Sunday, January 28 2007
When the Cullman family finally sold the last of its General Cigar empire to Swedish Match in 2005, it seemed unimaginable that the inspiration behind Macanudo, Partagas and so many other brands in the U.S. was really out of the cigar business. "It felt strange not to be in the business," said David Danziger, now a part of Culbro, L.L.C. in New York, a private investment firm formed in 2005 with $75 million from the sale of General Cigar.
Managed by three generations of the Cullman family - Edgar Cullman, Edgar Cullman, Jr. and Danziger - it now looks for investments in middle-market consumer and service businesses.
But it's not out of the cigar business entirely. The Culbro Signature cigar was introduced in 2006, because, as Danziger notes, the "two retailers who suggested it to us.
"It's an experiment. The Cullman name is very well known to the cigar trade, but not that many consumers know it. We didn't want to offend anyone, but when two retailers approached us, we decided to try it.
"We had low expectations for it, but it's gotten a nice response. We're still trying to see how people feel about it."
The Culbro Signature line is made, of course, at General Cigar Dominicana in Santiago, Dominican Republic. It's medium in body and has subtle flavors with a choice of Connecticut Shade wrapper grown in 1997 or extra-dark Cameroon wrappers. The binder for both styles is from Mexico and the filler leaves are from the Dominican Republic and Mexico.
The Connecticut-wrapped line sports a red band and the Cameroon style, a blue band. Both are offered in three sizes Toro (5 1/2 inches by 49 ring), Robusto (4 1/2 x 54) and Lonsdale (6 1/2 x 42).
All shapes are sleeved in cellophane and packaged in slide-lid cabinets of 15. All sizes have suggested retail prices of $10.00 to $10.50 before any local tobacco taxes and are sold only at Diebel's, primarily in Kansas City, Missouri and the Tinder Box of the Carolinas (primarily in Charlotte).
"It's a tiny cigar brand that keeps us in the business," said Danziger. What about buying a company and coming back into the business in full force? "If there's the right company, we might be back. There are very few businesses like the cigar business."
"Before Castro and his people were declared Marxist-Leninists, they were declared anti-Americans. These folks hate us."
That's a quote from U.S. Commerce Secretary Carlos Gutierrez, now the leader within the Bush Administration of the Cuban trade embargo. Gutierrez told Bloomberg News on January 24 that "We should not change our policy, we should not change our law, especially now that there is change in the air."
According to the Bloomberg report, "Gutierrez has stumped for opening markets with nominally socialist countries such as China, arguing that commercial ties have led to economic development, adult literacy and reduced poverty. Cuba is a different case, he said Wednesday.
"Cuba is one of the two most restrictive economies in the world," he said. "Would we want Americans to travel to North Korea? Cuba is like North Korea."
Short fillers: Scientists exploring the British settlement in Jamestown, Virginia that was founded in 1607 have found indications of tobacco cultivation dating back to about 1610, probably by British planter John Rolfe. He's given credit for developing the unique Virginia style of tobacco, which helped the economy of the fledgling settlement . . . Havana's La Bodeguita del Medio restaurant and bar was made famous by Ernest Hemingway, and the Cubans have franchised the name in Europe. Now, American versions are opening: trademark owner and restauranteur Michael Ekwall opened a branch in Palo Alto, California and then licensed the name to Joseph Maya in Miami. Maya's version will open this spring, in a two-story complex that will include a walk-in cigar humidor, a Bodeguita-branded cigar made in Nicaragua, 25 styles of mojitos, a V.I.P. membership section that costs $3,000 to $5,000 annually and more . . . an authentic cigar-store Indian dating from the late 19th or very early 20th Century was auctioned for $20,400 by Christie's in New York on January 18 . . . for ideas on what to buy with $100, check out our News & Views archives.
- Rich Perelman in Los Angeles
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Reprinted by permission. Heard in the Humidor is a publication of Perelman, Pioneer & Company. Copyright 2007; All rights reserved.