Sunday, December 21 2008
Heinrich Villiger is steering his family's 120-year-old company into an uncertain future. In the Winter edition of the European Cigar-Cult Journal, he shared his thoughts about the difficult future of tobacco with interviewer Frank Hidien.
Asked about the possible lifting of the U.S. trade embargo with Cuba, Villiger had no concerns. "I don't actually expect any effects for the European habano fan. The ban on smoking, not only in Europe, but also in the USA, has already led to a clear stagnation of the growth of the premium cigar market sector, the importers' warehouses are anything but empty, and there are sufficient raw tobacco stocks and production capacities in Cuba for a modest volume for the USA. And, in addition, the American aficionado who simply must have his habano can already get it anyway, via illegal imports from Canada, Mexico or duty free stores. There will certainly not be a landslide of changes on the two major cigar markets of the USA and the EU."
On smoking bans, Villiger was less optimistic. "The [World Health Organization] will only ease up its pressure if there is pressure in the opposite direction from the political sector. This is not the case right now, because there is no objective information available to politicians, such as the fact that all the statistics on the health hazards caused by passive smoking are incorrect.
"Our company is present in Switzerland and in Germany with cigar lounges at many events that are popular with politicians who are happy to enjoy the delights of a cigar. Whenever they are asked why they then in parliament form a majority in favor of restrictive legislation on tobacco, the answer is always the same: ‘Because 2/3 of the people (=voters) are of the same opinion.' Getting politicians to change their firm opinions is as difficult as teaching a cow to climb."
>> A sensational auction of very pre-embargo Havana cigars from some of the most famous brands of all time ended with more than 11 sales of single boxes of cigars for more than $3,000 each!
The event was organized primarily to liquidate the collection of one enthusiast by Cigars Unlimited of London and held on November 27 with the famed Simon Chase of British cigar importer Hunters & Frankau serving as the auctioneer. A total of 64 lots were offered with most being Havana-made cigars from the Alfred Dunhill Seleccion Suprema series, produced as early as 1946, up to 1987.
Three boxes of rarely-seen Don Candido Seleccion Suprema No. 504s – 5 1/2-inch by 52-ring torpedoes – were the stars of the auction. The Don Candido line was made in Havana exclusively for sale at Alfred Dunhill shops in the 1960s and ‘70s and have been highly-sought-after as collector's items ever since. These three boxes were from the early 1960s and contained 25 cigars each; the final prices were $5,773, $5,617 and $3,120, averaging $231, $225 and $125 per cigar, respectively!
>> A lengthy and contentious end-of-session battle in the Michigan legislature over smoking ended with nothing being done.
Dueling smoking-ban bills could not be reconciled between Democratic House leaders – who wanted exemptions for casinos and smoke shops – and Republican Senate leaders, who refused to back off of their bill which included a ban with no exceptions.
The issue was essentially the last one considered in the 2008 legislative session, as a conference committee hearing was convened at 12:30 a.m. on Friday (Dec. 19) after the session was supposed to close on Thursday. If a ban is to be imposed, a new set of bills will have to be introduced in 2009 and the legislative process must begin again. About a third of the Democrat-led Michigan House will turn over due to term limits, but the Republican-led Senate will remain more-or-less intact.
Rep. Andy Meiser (D-Ferndale) spoke of a possible 2010 ballot initiative for a smoking ban, but acknowledged that substantial fund-raising would be required.
>> The U.S. 11th Circuit Court of Appeals in Atlanta, Georgia has upheld the conviction of counterfeit box maker Juan Penton in a decision handed down on Wednesday, December 17. According to the opinion, "The police investigation of Penton began when Altadis U.S.A. provided information to the Miami-Dade County police that enabled them to send an undercover officer to Defendant's shop. In a sting that occurred on October 5, 2005, Defendant sold to the officer and a confidential informant sixty boxes of cigars: fifteen boxes of Cohiba Esplendidos, ten boxes of Montecristo Number 2, ten boxes of Romeo y Julieta Churchill, ten boxes of Partagas Lusitania, ten boxes of Hoyo de Monterrey Coronas, and five boxes of Hoyo de Monterrey Pyramid."
Penton was tried and convicted in October 2006 of violations of the Trademark Counterfeiting Act and sentenced to five years probation with five months of home confinement and to pay a $7,500 fine plus a $300 special assessment. Penton's attorneys appealed, arguing that he should not have been convicted because he did not violate U.S. trademarks belonging to Altadis U.S.A., but made replica boxes of brands still made in Cuba, and that the U.S. trade embargo with Cuba shields him from any violations of Cuban-held marks.
The Circuit Court disagreed. "Because Cuban marks are not entitled to any protection in the United States, Defendant argues, he cannot have committed a crime by copying Cuban trademarked material. The problem for Defendant is that we have already rejected his defense in a similar case" citing United States v. Guerra, 293 F.3d 1279 (11th Cir. 2002), which also involved counterfeit Cuban cigars. The other aspects of Penton's appeal were rejected and his sentence was affirmed.
- 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.
