectedly. They’ve also implemented a plan to carry out final wishes. If that’s you, great! Cut another piece of pumpkin pie, pour a good beverage, and light an Opus X.

Have a Plan or Starting Thinking About One

If the unexpected happened to you, would your family be taken care of, financially and otherwise? If you have minor children, have you formalized how you’d like them cared for? Do your loved ones know what your final arrangement preferences are for burial, cremation, service or etc? They should include instructions beyond the vague, “something appropriate.”

On a basic level do you have a plan to pay for your funeral? Do your loved ones know about your financial affairs? Who should they talk to (lawyer, financial professional, insurance agent, accountant) to settle your affairs?

Each of these questions could be an article or two to address. Depending on their complexity, they might require professional advice. I’m not trying to solve all your issues here, just to encourage you to start the conversation.

Three Tough Conversations to Consider

So you’re all set. You’ve got a will and executor lined up. You clarified your wishes for final arrangements. You’ve had some tough conversations with your spouse or adult children. They have a decent idea of what to expect with your finances. And, you’ve given some thought to estate planning issues if your assets are enough to warrant it. That’s great! Now, here are three things that you might have overlooked.

Digital Footprint or Assets

Years ago you didn’t have to worry about digital assets. Now, we all have them, even if they aren’t valuable to anyone else. Have you written down all your major online accounts (email, social media, banking, or financial) and instructions on how to access them? Do you own websites or domain names? Someone should be able to access them.

Medical Power of Attorney or Living Will

Have you addressed how you’d like to have medical decisions for you if you are unable to do so for yourself? Have you codified this in writing? Would you like heroic measures taken to try to save you even if you’re facing no hope of recovery? If you haven’t codified your wishes, someone else might make a decision for you that is contrary to what you want.

Long-term Care

It isn’t just death that causes us problems. According to the 2019 Genworth Cost of Care Study, 70% of adults will need long-term care in their lifetime. I know! That is a frigging crazy stat…and also very sobering. The median cost for a semi-private room in a nursing home is over $90,000 per year.

Long-term care insurance is an option for addressing some of those costs. It’s important to consider how you’d like to deal with the possibility of being unable to care for yourself. Having a plan is important even if you decide not to use long-term care insurance to help offset these expenses.

My Holiday Gift to You (No, It’s Not a Box of Cigars)

My friends at Tarkenton Financial have put together a great 24-page “Family Guidebook.” It’s great for dealing with some of these estate issues and starting conversations.

Written by a respected estate planning attorney, it also includes a workbook you can use to organize your important information (names, contact info, accounts, logins, instructions, etc.). I’d be happy to email you a complimentary copy as my holiday gift to you. Send an email to dave@cigarlifeguy.com or message me on social media @cigarlifeguy with your email address and a note that says “send me the family guide.”

Of course, if life insurance or long-term care insurance would help with your plans, Cigar Life Guy gets you non-smoker rates regardless of how many cigars you smoke so #PSSITA!

Photo credit https://www.flickr.com/photos/gylo/5277766947

John F Kennedy and the H. Upmann Petit

Posted on November 19, 2019 by Staff

The Strange Legacy of JFK’s Favorite Cigar

John F Kennedy had a love for cigars, but not just any cigar. For him, the H. Upmann cigar was the cigar to have. If you have spent any amount of time perusing the shelves at your local tobacconist, then you have likely crossed paths with an H. Upmann cigar. It is one of the oldest cigar brands in existence (outdated only by Punch and Por Larranaga). It also managed to survive the decades-long embargo by producing a non-Cuban counterpart under the same name.

This longevity is hardly the reason why people still talk about H. Upmann today. The H. Upmann cigar has managed to remain popular among collectors and newcomers alike.

“It’s the cigar that JFK smoked!” is what you will likely hear from the over-enthusiastic guy behind the counter of your local smoke shop. For any warm-blooded American, this is more than enough reason to light up a stick of this signature brand.

Of course, it isn’t technically true. John F. Kennedy’s favorite stick was the original Petite Upmann. It was a machine-rolled Cuban with mild smoke and dense ash that was since discontinued. But the mystique around this famous cigar is only bolstered by one of the most interesting stories in cigar history.

JFK’s Washington D.C. Cigar Sweep

The year was 1962, less than a year after the disastrously-executed Bay of Pigs Invasion. A freshly-elected John F. Kennedy had the unfortunate task of enacting a congressionally-approved Cuban trade embargo. The embargo would forbid the sale of Cuban products (i.e., cigars) on American soil.

Kennedy, a man who knew the value of a well-enjoyed cigar, had to act fast. The next morning, he would have to sign the order. From that moment on, he would no longer be able to find his favorite cigar.

Enter Pierre Salinger, John F. Kennedy’s rookie Secretary of State. According to Salinger’s own account, Kennedy called him into the Oval Office in the early evening. He had a hell of a favor to ask.

“I need some help,” Kennedy said plainly. “ … about 1,000 Petit Upmanns.”

Salinger jumped into action. An avid fan of Cuban cigars himself, he set out to visit every tobacconist in the D.C. area. In all, he was able to buy 1,200 Petite Upmann cigars mere hours before Kennedy signed the embargo into law. According to Salinger, Kennedy signed the document right after hearing about the impressive haul.

The failure of the Bay of Pigs necessitated their stockpiling. So, these were nothing if not victory cigars, at least in the political sense.

The H. Upmann Petite: Gone for Good?

Today, the Cuban-made H. Upmann and the Dominican-made H. Upmann operate inside a peaceful coexistence. Although, the recent loosening of restrictions has allowed a handful of people to partake in the Cuban versions. While the Upmann Petite was long since discontinued, there were some efforts to recreate the flavor and aroma of JFK’s favorite smoke.

The H. Upmann Original Petite Corona is an impressive attempt at this endeavor. This resurrected blend of Dominican and Brazilian tobaccos offers the same level of warm and nutty smoothness that Kennedy and Salinger scrambled to preserve. For about 7 bucks, it is certainly worth a try if you come by one.

Anyone who still holds a grudge against John F Kennedy for the whole Cuban embargo thing, it’s time to do what any lover of good cigars should do. Move on, light up, and enjoy whatever you’re smoking.

Photo credit: <a title=”National Archives and Records Administration
, Public domain, via Wikimedia Commons” href=”https://commons.wikimedia.org/wiki/File:Hyannisport_Weekend._President_Kennedy_with_cigar_and_New_York_Times._Hyannisport,_MA,_aboard_the_%22Honey_Fitz%22._-_NARA_-_194268.jpg”><img width=”256″ alt=”Hyannisport Weekend. President Kennedy with cigar and New York Times. Hyannisport, MA, aboard the "Honey Fitz". – NARA – 194268″ src=”https://upload.wikimedia.org/wikipedia/commons/thumb/8/8f/Hyannisport_Weekend._President_Kennedy_with_cigar_and_New_York_Times._Hyannisport%2C_MA%2C_aboard_the_%22Honey_Fitz%22._-_NARA_-_194268.jpg/256px-Hyannisport_Weekend._President_Kennedy_with_cigar_and_New_York_Times._Hyannisport%2C_MA%2C_aboard_the_%22Honey_Fitz%22._-_NARA_-_194268.jpg”></a>

Are Real Cohiba Cuban Cigars Worth the Hype?

Posted on August 13, 2019 by Staff

Ask a handful of new cigar smokers what the ‘best’ cigar is, and you’ll likely hear the word “Cuban” come up. As with anything that’s outlawed,’ Real Cuban cigars have had a certain mystique surrounding them. It’s an air that other cigars don’t have. But – are they worth the mystique and the money? Anyone who’s tried to buy Cuban cigars overseas – the real ones, not the Cohiba knockoffs! – knows that they’re costly.

So, is it worth forking up the dollars for the authentic Montecristo, Cohiba, or H. Upmann from Cuba?

What Makes Real Cohiba Cuban Cigars Special

First, Cuban tobacco has a distinctive flavor. It’s the only thing that makes a real ‘Cuban’ cigar taste as it does. Then, there’s the ‘I can’t do what I want’ mentality floating around for almost 60 years. That gives a Cuban cigar a sense of ‘coolness.’ Cuban cigars carry a uniqueness all their own. When tobacco is grown, it takes on the flavor of the soil it’s grown in – so yes, Cubans are unique. The climate in Cuba – being smack in the middle of the Caribbean – makes for some fantastic tobacco.

A typical Cuban has a bold flavor profile that’s rich and complex. For those who have smoked them – you know what I mean. Some Cuban brands have milder varieties. But, the well-known Cuban cigars lie more towards the “fuller” side – so if you’re new to cigars, ease in. Some reputable brands are Cohiba, Montecristo, H. Upmann, and Romeo y Julieta. You can’t go wrong with any of them.

Where Do I Find Them?

Now, you want to buy some good Cuban cigars, but where? Since 1962, there’s been an embargo on cigars from Cuba – one of their top exports. Recently, the U.S. has loosened laws around bringing Cubans back to the United States. It’s still tough to find them in the lower 48 states because they can’t be resold here. Plan on an international trip, but be aware if you travel overseas and are in the market for a Cuban. Watch out for counterfeits – they run rampant.

If you’re sitting on the beach, enjoying a nice umbrella drink, and a vendor asks if you’d like to buy a three-pack of Cohibas for $10 – run away! Real Cubans are expensive – expect to pay some decent dollars for a cigar – usually around $15 or more per stick.

Duty-free shops in airports are great spots to buy authentic Cuban. Although, they may need a couple of months in your humidor when you get home. Also, if you’re staying at a reputable hotel, and we’re assuming you are, ask the front desk where you can find some ‘real’ Cubans. Many tourist towns have a shop or two that sells the real deal, and you can go there to pick up a few to bring home with you.

Is It Worth It?

Yes! Take this with a grain of salt. There are some fantastic cigars from plenty of manufacturers throughout the Caribbean (think Nicaragua, Honduras, etc.). But, if you’ve never had a Cuban, it’s almost a rite of passage – you must try one.

So, seek a real Cuban cigar next time you plan a vacation and want to incorporate some cigars into the mix. Try one for yourself, and let us know what you think!

Photo credit: Pixabay | Rom4in

Cigar Smokers in an Anti-Tobacco World

Posted on June 12, 2019 by Staff

Each year, anti-smoking laws get stricter. That makes it harder for cigar smokers and tobacco users to find places to indulge. Smoking laws usually target cigarette, e-cigarette, or vape users. Yet, when it comes to those who smoke cigars, the laws, rules, and regulations get a little more complicated.

Government Lumps All Nicotine Use Together

Beverly Hills is an interesting case study in the ongoing debate. Presently, it’s illegal to smoke almost everywhere within the city limits. That includes apartments and condos. In 2019, Beverly Hills City Council proposed a new tobacco law. It would be one of the most stringent anti-tobacco laws in the country if passed. The law would end the sale of all forms of nicotine including cigarettes, cigarillos, chewing tobacco and etc. The exceptions are nicotine products. So, we’re talking about patches and gums that help smokers kick the habit.

When news of the impending law was released, the Beverly Hills City Council received a sea of letters. The city’s cigar lovers also visited council meetings in protest. Also, cigar smokers gained support from one of the city’s high-profile residents. It was the former California Governor, Arnold Schwarzenegger. In a letter to the city council, Schwarzenegger wrote that he supported the ban. But, he highlighted the distinction between cigarettes and cigars. “I am right there with you,” said Schwarzenegger. “I agree with your battle to protect people from the dangers of tobacco smoke and I trust that (the city) will recognize the fundamental difference.”

Later, lawmakers amended the bill. The amendment permits cigar smoking in three dedicated cigar lounges within city limits. They include the Grand Havana Room, Buena Vista Cigar Club, and Nazareth’s Fine Cigars.

Life Insurance Companies See the Difference

Life insurance companies are also starting to make distinctions between the two. Usually, life insurance rates for cigarette smokers and other tobacco users are higher. Recently, some life insurance companies are making special dispensation for cigar smokers. That’s especially true in cases of occasional cigar smoking. A small handful of progressive-thinking life insurance companies took it a step further, though. They are offering regular or daily cigar smokers the standard, non-tobacco rates. If you’re interested in this, Cigar Life Guy can help you. However, if you smoke regular cigarettes, then you can expect higher premiums. These premiums are often three times higher or more than those offered to cigar-only smokers.

Unfortunately, it’s likely that more tobacco bans like these will start popping up elsewhere. Yet, cigar smokers should take comfort in knowing that some are making distinctions. Lawmakers and life insurance companies can make the distinction. There is a difference between the long-term health risks of cigars versus cigarettes and other tobacco products.

Photo credit: Pixabay