There's much consternation and gnashing of teeth concerning the FDA decision to regulate premium cigars as all other tobacco products. My speculation, and that's all anyone is doing, is that this will be implemented on the growing/factory level. As such, premium and 'boutique' sources will need to assume a fractional portion of the increased cost to the factory of manufacture. It's the guy, or gal, that's rolling in their garage that won't be able to sell though national channels.

The effect is that a Pete Johnson who's being rolled by Garcia will have a slight uptick in price but business will proceed as usual. In the case of the two Cuban companies, no matter that they have multiple sites of manufacture all over Cuba, the 'inspections,' as with OSHA, are hand in glove as with the FAA manufacturer or repair operation so that it's known when the 'inspection' will occur and what prep standards are to be seen - that day. It'll be a lot easier, and to our benefit, to know that a growing and processing operation is using clean water. That's going to be the bottom line, one hopefully that's already the case.

The marketing distinction of Tatuaje as a subsidiary 'client' of Garcia will be more clearly understood, as Caldwell by Drew Estate or Caldwell by La Zona will be as freely operative but known. The 'brand' distinctions may collapse into subsidiaries of a parent factory/operation. 

As far as flavored products are concerned, the idea is that flavored products are more appealing to children, So a cotton-candy flavored snuff won't get through, but a Bourbon-aged cigar will be fine. Tonquin in 1792 pipe tobacco or all the Altadis miscellaneous won't have a problem. Hence the 1975 to fix those pipe tobacco issues.

The Drew Estate infused might run into 'secrecy' issues, that's already the case with snus, but there's nothing regulatory bodies as the FAA and FDA like more than money - which Swisher certainly has.Importantly, how to tell Swisher 'no' when hookahs have been using flavors for quite some time?Are they going to parse method of delivery when hookah is inhaled and cigars aren't? No, show them (lawyers) some money. That's why the food supply is unsafe and the tort legal industry lives on recalled drugs 'researched' by doctors on the take. Americans can't buy drugs manufactured in Canada but drug counterfeiting is rampant - within the United States. Just don't try to bribe them - directly.

For the most part, nothing will change but prices. In summary, relax, don't worry be happy, the sky will not fall. I speculate. 

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Ted, I'm inclined to agree with you. I've heard through a few sources, the FDA has visited some factories already, so there is a lot of basis to what you say.



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