Up in smoke?

As U.S. government tries to cut down on death, disease, cigar market could suffer with sought-after regulations

The owner of Richmond, Va., Havana Connections cigar shop, George “Shorty” Koebel, worries that the Food and Drug Administration’s intention to regulate cigars may suck the life out of the artisan craft business. Enlarge photo

Steve Helber/Associated Press

The owner of Richmond, Va., Havana Connections cigar shop, George “Shorty” Koebel, worries that the Food and Drug Administration’s intention to regulate cigars may suck the life out of the artisan craft business.

RICHMOND, Va.

Sometimes, a cigar isn’t just a cigar.

From large hand-rolled cigars and smaller machine-made cigars to little cigars that are similar in size to cigarettes, there are nearly as many cigars as there are aficionados to enjoy them. And as federal regulators weigh standards for the entire industry, some in the cigar world are pushing to make sure their livelihoods and the products they enjoy don’t go up in smoke.

While the Food and Drug Administration has expressed its intention to regulate cigars under a 2009 law that gave it authority over the tobacco industry, it has yet to specify what’s ahead as it ramps up efforts to curb the death and disease caused by tobacco.

If it’s anything like the FDA’s regulation of cigarettes and smokeless tobacco, that could mean banning certain flavors, requiring new health warnings, limiting the sizes and shapes of cigars, or imposing restrictions for marketing, advertising and retail sales. Cigars also may be restricted from being sold separately, and the agency also could limit the amount of nicotine in the products.

The premium cigar industry argues any number of the potential restrictions could hurt both cigar makers and specialty tobacco stores, whose products make up only a small fraction of tobacco sales, don’t pose the same concerns as cigarettes, and the range of sizes and shapes of cigars makes across-the-board standards almost impossible.

Even the House Appropriations Committee weighed in about issue last week in its report on the fiscal year 2013 Agriculture Appropriations bill, reminding the FDA that “premium cigars have unique characteristics and cost-prohibitive price points and are not marketed to kids. Any effort to regulate cigars should take these items into consideration.”

“If you’re going to focus your efforts on regulating tobacco products to meet the spirit and intent of the Tobacco Control Act, where is best to spend those scarce resources – on a tenth of a percent of the market or on a huge chunk of the market?” asked Bill Spann, CEO of the International Premium Cigar & Pipe Retailers Association, an industry group representing more than 2,000 tobacco retailers and more than 350 cigar manufacturers, distributors and others.

According to the latest federal data, there are about 13.3 million cigar smokers in the U.S., far less than the 45.3 million U.S. cigarette smokers.

U.S. tobacco sales topped $107 billion in 2011, but only 7 percent, or $7.77 billion, consisted of cigars, according to statistics from Euromonitor International. And of the 7 billion cigars sold annually, only about 250 million of them qualify as premium, handmade cigars that range in price from $6 to $30 and are – as far as Spann is concerned – akin to fine wines and craft beer.

While Spann recognizes the need for tobacco regulation, he believes smoking premium cigars is a hobby, not a habit, and they aren’t marketed or sold to children.

“You don’t have a middle-schooler or high-schooler standing on the corner with a $15 Davidoff (a brand of cigar) sticking out of their mouth,” Spann said.

Possible restrictions to premium cigars have been a topic of conversation at any one of Craig Cass’ specialty tobacco shops in North Carolina and South Carolina, where smokers often make use of lounge areas to smoke and chat.

“They’re worried about losing the artisan nature of our products, where every time they come in, there’s something new to select from,” Cass said, adding that customers aren’t just coming in to “grab their smokes,” they are looking for a particular cigar to suit their mood or the situation.

The Food and Drug Administration intends to regulate cigars under a 2009 law that gave it authority over the tobacco industry. Enlarge photo

Steve Helber/Associated Press

The Food and Drug Administration intends to regulate cigars under a 2009 law that gave it authority over the tobacco industry.