We’ve known about this since 2009 so, if you are a cigar smoker, this should not come as a surprise. On April 24th, the FDA published their Deeming Regulation that will affect the way you and I purchase and enjoy cigars. In fact, this regulation will change the cigar industry as a whole.
Click this link for the full Deeming Regulation.
Probably the most interesting part of this regulation is how the FDA will exclude “premium” cigars. The FDA has determined that the $10 price point is the cut off where exemptions will start.
Below is a chart compiled by Gary Griffith of Emilio cigars that shows why the $10 price point will not work for manufacturers and consumers. Gary states that this data was derived from a full year of sales from 26 stores in 4 states, across a wide array of both demographics and state tobacco tax rates.
As you can see, the “sweet spot” for premium cigars lies in the $6 to $9 price range. I don’t know about you but, I really don’t want to spend $10 on a $6 cigar in the future to get around this FDA exemption.
Related internet posts:
- See the CRA’s response to the FDA Deeming Regulation on my Tampa Cigar Examiner column.
- Charlie Minato of halwheel.com wrote an excellent editorial on the $10 exemption for premium cigars
- Please read Marvin R. Shanken’s post on Cigar Aficionado.
Things you need to do:
- Sign the CRA petition
- Join the Cigar Rights of America if you have not already
- Share this information with a friend
The fight is far from over. It is now our turn to make our voices heard, now more than ever. Please do not let the July 9, 2014 deadline slip away from you.