Sunday, October 19 2008
"With the addition of Camacho Cigars and Mr. Christian Eiroa, the Oettinger Davidoff Group has successfully united two families with a passion for
cigars as a premium product and the ambition to strive unceasingly for the highest quality standards."
That's Oettinger Davidoff Group chief Reto Cina on the acquisition of Camacho, which was effective as of October 1, but which was not formally announced until October 13. Financial terms were not announced, and are not likely to be seen publicly, since Oettinger Davidoff is privately held.
But Davidioff, which had $1.12 billion in worldwide sales last year (converted from Swiss Francs), now adds ten Honduran-made brand groups to its roster of all-Dominican-made lines: Baccarat "The Game" Havana, Camacho, Deluxe, Don Felo, Don Macho, El Legend-Ario, La Fontana, National Brand, The Repeater and an unbanded (nude) bundle line. The formal announcement noted that Camacho's biggest-selling single size of the Baccarat Rothschild, a robusto-sized cigar.
No changes are planned for the Camacho operation, which will retain all of its 561 employees, all but 27 of whom work in the Danli, Honduras production facility. Julio Eiroa, 71, will retire from the day-to-day management of the business and return to his first love, which is growing tobacco. Christian Eiroa, 36, will head the Camacho group into the future.
"It offers us a platform so we can grow a lot more aggressively," he said. "We thought it was the right opportunity to be able to perpetuate the life of our brand. Now Camacho will become one of the top ten brands in the world."
Certainly, the opportunity for sales in new venues such as duty-free shops will become available to Camacho, as Davidoff products already dominate humidors in the U.S. and have a steady presence overseas. And Davidoff has 200 company-owned sales locations and 56 Davidoff stores worldwide that will soon be featuring Camacho cigars. Oettinger Davidoff reported that it sold 30.8 million cigars worldwide in 2007.
>> It's only the Town Council of small Miami Lakes, Florida, but Nick Perdomo triumphed in a hotly-contested race for Seat 1 held on October 7. Perdomo received 1,794 votes of 4,583 cast (39.4%) to win the seat, ahead of attorney Caesar Mestre (26.29%), the city's youth advisory task force chair Peter Diaz (21.8%) and dentist David Bennett (12.76%).
"My vision for Miami Lakes is one where town officials will be held accountable for their actions," said Perdomo in a statement. "Residents deserve the very best individuals to represent their needs and I believe that by applying common sense business practices, we can find solutions to the issues that affect all of us on a daily basis. Fiscal responsibility, crime prevention, efficient public services, and traffic relief are my top priorities."
Perdomo isn't giving up day job, however, and will continue to operate the Tabacalera Perdomo. But being an elected official and having some access to other local legislators in Florida will also give Perdomo a chance to become a reference point for tobacco issues and be able to represent the often-not-consulted cigar side of things.
>> After his conviction on October 1 on charges of selling counterfeit goods, specifically cigars with Altadis U.S.A.-owned trademarks including H. Upmann, Montecristo, Romeo y Julieta and Trinidad, James David Joiner was sentenced on October 6 to 364 days in Broward County Jail and five years of probation by Judge Mily Rodriguez-Powell.
Joiner, 65, was also ordered to pay a fine, pay restitution to Altadis U.S.A. and to pay the cost of prosecution and of the supervision of his probation period. During the sentencing hearing, it was noted that Joiner's shop, Smoke Cafe in Ft. Lauderdale, was also selling legitimate Altadis U.S.A.-distributed cigars, side-by-side with the counterfeit goods.
Altadis U.S.A. operates an extensive and aggressive investigatory effort to try and uncover counterfeit cigars that use their trademarks, many of which are also brands produced in Cuba for sale in countries other than the United States. In addition to criminal proceedings brought by state authorities – as in Joiner's case – Altadis U.S.A. also has the option to follow up with additional, civil suits for damages.
- Rich Perelman in Los Angeles
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Reprinted by permission. "Heard in the Humidor" is a publication of Perelman, Pioneer & Company. Copyright 2008; All rights reserved.
