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Regulating the premium cigar industry: Local store owner worried FDA could drive shops out of business
Kelsey Kruzich / Staff Photo: Bob Carlson smokes a cigar at Two Brothers Cigars in Plano.
By Bill Conrad, bconrad@starlocalnews.com
Republicans and Democrats in Congress rarely agree on anything -- a philosophy that has led to approval ratings approaching single digits. However, one thing lawmakers on both sides of the political spectrum seem to agree upon is that the Food and Drug Administration should stay out of the regulation of premium cigars.
House Bill 1639, which would limit the FDA's regulatory power, has 219 co-sponsors and strong bipartisan support. Among the co-sponsors are Collin County Reps. Sam Johnson and Ralph Hall.
The Tobacco Control Act of 2009 was designed to limit the ability of tobacco companies to market their products to minors by adding graphic images and large warning labels to all packages. However, Bill Spann, CEO of the International Premium Cigar & Pipe Retailers Association, said the regulation of premium cigars is unnecessary.
No specific FDA regulations on cigars have been announced, so the future remains uncertain. However, industry lobbying group Cigar Rights of America states on its website that bans on walk-in humidors and self-serve cigar displays could be on the horizon, as well as limits on the amount of nicotine contained in cigars as well as higher taxes. The ability for cigar companies to advertise their products could also be severely restricted, the CRA says.
The House Bill would define premium cigars as those wrapped in a tobacco leaf, containing no filter and weighing at least six pounds per 1,000 cigars. Many of the cigars sold at gas stations such as Black & Milds and Swisher Sweets would not be classified as premium cigars and would still be eligible for further regulation by the FDA.
The economic effects of the potential regulation make up the core of Spann's argument that H.R. 1639 is necessary to save the industry. With the national unemployment rate still at more than 8 percent, Spann said he feels the government should be working to create jobs, not kill them.
"There are 85,000 American jobs in the premium-cigar industry," he said, adding that most stores are family-owned and employ four to six people. "This would devastate those 85,000 jobs. In today's economy, to take our tax dollars and our representative form of government and do anything that will jeopardize jobs in any way is an anathema to me."
Any new regulations could be a death knell for cigar store owners such as Rick Baldelli, who has operated Two Brothers Cigars in downtown Plano for nine years.
"For those that are still operating, I think it is a no-win situation," said Baldelli, whose shop has five employees. "I just don't think there is anyway around it."
The bipartisan support is not surprising to Bob Carlson, who spent part of Thursday afternoon puffing on a cigar at Two Brothers. The camaraderie found in cigar lounges crosses political lines, he said.
"You meet people in all walks of life," Carlson said. "It transcends and social aspects and social hierarchy. We may sit in here with a police chief or a senator and chat with them like they are everyday folks. When you come into a cigar shop you are just a regular guy."
Regardless of the fate of H.R. 1639 and its companion bill in the Senate, S. 1461, Baldelli said there needs to be a major change in the way the government intervenes in the lives of Americans before other industries face the same potential fate as the premium cigar industry.
"We have a flawed system right now that I think needs a serious overhaul," Baldelli said. "If common sense doesn't prevail over this particular situation it is going to be a mess. How many more people do they want on the unemployment line?"
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