September 2026: STG Merges Cigar.com into Cigora in Major Direct-to-Consumer Consolidation
Scandinavian Tobacco Group (STG) is streamlining its online direct-to-consumer retail footprint by transitioning long-running site cigar.com into cigora.com, effective September 28, 2026. Following the migration, the unified platform will operate under the brand name “CIGORA presented by Cigar.com.” When the transition occurs, all web traffic from cigar.com will automatically redirect to cigora.com. Customer accounts, order history, and accumulated loyalty points will transfer directly to the Cigora platform without disruption. In addition to preserving the product catalog, community features, and accessories previously available on cigar.com, the move grants existing users access to Cigora’s expanded product selection, exclusive items, and updated rewards options.
Company notes indicate the transition is designed to carry forward Cigar.com’s long-standing customer base while leveraging Cigora’s modernized e-commerce infrastructure. Operational priorities focus on maintaining core customer service standards, community engagement, and existing product availability. Additionally, the consolidated platform plans to expand customer retention initiatives by introducing enhanced loyalty benefits, personalized promotional offers, and upgraded rewards opportunities intended to increase long-term user value.
Originally established as an independent e-commerce business in 1996, cigar.com built a dedicated following through its customer service and community forums. The platform was later acquired by Cigars International, which subsequently merged into Swedish Match and ultimately joined STG’s portfolio. STG launched Cigora in 2022 as a next-generation, community-first e-commerce engine designed to modernize its digital retail strategy.
The migration combines two key assets within STG’s network of six U.S. direct-to-consumer web properties: CigarsInternational.com, CigarBid.com, ThompsonCigar.com, PipesandCigars.com, Cigora.com and Cigar.com (phasing out).
September 2026: U.S. Cigar Price Increases Balance Volume Declines
Overall U.S. convenience store cigar sales held virtually flat at $4.11 billion – a 0.3% year-over-year increase – over the 52 weeks ending July 12, 2026. A 6.1% increase in average unit price to $2.17 successfully offset a 5.5% contraction in total unit volume, which settled at 1.90 billion units.
| Product | Dollar Sales | 1-Year % Change | Dollar Share | 1-Year pp Change | Unit Sales | 1-Year % Change | Unit Price | 1-Year % Change |
| Large Mass Cigars | $3.86 B | 1.0% | 93.9 | 0.7 | 1.81 B | -4.7% | $2.13 | 6.0% |
| Premium Cigars | $214 M | -10.2% | 5.2 | -0.6 | 72.7 M | -21.0% | $2.94 | 13.8% |
| Little Cigars | $36.8 M | -6.9% | 0.9 | -0.1 | 10.9 M | -9.8% | $3.37 | 3.1% |
| Total Cigars | $4.11 B | 0.3% | 100.0 | 0.0 | 1.90 B | -5.5% | $2.17 | 6.1% |
Large mass cigars continue to serve as the core cigar segment for convenience retail. The segment generated $3.86 billion in dollar turnover, up 1.0%, and now commands a dominant 93.9% dollar share of the c-store category, representing a gain of 0.7 percentage points year-over-year. Although unit sales dropped 4.7% to 1.81 billion units, a 6.0% price increase to $2.13 per unit protected overall dollar growth across physical store counters.
In contrast, premium handmade cigars experienced sharp contractions within convenience stores, with dollar sales dropping 10.2% to $214 million and unit volume plunging 21.0% to 72.7 million units, despite a 13.8% unit price jump to $2.94. This drop reflects channel migration rather than falling consumer interest, as handmade cigar purchasing remains heavily concentrated in specialty stores and direct-to-consumer online channels not captured in convenience store data. Intense online promotional activity continues to put heavy pressure on convenience store volume.
Meanwhile, the little cigar segment continues to lose presence across retail counters, slipping 6.9% in dollar turnover to $36.8 million and 9.8% in unit volume to 10.9 million units, with average prices rising 3.1% to $3.37. The segment’s ongoing decline is largely driven by local flavor bans, which weigh heavily on little cigars due to their historical reliance on flavored offerings that directly overlap with regulated cigarette alternatives.
August 2026: Ninth Circuit Rejects Cigar Industry Bid to Block California Unflavored Tobacco List
The U.S. Court of Appeals for the Ninth Circuit has rejected a challenge by a group of cigar companies and industry associations seeking to block California’s Unflavored Tobacco List (UTL), affirming a lower court’s decision to deny a preliminary injunction against the state’s requirements. The three-judge panel ruled that California’s UTL requirements are not preempted by the federal Tobacco Control Act (TCA) and, based on representations from the California Attorney General, do not violate the First Amendment.
California’s UTL requires tobacco products to be listed before they can be sold in the state. The system was introduced to support enforcement of California’s ban on the sale of flavored tobacco products. Manufacturers and importers must submit information and certify that their products do not contain a characterizing flavor. The cigar companies argued that the requirements effectively create a state-level product approval system for premium cigars, which they said conflicts with the FDA’s authority under federal law. They also argued that California’s treatment of manufacturers’ descriptions of cigar tasting notes could violate commercial-speech protections.
The Ninth Circuit rejected the preemption argument, finding that the UTL regulates the sale of tobacco products, rather than their manufacture or composition. The court held that such requirements fall within the TCA’s Savings Clause, which preserves state authority over tobacco-product sales. The fact that California requires manufacturers and importers to submit applications does not change the fundamentally sales-related nature of the regulation.
The court also rejected the First Amendment challenge. California represented that it would not reject a qualifying premium cigar from the UTL because of manufacturers’ descriptions of tasting notes, provided the required application and certification were submitted. The court accepted those representations in determining that the industry’s commercial-speech claim was unlikely to succeed.
The ruling is significant because it confirms, at least at the preliminary-injunction stage, that federal recognition of a product as a premium cigar does not shield it from state-level market-access requirements. California can require federally defined premium cigars to satisfy its own listing requirements before they can be sold in the state.
The case began in 2025 as California prepared to implement the UTL. The cigar industry sought emergency relief and a preliminary injunction, but the district court denied the request in December 2025. The Ninth Circuit denied emergency relief later that month, expedited the appeal and heard oral arguments in April 2026 before issuing its decision in August 2026.
The decision does not constitute a final ruling on every aspect of the UTL. However, it makes the industry’s federal preemption challenge considerably more difficult by endorsing California’s distinction between regulating how tobacco products are made and regulating whether they may be sold within the state. For premium cigar manufacturers, the immediate consequence is that California’s UTL listing and renewal requirements remain in effect, potentially adding significant compliance costs.
August 2026: U.S. Cigar Market Holds Turnover Flat as Price Gains Neutralize Volume Declines
Retail turnover for the U.S. cigar category across convenience store channels remained essentially flat year-over-year, as strategic pricing adjustments effectively offset ongoing volume contractions. According to retail data from Circana for the 52-week period ending June 14, total c-store cigar dollar sales reached $4.11 billion – a slight 0.1% uptick. A 6.0% improvement in price/mix (average price per unit reaching $2.16) completely neutralized a 5.6% drop in overall unit volume, which fell to 1.91 billion units.
| Product Segment | Dollar Sales | 1-Yr % Change | Dollar Share | 1-Yr Share Change | Unit Sales | 1-Yr % Change | Price Per Unit | 1-Yr % Change |
| Cigars (Total) | $4.11 B | +0.1% | 100.0% | 0.0 | 1.91 B | -5.6% | $2.16 | +6.0% |
| Large Mass Cigars | $3.86 B | +0.9% | 93.9% | +0.7 | 1.82 B | -4.8% | $2.12 | +6.0% |
| Premium Cigars | $215.0 M | -10.2% | 5.2% | -0.6 | 74.1 M | -20.8% | $2.91 | +13.3% |
| Little Cigars | $35.9 M | -9.2% | 0.9% | -0.1 | 10.5 M | -11.4% | $3.41 | +2.5% |
The performance of the overall c-store cigar category continues to be heavily driven by large mass cigars, which account for nearly 94% of total category sales. Dollar turnover for large mass cigars expanded by 0.9% to $3.86 billion during the 52-week period. This growth was supported by a 6.0% increase in average price per unit to $2.12, which compensated for a 4.8% decline in unit volume (1.82 billion units). Given their overwhelming revenue scale, price increases in mass cigars remain the primary stabilizer for c-store tobacco category turnover.
In contrast to mass offerings, premium cigars experienced sharp unit volume drops within convenience stores. Unit sales for premium cigars dropped 20.8% to 74.1 million units, while dollar turnover fell 10.2% to $215 million, despite a 13.3% surge in average unit price to $2.91. However, this c-store contraction does not indicate a widespread decline across the broader consumer landscape; overall U.S. demand for premium cigars remains broadly stable. Instead, purchasing activity has increasingly migrated away from convenience channels toward highly promotional e-commerce and direct-to-consumer online channels.
The little cigar segment faces an existential threat following widespread local flavor bans. Annual retail turnover for little cigars in convenience stores has been obliterated, dropping 9.2% to $35.9 million and accounting for less than 0.9% of total category dollar share. Unit volume sank another 11.4% to 10.5 million units. On the heels of another double-digit volume decline, the subcategory appears to be on a direct path toward extinction on c-store shelves.
July 2026:Scandinavian Tobacco Group Hikes U.S. Wholesale Cigar Prices and Tariff Surcharges
Scandinavian Tobacco Group (STG), the world’s largest manufacturer of handmade cigars, has announced price increases across its product lines in the United States, raising both standard wholesale rates and import tariff surcharges. The pricing adjustments affect STG’s expansive portfolio distributed through its two main U.S. operations, General Cigar Co. and Forged Cigar Co. Together, the subsidiaries market approximately 750 cigar SKUs across 21 premium brands. Forged Cigar markets Alec Bradley, Bolivar, Chillin’ Moose, Cohiba (non-Cuban), Diesel, El Rey del Mundo, Havana Honeys, La Gloria, Cubana, Odyssey and Punch. General Cigar markets CAO, Don Tomas, El Titan de Bronze, Excalibur, Hoyo de Monterrey, Humi-Care, Macanudo, Mehari, Panter, Partagas and Room101.
Under the new pricing structure, wholesale costs for most items in STG’s catalog will increase by an average of 4.2%, though select products will see double-digit price hikes. Wholesale prices for approximately 15% of the company’s lineup will remain unchanged. Alongside the base price adjustments, STG is raising its dedicated import tariff surcharge from 6% to 7%. The company introduced the surcharge last year to offset costs stemming from U.S. trade policies. The latest bump reflects recent increases on tobacco imports from key manufacturing hubs in the Dominican Republic and Nicaragua, where tariffs rose from 10% to 12.5%. Tariffs on imports from Honduras remain at 10%.
STG, which owns and operates production facilities across all three countries, noted that the surcharge remains a variable mechanism and will be adjusted downward or eliminated if federal tariffs are reduced or removed.
July 2026: U.S. Premium Cigar Imports Dip 2.3% Through May, But 2026 Pace Remains Strong
U.S. imports of handmade, premium cigars dipped 2.3% during the first five months of 2026, falling to 158.4 million units from 162.2 million during the same period in 2025. Nicaragua, the Dominican Republic, and Honduras continue to dominate the U.S. market, collectively accounting for more than 99% of total shipments.
Nicaragua – the world’s top cigar producer – shipped 97.6 million premium cigars to the United States from January through May, down 4.5% from the 102.2 million units exported during the same period last year. Shipments from the Dominican Republic also contracted, falling 11% to 28.4 million units. Conversely, Honduras posted a strong gain, exporting 30.7 million cigars through May – a 16% increase year-over-year.
Despite the modest early-year decline, long-term trade volume remains historically elevated. In 2025, U.S. premium cigar imports reached 429.8 million units, virtually matching 2024 levels and marking the fifth consecutive year that imports surpassed the 400-million mark. If current import trends hold, 2026 is on track to become the sixth straight year to break that threshold.
June 2026: The U.S. Cigar Segment Secures Revenue Growth Through Pricing Power Amid Volume Declines
The U.S. cigar segment is currently experiencing a volume-to-value transition similar to other traditional tobacco categories, managing to achieve modest revenue gains entirely on the back of retail price increases. According to Circana Total U.S. Convenience data for the 12 weeks ending March 22, 2026, total cigar dollar sales reached $913 million, marking a 1.7% increase over the previous year. However, overall unit volume fell by 4.1% to 422 million units. This divergence highlights a market where consumer demand is contracting or migrating toward modern nicotine formats, forcing manufacturers to lean into pricing power, which drove the average price per unit up 6.0% to $2.16.
An analysis of the subcategories reveals that the overall segment is heavily anchored by a single dominant format:
– Large Mass Cigars: This subcategory effectively dictates the financial health of the entire cigar segment in traditional retail, controlling an overwhelming 94.5% dollar share of the category. It grew its dollar sales by 2.5% to reach $862 million, successfully buffering a 3.3% decline in unit sales (down to 405 million) through a 5.9% price increase per unit to $2.13.
– Premium Cigars: Holding a 5.1% share of category dollars, premium options experienced the sharpest drop in consumer velocity. Dollar sales fell by 10.0% to $46.2 million as unit sales plummeted by 20.1% to 16.1 million, driven by consumers shifting their purchases toward online channels running intense price promotions. In response to this steep volume contraction within tracked retail, the price per unit for premium offerings spiked by a significant 12.7% to average $2.88.
– Little Cigars: Occupying a minor 0.5% sliver of the category, little cigars experienced an 8.8% decline in dollar sales down to $4.21 million. Unit sales fell by 10.2% to 0.57 million units, while the price per unit saw a modest uptick of 1.6%, averaging $7.36.
As the market continuously adapt to broader disruptions – including a fragmented regulatory landscape and the rapid growth of alternative segments like oral nicotine pouches, the performance trends showcase that cigars remain a stable yet volume-challenged category. The segment’s near-term resilience in traditional retail relies almost entirely on the steady, high-volume performance of large mass cigars, which are successfully leveraging incremental price increases to stay in positive financial territory despite losing unit velocity.
April 2026: U.S. Court Finalizes Legal Definition of “Premium Cigar,” Securing FDA Exemption for the Category
U.S. federal court rulings have established a legal definition of what qualifies as a “premium cigar,” ending a long-running dispute over FDA oversight and confirming that only cigars meeting strict traditional production standards fall outside the agency’s regulatory scope.
Under the court-adopted definition, a premium cigar should meet the following specifications:
– Handmade or hand-rolled
– Wrapped in whole tobacco leaf
– Contain a 100% leaf tobacco binder
– Use at least 50% long-filler tobacco by weight
– Have no filters or non-tobacco tips
– Contain no characterizing flavor other than tobacco
– Include only tobacco, water, and vegetable gum, with no other non-tobacco additives beyond specified limits (six pounds per 1,000 units).
The ruling, reaffirmed in April 2026, maintains that cigars meeting this definition remain outside the scope of FDA “deeming” regulations, a position that has been repeatedly upheld in earlier court decisions. The latest judgment also rejects efforts to broaden the category to include flavored or machine-made products, reinforcing a narrower interpretation aligned with traditional handmade cigar characteristics.
Overall, the decision concludes a decade-long legal process by locking in a regulatory distinction between premium handmade cigars and other cigars, with implications for how the category is treated under U.S. tobacco law going forward.
April 2026: U.S. C-Store Cigar Category Faces Volume Pressure but Remains Revenue-Relevant
Machine-made cigars – including large cigars, cigarillos, and other mass-produced formats – continue to dominate convenience store cigar sales, underscoring the category’s reliance on high-volume, lower-price products rather than premium offerings. Flavored products remain a defining feature of the segment, with 51% of cigars and cigarillos sold in c-stores featuring characterizing flavors other than tobacco, highlighting sustained consumer demand despite ongoing regulatory scrutiny. Overall, cigars account for around 5% of total c-store tobacco sales, while premium cigars represent only about 1% of cigar sales within the channel, indicating their limited presence in mainstream retail.
Looking ahead, category volume is expected to decline at a low single-digit rate in 2026 and continue on a similar trajectory through 2030, reflecting structural pressures and a more mature market. However, dollar sales are projected to see moderate near-term growth, supported by pricing dynamics. Notably, cigars are still expected to account for roughly 20% of other tobacco product (OTP) dollar sales in 2025, reinforcing their ongoing importance within the broader tobacco category despite volume headwinds.
March 2026: Legislative Pressure Builds on the U.S. Cigar Industry
Legislative activity affecting the cigar industry in the United States has accelerated in recent months, particularly at the state level. A number of proposals introduced in early 2026 focus on taxation, retail restrictions, and limits on distribution channels such as online sales. While premium handmade cigars are sometimes treated differently from cigarettes or flavored tobacco products, several state legislatures are considering measures that could indirectly impact the segment through broader tobacco control policies. The current legislative landscape reflects a growing mix of tax increases, regulatory restrictions on retailers, and proposals affecting mail-order cigar sales, developments that could gradually reshape how cigars are sold and distributed across different states1.
| State | Legislative Proposal | Key Provisions | Potential Impact on Cigar Industry |
|---|---|---|---|
| Connecticut | Retail restrictions bill | Proposal would limit how much retail floor space can be used for taxed tobacco products and potentially tighten operational rules for cigar retailers. | Could constrain cigar shops and lounges despite recent regulatory changes that allowed new cigar bars after a long moratorium. |
| West Virginia | HB 5631 – Tobacco tax increase | Proposal would raise cigar tax from 12% to as high as 51% of wholesale price. | Would substantially increase retail prices and place the state among the highest-tax jurisdictions for cigars. |
| Tennessee | Online sales restrictions | Proposed legislation could restrict or prohibit the shipping of premium cigars directly to consumers. | Mail-order sales represent a large share of premium cigar purchases, meaning restrictions could disrupt an important distribution channel. |
| New Jersey | Flavored tobacco restrictions | Proposed legislation includes a ban on flavored non-premium cigars alongside flavored cigarettes and other nicotine products. | Could reduce availability of certain machine-made cigars and flavored products. |
| Multiple states (various proposals) | Shipping and delivery regulations | Some legislative efforts seek to limit direct-to-consumer shipping of tobacco products. | Particularly significant for premium cigar consumers who frequently purchase products online rather than through convenience retail. |
Most legislative pressure on the cigar industry in 2026 is emerging from state-level initiatives rather than federal regulation. Many of the proposals currently under consideration focus on raising excise taxes on cigars, tightening operational rules for tobacco retailers, or limiting direct-to-consumer shipping and online sales. While premium cigars are sometimes exempted from broader tobacco measures, these policies could still influence pricing, distribution channels, and retail operations across several states if enacted.
January 2026: Heritage brands and classic sizes continue to dominate the U.S. premium cigar market
The latest U.S. retailer rankings of best-selling cigar brands highlight a market that remains firmly anchored in handmade, premium cigars, with heritage, consistency, and long-standing retailer relationships continuing to outweigh scale or corporate ownership. These top brands – representing the most requested and highest-moving cigars in tobacconist humidors – reflect a preference among American smokers for quality, tradition, and particular vitola styles.
At the top of the rankings sit Padrón and Arturo Fuente, each named by over half of surveyed retailers as best-selling brands2. Their leadership reflects decades of brand equity, vertically integrated production, and disciplined portfolio management, with limited reliance on line extensions or aggressive pricing. Both are family-owned and operate primarily out of Nicaragua (Padrón) and the Dominican Republic (Fuente), two countries that continue to dominate premium cigar manufacturing and retailer inventories.
| Rank | Brand | Owner | Information |
|---|---|---|---|
| 1 | Padrón | Padrón Cigars, Inc. (family-owned) | Iconic Nicaraguan producer known for consistency, aged tobaccos, and ultra-premium lines like the 1964 and 1926 Series |
| 2 | Arturo Fuente | Fuente family | One of the most influential premium cigar families; vertically integrated Dominican production at Château de la Fuente |
| 3 | Drew Estate | Swisher International | Acquired by Swisher in 2014; Nicaragua-based producer blending traditional premium cigars with infused and flavored innovation. A premium / boutique cigar leader (Liga Privada, ACID, Undercrown) |
| 4 | Perdomo | Perdomo Cigars (family-owned) | Founded by Nick Perdomo Jr.; vertically integrated Nicaraguan manufacturer with strong value-for-money positioning |
| 5 | My Father | García family | Founded by José “Pepín” García; Nicaragua-based, known for fuller-bodied blends and strong retailer loyalty |
| 6 | Davidoff | Oettinger Davidoff Group | Swiss-owned global luxury cigar house; premium branding with core production in the Dominican Republic |
| 7 | Oliva | Vandermarliere Cigar Family (J. Cortès) | Belgian-owned since 2016; Nicaragua-focused production with strong presence in the premium value segment |
| 8 | Rocky Patel | Rocky Patel Premium Cigars | Founder-led brand emphasizing blending, branding, and wide portfolio; production mainly in Nicaragua and Honduras |
| 9 | Ashton | Ashton Distributors, Inc. | U.S. brand owner; cigars produced exclusively by Arturo Fuente in the Dominican Republic under long-standing partnership |
| 10 | J.C. Newman | J.C. Newman Cigar Company (family-owned) | Oldest family-owned U.S. cigar company; production in Nicaragua and at historic El Reloj factory in Tampa |
Beyond the top two, the list remains heavily skewed toward independent, family-controlled producers. Perdomo and My Father, both Nicaragua-based, combine vertical integration with broad yet tightly managed portfolios, delivering strong humidor presence and reliable consumer demand. Rocky Patel and J.C. Newman further underscore the enduring role of founder-led brands, with J.C. Newman also standing out as the oldest family-owned cigar company in the United States and one of the few still producing cigars domestically in Tampa alongside Nicaraguan operations.
While corporate ownership has grown in the premium segment, it remains selective. Drew Estate, now part of Scandinavian Tobacco Group (STG), is among the best-selling names despite its acquisition, buoyed by strong lines such as Liga Privada and Undercrown. Oliva, owned by Belgium’s Vandermarliere Cigar Family, has maintained its market position through competitive Nicaraguan production and retailer loyalty. Davidoff, under the Swiss Oettinger Davidoff Group, occupies a distinct luxury tier with Dominican production and global brand presence.
Size preference plays a significant role in what actually sells off the shelves. The clear and enduring trend is that American cigar smokers favor toros. According to the latest data, 66.2% of retailers named toro (also known as corona gorda) as their best-selling cigar size, far outpacing other formats. Toros are defined as cigars roughly 5½ to 6½ inches long with ring gauges between 46 and 59, combining a balanced smoking experience with a satisfying draw — a “Goldilocks” vitola that is long enough for flavor development but not so large as to demand excessive time or cost. Behind toros, the next most popular formats were robustos (16.9%) and grandes (10.8%), while traditional sizes like coronas and lonsdales registered relatively minimal share. This shift toward toros reflects broader consumer trends toward moderate to fuller ring gauges and a preference for formats that deliver both presence and complexity without overcommitment.
Overall, the rankings suggest that consolidation has not fundamentally altered retailer preferences in the U.S. premium cigar market. Family ownership, vertically integrated production, and long-established reputations remain the primary drivers of sales performance, with heritage brands commanding significant humidor space and consumer loyalty. Meanwhile, vitola preferences – especially the dominance of toros – provide insight into how smokers are choosing to enjoy these premium products, balancing tradition with modern tastes.
January 2026: California publishes the first-ever Unflavored Tobacco List
California’s Attorney General published the first-ever Unflavored Tobacco List (UTL), a registry of tobacco and nicotine products that are legally permitted for sale under the state’s flavored tobacco ban. The UTL was created under Assembly Bill 3218 as part of California’s effort to enforce and expand its ban on most flavored tobacco and vaping products, originally passed in 2020 and amended in 2024 to require the list’s publication.
The initial publication includes more than 6,200 products, with around 70% estimated to be cigars (- most of which are handmade) and the Scandinavian Tobacco Group having more than 10% of the total entries. Several cigar companies and industry groups have sued to challenge aspects of the UTL’s regulations, but their legal efforts have so far failed to halt the list’s publication.
December 2025: California Federal Court Rejects Cigar Industry Bid to Block UTL Enforcement
In a significant legal development, a U.S. federal court denied the cigar industry’s request for a preliminary injunction aimed at halting California’s Unflavored Tobacco List (UTL) from applying to so-called “premium cigars.” The lawsuit was filed in October 2025 by seven family-owned cigar companies, the Cigar Rights of America (CRA), and the Premium Cigar Association (PCA), challenging how the UTL rules affect their products ahead of the law’s enforcement deadlines. California’s UTL, part of broader flavored tobacco legislation, requires tobacco products to be on a state-maintained list of unflavored products to remain legal for sale starting January 1, 2026, with any unlisted product barred from the market.
The U.S. District Court for the Central District of California ruled that the plaintiffs failed to show they were likely to succeed on the merits of their claims, including preemption under the federal Tobacco Control Act and free speech violations. The Court found that the UTL regulates the sale of finished products rather than manufacturing, rejected arguments that the law created an impermissible parallel federal regulatory system, and determined the UTL does not prohibit companies from describing their products’ flavors so long as they are correctly identified as unflavored. The ruling allows California to proceed with publishing the initial UTL and enforcing its provisions, though the plaintiffs have already signaled an appeal to the Ninth Circuit.
December 2025: Cigar sales is down modestly in U.S. convenience stores over the past 12 months
In the 12-week period, ending October 5, 2025, total cigar sales is down 1.2% to $962 million retail turnover ($4.2 billion annual run-rate) in the U.S., according to the Circana convenience store data. Little cigars, a direct competitor to cigarettes, were obliterated by the flavor bans and experienced c.15% decline in sales volume and value. In the large mass cigar segment, industry compensated 6% volume decline with 5.7% price increase and the dollar sales remained flattish around $907 million ($3.9 billion annual run-rate). More than three quarters of premium (handmade) cigars are distributed in channels other than the multi-outlet and c-store channel; therefore, the volume (-19%) and pricing (+11.5%) development does not offer a representative picture for this segment.
October 2025: Cigars International introduces free shipping on all orders
Cigars International, the world’s largest cigar retailer owned by Scandinavian Tobacco Group (STG), announced that it will offer free shipping on all orders with no minimum order value and no codes required. Other STG online stores, cigar.com, cigarbid.com, thompsoncigar.com, pipesandcigars.com and cigora.com, and large competitors, jrcigars.com and famous-smoke.com, do not offer standard free shipping. Typical minimum order value in the industry is $99 for free shipping and most online retailers provide free shipping for all orders as a limited-time promotional offer – with the exception of Cigar Page which offers standard free shipping since inception3. It is yet to be seen whether Cigars International’s move will establish standard free shipping as the new norm in the industry.
October 2025: Cohiba trademark battle continues
Scandinavian Tobacco Company (STG)’s U.S. subsidiary General Cigar Co. filed arguments in the nearly three-decades-long fight with Cuba over the ownership of the COHIBA trademark in the U.S. The brief follows a recent court ruling (May 2025) that allowed the U.S. Patent and Trademark Office (USPTO) to move forward with canceling General’s two COHIBA trademarks. The ruling was based on the high likelihood of prior knowledge of COHIBA brand when General filed for the trademark in the U.S. in March 1978 and the trademark protection rights provided to Cubatabaco – the Cuban-state company that owns COHIBA outside the U.S. – by the Inter-American Convention (IAC). General asks the U.S. Court of Appeals for the Fourth Circuit to throw out the decision because of a complicated web of procedural moves that involve multiple other judicial bodies. General is asking for a de novo review, meaning that the appeals court would hear a new trial.
General Cigar Co. sells the non-Cuban COHIBA brand exclusively in the U.S.. The same cigars are sold in the international markets under the SILENCIO brand name. Habanos S.A., which is half-owned by Cubatabaco, sells the Cuban-made COHIBA outside the U.S.
October 2025: Cigar Industry sues California Attorney General
In a battle over the right to sell cigars in California, one of the largest cigar markets in the United States, a coalition of cigar industry players sued Attorney General of the State of California. The industry defendants are challenging California’s new “Unflavored Tobacco List,” and the policy of having to register and verify traditional cigars as unflavored, or risk having them banned for sale in the state.
September 2025: U.S. handmade cigar imports increased 4.6% in the first half of 2025
U.S. handmade cigar imports are up 4.6% in the first half of 2025, with 200.9 million premium, handmade cigars shipped through the end of June 2025, despite the tariff uncertainity and market slowdown expectations. Each of the three largest cigar-producing countries reported shipment increases: imports from Nicaragua is up 2.8% to 123.5 million cigars, the Dominican Republic is up %4 to 41.1 million cigars and Honduras is up 12.1% to 34.1 million.
Nicaragua accounts for 61.8% of the total imports while the Dominican Republic and Honduras have 20.1% and 17% share in imports, respectively. Collectively, these three countries account for 98.9% of premium, handmade cigar imports into the United States. The rest of the imports (1.1% in total) are made from Costa Rica, the Philippines and Mexico.
August 2025: Scandinavian Tobacco Group increases cigar prices in the U.S.
Scandinavian Tobacco Group (STG) increased the cigar prices in the U.S. The increase is an annual price adjustment, unrelated to the tariffs. Previously, STG implemented 5% tariff surcharge, instead of a full price list revision, to account for the tariffs; the surcharge will be eliminated immediately, if the tariffs are removed4.
STG has three different wholesale cigar operations in the U.S.:
– General Cigar Co.: CAO, Don Tomas, Macanudo, Odyssey, and the non-Cuban versions of Cohiba, Hoyo de Monterrey, Punch and Sancho Panza
– Forged Cigar Co.: Alec Bradley, Chillin’ Moose, Diesel, Los Statos, Room101 and the non-Cuban versions of Bolivar, El Rey del Mundo, La Gloria Cubana and Partagas
– Meier & Dutch: 5 Vegas, Ave Maria, Man O’War, Nica Libre and various Buffalo Trace-branded cigars.
The price adjustment applies to the General Cigar and Forged Cigar portfolio. Moreover, STG discontinued 34 products across the General and Forged portfolio, most of which are from the Alec Bradley brand acquired in early 2023.
June 2025: Handmade cigar imports to the U.S. fell by 8.7%
In the first two months of 2025, handmade cigar imports to the United States fell by 8.7% year-on-year basis. The decrease comes after a period of considerable growth in the cigar market, which boomed from 338 million handmade cigars in 2019 to 465 million in 2022. Following a contraction in 2023, the category recorded a slight gain of just under 1% in 2024 with a shipment of 430 million units. The reported decline in the first two months of 2025 does not reflect the impact of the tariffs, which lately have been a source of concern for the category.
The sharpest decrease came from Honduras, the third-largest producer of handmade cigars for the U.S. market. Honduras shipped only 6.2 million handmade cigars to the United States in the first two months of 2025, down 19.3% when compared to the same period for 2024. Nicaragua, the world’s largest producer of handmade cigars, shipped 29 million cigars, down 9.3%. Dominican shipments contracted by 4.1%, to 12.5 million cigars. These top-3 producers account for some 99% of handmade, premium cigar shipments to the United States.
May 2025: Cigar sales is down modestly in U.S. convenience stores over the past 12 months
In the U.S. multi-outlet and convenience store channel, cigar sales volume declined 8.0% to 2.02 billion units in the 52 weeks ending April 20, 2025 (Circana data). Little cigars, a direct competitor to cigarettes, were obliterated by the flavor bans and experienced 70.4% decline in sales volume. Despite the retail prices almost doubling to $6.95 per pack, the little cigar segment sales declined by 42.2% in this period.
In the large mass cigar segment, industry compensated 7.6% volume decline with 8% price increase and the dollar sales remained flattish around $3.8 billion. More than three quarters of premium (handmade) cigars are distributed in channels other than the multi-outlet and c-store channel; therefore, the volume (-9.9%) and pricing (+3.2%) development does not offer a representative picture for this segment. Overall, the cigar catagory dollar sales is down modestly (-0.6%) to $4.08 billion in the U.S. multi-outlet and c-store channel – holding up much better than the cigarette category (i.e. dollar sales down 4.2% in the same period).
May 2025: Scandinavian Tobacco increases the U.S. cigar prices by 5%
Scandinavian Tobacco Group (STG), the largest cigar company in the world, increased the prices of the cigars it sells in the U.S. by 5%. The change applies to the wholesale orders placed by retailers on STG brands. STG sells more than two dozens of cigar brands in the U.S. through three separate wholesale operations:
– General Cigar Company: CAO, Don Tomas, Macanudo, Odyssey, and the non-Cuban versions of Cohiba, Hoyo de Monterrey, Punch and Sancho Panza
– Forged Cigar Company: Alec Bradley, Chillin’ Moose, Diesel, Los Statos, Room101 and the non-Cuban versions of Bolivar, El Rey del Mundo, La Gloria Cubana and Partagas
– Meier & Dutch: 5 Vegas, Ave Maria, Man O’War, Nica Libre and Buffalo Trace.
The price increase comes in the form of an import charge and STG retains the flexibility to revise the rate up or down as the tariffs are adjusted. In April 2025, the U.S. announced 10% tariffs for the products imported to the U.S. from the Dominican Republic, Honduras and Nicaragua (i.e. 19% intially, reduced to 10% later). STG produces its cigars in the Dominican Republic, Honduras and Nicaragua.
STG’s main competitor in the U.S., Altadis USA, also increased its prices by 5% in the form of a surcharge added to invoices while the list prices remain unchanged (similar to the STG). Altadis U.S.A. sells Aging Room and the non-Cuban versions of H. Upmann, Montecristo and Romeo y Julieta in the U.S. Altadis USA manufactures its cigars in the Dominican Republic and Honduras. It also has a contract manufacturing arrangement with A.J. Fernandez Cigars in Nicaragua.
Smaller cigar manufacturers, including Artesano Del Tobacco (Viva La Vida), CLE Cigar, Foundation Cigar, JRE Tobacco, Oscar Valladares Tobacco, RoMa Craft Tobac, Southern Draw Cigars and Villiger Cigars North America, also increased their wholesale prices in the U.S. by ¢15-50 cents per cigar in order to offset the financial impact of the tariffs.
May 2025: Cohiba trademark battle continues
The legal battle for the Cohiba trademark, Cuba’s flagship luxury cigar brand, is ongoing for almost three decades and Cubatabaco scored another win against Scandinavian Tobacco’s General Cigar Company in the latest court ruling: the Judge upheld Trademark Trial and Appeal Board (TTAB)’s 2022 decision that canceled General Cigar’s Cohiba trademark registration in the United States. According to the Judge, Cubatabaco’s trademark was protected under the Inter-American Convention (IAC), a 1929 law that protects international trademarks. In February 2023, General Cigar had filed a lawsuit to reverse the TTAB’s 2022 decision5.
According to the legal document, Cubatabaco applied for the Cohiba trademark in September 1969 and was granted registration on May 31, 1972. Nearly six years later, on March 13, 1978, General Cigar applied to register Cohiba with the United States Patent and Trademark Office (USPTO). Registration was issued on February 17, 1981. The Court rejected General Cigar’s claim that Cohiba trademark was lapsed from non-use in the 1970s and decided that TTAB’s cancellation of General Cigar’s registration was valid under the Article 8 of the IAC as General Cigar had knowledge of Cubatabaco’s use of Cohiba for cigars in Cuba.
General Cigar currently sells non-Cuban versions of the Cohiba cigar brand in the United States, where Cuban Cohibas cannot legally be sold. Cuban company Cubatabaco, which owns the Cohiba name and the rights to market Cohiba internationally, challenged the legality of the U.S. trademark and first filed a lawsuit in January 1997. The case has been in litigation ever since with losses and victories for both sides. The latest decision does not mean that General Cigar’s Cohiba cigars will be removed from the shelves in the U.S. as General Cigar has a pending appeal with the TTAB, filed in 2023, and is likely to appeal the latest court decision as well.
April 2025: United States imported 430 million handmade cigars in 2024
The United States imported 430 million premium, handmade cigars in 2024, up 0.9% from the 426.3 million in 2023, according to the data released by the Cigar Association of America. 2024 marks the fourth consecutive year where imports have exceeded 400 million units – significantly above the pre-Covid days, but 7.5% below the 465 million peak in 2022.
253.1 million cigars are imported from the handmade cigar market-leder, Nicaragua – up 2.7% over 2023 and accounting for 58.8% of the shipments to the United States in 2024. The Dominican Republic ranks second in imports with 106 million cigars (down 1.8%) and Honduras ranks third with 67.4 million cigars (down 3.3%). The Big Three make up 99.2% of the handmade cigars imported to the United States. Costa Rica ranks fourth with 2.5 million cigars and a large year-on-year increase of 44.9%. No other exporter reached the one-million-unit mark.
April 2025: New tariffs will result in higher prices on cigars and cigar accessories in the U.S.
The executive order on new tariffs, signed on April 2, is set to result in higher prices on cigars and cigar accessories in the United States. Cigars coming into the United States from the Dominican Republic and Honduras are subject to 10% tariff. Cigars from Nicaragua, the largest producer of handmade cigars, will be subject to a tariff of 18%. Tariffs will cost the end consumer anywhere from 50 cents to as much as $2.10 more for each handmade cigar in a zero-tobacco tax state and even more in states with taxes on handmade cigars. Higher cigar prices could become effective by mid-2025 when the existing inventories deplete6.
Handmade cigar is one of the most import-dependent categories in the U.S. A cigar can be rolled in the Dominican Republic using a mix of tobaccos from many countries, such as Ecuador, Nicaragua, Cameroon, Mexico, the United States or any combination. The box that holds it might be made in China, the lighter used to set it aflame might come from France, the cutter from Germany, the band adorning it printed in the Netherlands. Nearly all of the handmade cigars smoked in the United States are imported due to the labour-intensive nature of the production process. While there are some small factories that roll cigars in the U.S., they represent less than 1% of the entire handmade cigar market. In 2024, the United States imported more than 400 million handmade cigars, 99% of them rolled in Nicaragua (60%), the Dominican Republic (24%) and Honduras (15%).
The import price for a handmade cigar varies, but is typically in the range of $2 to $4 (- it could be even lower if a brand owns its own cigar factory, rather than contracts to manufacture). When a cigar is imported into the U.S., the importer pays the federal excise tax capped at 40 cents per cigar. Most handmade cigars have a wholesale price that is half of the Manufacturer’s Suggested Retail Price (MRSP). As the tariffs are imposed on the import price, a 40-cent tariff could imply $1.24 increase on the MRSP due to the value chain impact (i.e. each player upping its absolute share). Cigars made in the U.S. will also be impacted due to the tariffs to be imposed on the imported tobacco.
Much like cigars, cigar accessories are largely made outside of the United States. Nearly all the jet-flame lighters used in the cigar business are made in China. Chinese goods will be subject to 54% tariff (i.e. 20% original tariff plus the 34% recent addition).
March 2025: Scandinavian Tobacco Group rationalizes its cigar portfolio
Scandinavian Tobacco Group (STG) discontinued more than 50 products from its Alec Bradley, CAO, Cohiba, Hoyo de Monterrey and La Gloaria cigar brands. Alec Bradley, which was acquired by STG in 2023, is the most affected brand. STG has been in the process of portolio rationalization since October 2024.
STG is the market leader in the U.S. in both handmade and machine-rolled cigars. In 2021, STG created a new distribution company called Forged Cigar and split its brands into two groups. Bolivar Cofradia, Chillin’ Moose, Diesel, La Gloria Cubana and Partagas brands were placed under Forged, while CAO, Cohiba, Hoyo de Monterrey, Macanudo, Punch and other brands remained under General Cigar.
March 2025: US cigar sales grew only by +1.4% at the retail in 2024
In 2024, cigar market compensated 7.9% drop in volume through 10% unit price increase to deliver a low single-digit sales growth (+1.4%) in the USA. The category is driven by the large mass cigars which generate more than 93% of sales. Actually, two smaller segments, premium cigars and little cigars experienced sales decline.
Little cigars, a direct competitor to cigarettes, were obliterated by the flavor bans and experienced 73.4% decline in sales volume. Despite the retail prices more than doubling to $6.2 per pack, the little cigar segment sales declined by 45% in 2024. As more cities mull over local flavor bans, including the one to become effective on March 18, 2025 in Denver, little cigars are on the path to extinction from retail.
Volume decline is more modarete for the premium cigars (-4.4%) which are exempt from flavor bans. However, soft pricing (+2.4%) caused low single-digit (-2.1%) sales decline in 2024. Most recently, Scandinavian Tobacco Group (STG) reported that handmade (premium) cigar market declined by 5% in 2024 in the USA. Read more: Scandinavian Tobacco: FY24. In the U.S., premium cigar is legally defined as a cigar that is wrapped in whole tobacco leaf, contains a 100% leaf tobacco binder, contains at least 50% (of the filler by weight) long filler tobacco (i.e., whole tobacco leaves that run the length of the cigar), is handmade or hand rolled (i.e. no machinery was used apart from simple tools, such as scissors to cut the tobacco prior to rolling), has no filter, non-tobacco tip or non-tobacco mouthpiece, does not have a characterizing flavor other than tobacco, contains only tobacco, water and vegetable gum with no other ingredients or additives and weighs more than six pounds per 1,000 units.
Meanwhile, in 2024, cigar accessories recorded a strong year with 15% growth in sales to more than $235 million in convenience stores7.
February 2025: The decline in the US cigar market continues
The US cigar market is in decline. Data from Management Science Associates Inc. (MSA) indicates that cigarillos experienced nearly a 4% decline in wholesale shipments across all channels in 2023, with an anticipated decline of 6% to 8% in 2024. Specifically, in the convenience store and gas station channel, cigarillo volume decreased by more than 12% for the 52 weeks ending June 29, 2024, compared to the previous year. Filtered cigars saw a 16% volume decline in the same period. Recall that the federal tax code classifies cigars weighing less than 3lbs per 1000 pieces as “little cigars” (filtered cigars) and more than 3 lbs per 1000 pieces as “large cigars” (cigarillos).
Factors Contributing to the Decline:
– Post-pandemic, higher employment rates mean more consumers are in work environments, making it challenging to find time to smoke cigarillos. This has led some to switch back to cigarettes, vapes or nicotine pouches.
– Production issues with natural leaf cigarillos affect the supply to the market.
– Filtered cigars, now taxed similarly to cigarettes, have lost their significant price advantage. The rise of deep-discount cigarette brands further intensifies this competition.
– Local bans on flavored tobacco products have driven consumers to black and grey markets to obtain their preferred flavors, leading to untracked sales, especially in states like California and Massachusetts.
Despite the decline, cigars remain a significant category for convenience stores. Retailers are exploring new options for category growth and leveraging pricing strategies & data analytics to boost cigar sales. Nevertheless, it is only natural for retailers to adjust their displays to accommodate evolving consumer preferences, particularly to cater to the increasing demand for vape and nicotine products.
References:
- https://www.cigaraficionado.com/article/an-update-on-current-legislation-targeting-the-cigar-industry ↩︎
- https://www.cigaraficionado.com/article/2025-cigar-insider-retailer-survey-top-brands-in-america ↩︎
- https://halfwheel.com/cigars-international-introduces-free-shipping-on-all-orders/455325 ↩︎
- https://halfwheel.com/stg-raises-prices-for-2025-discontinues-34-items/453460 ↩︎
- https://www.cigaraficionado.com/article/cohiba-vs-cohiba-another-win-for-cuba ↩︎
- https://www.cigaraficionado.com/article/cigar-prices-to-rise-due-to-new-u-s-tariffs ↩︎
- https://cstoredecisions.com/balancing-the-backbar ↩︎
