Tobacco Asia

12 tobaccoasia Issue 6, 2022 November / December Q&A THE TA Q A By Thomas Schmid David Ozgo, president of the Cigar Association of America (CAA), updates Tobacco Asia on the US premium cigar sector – but also an FDA-proposed ban on "flavored cigars". Tobacco Asia (TA): CAA is perhaps the best- known and leading trade association for the United States cigar industry. What are the organization's prime objectives and duties? David Ozgo (Ozgo): The Cigar Association of America represents all tiers of the cigar industry in the United States. We have many of the large manufacturers of cigars as our members, both in popular priced as well as premium segments. But we also represent numerous industry suppliers and we have a number of retailers as members, too. Though we're based in Washington, DC, we are active across all 50 states and maintain a lobbyist in almost every one of them. After all, that's where the rubber really hits the road. Many of the regulations that the cigar industry has to follow come out of state capitals. TA: Could you please give us some facts and figures on the state of cigar consumption in the United States? Ozgo: Certainly. Well, when we look at both popular priced and premium cigars, about 75% are imported into the US. But when looking exclusively at the premium market, between 90% and 95% of everything enjoyed in the US is imported. As far as total market size in 2021 is concerned, it was an exceptional year for cigars in the United States. Both popular priced and premium cigar volumes were up over 14%. That is a turnover of more than 15 billion cigars. Looking strictly at the premium market, volume grew 26% as measured by imports, reaching almost 460 million sticks. To put that into perspective: 2021 was the first year that we exceeded 400 million premium cigars since 1996. So, it was truly a very, very special year for us. TA: A 26% increase for premium cigars… that's a lot, actually. What are the main origin countries in that segment? Ozgo: The three primary countries where we're importing premium cigars from are the Domini- can Republic, Nicaragua, and Honduras. There are a few other countries that also export to us, but those three are the primary origins. TA: What about Cuban cigars? Are they still officially banned in the US? Ozgo: Yes, the ban is still in place. As a result, we import from the three countries that I have mentioned. And they're all making exceptional products. When you look at international rankings, Dominican, Honduran, and Nicaraguan cigars are all rated just as highly as their Cuban counterparts. TA: David, would you say that the United States currently is the world's largest market for premium cigars, particularly Caribbean products? US Cigar Market: Surprising Boom… and Potential Ban David Ozgo touring Nu Way Tobacco Company with c.o.o. Tom Kirby. Credit CAA David Ozgo.

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