Counterfeiters have cigar makers smoking mad By CURT ANDERSON Associated Press Writer MIAMI — Cigar aficionados beware: those handmade Montecristos, Cohibas and Romeo y Julietas may not be the premium smokes they seem. Law enforcement and cigar industry officials say counterfeiters are marketing millions of dollars in fake upscale cigars, some even pretending to be authentic Cubans that are illegal to sell in the United States. A recent crackdown has uncovered several major counterfeit operations, including one in Miami that resulted in the seizure of more than $20 million in fake stogies, labels and packaging. “The person that’s hurt the most is the consumer,” said Theo Folz, president and CEO of Fort Lauderdale-based Altadis USA, the world’s largest maker and distributor of cigars. “We have developed products and built up on image and built up an expectation among the consumers. Guys put their money down. They want the real thing.” With its proximity to Cuba and the Caribbean and large population of Cuban expatriates, South Florida has become a national hotbed for cigar counterfeiters. Federal and state law enforcement officials, at the request of Altadis, have made more than a dozen arrests over the past six months with investigators focusing on higher-level organizers. “We’re getting into the bigger targets and the ones who try to conceal it better,” said a U.S. Immigration and Customs Enforcement undercover agent who agreed to be identified only as Ramon to protect his identity. “I think there’s a lot more. We have only gotten the lower-level guys.” Still, what was seized late last year from several warehouses in Miami astounded both police and industry officials. There were enough counterfeit cigar bands, boxes, cellophane and other materials for between 30 and 50 million cigars — sufficient to make a significant dent in the legitimate premium market. “We’ve all gotten an appreciation that counterfeiting is much greater than we thought” said Norman Sharp, president of the Washington-based Cigar Association of America. According to federal government statistics, Americans smoked about 5.1 billion large cigars in 2005 and spent about $3.2 billion on all cigars. Of those, about 321 million were classified as premium — that is, they were handmade, usually comprised of long tobacco filler instead of chopped tobacco, and retailed for at least $1 apiece. Such cigars can run upward of $30 each. Altadis USA, a subsidiary of Spanish tobacco giant Altadis SA, holds the trademark rights to many of the best-known Cuban cigar brands including Montecristo, Romeo y Julieta and H. Upmann. New York-based General Cigar Co. holds the rights to Cohiba, Partagas, Macanudo and other premium brands. Because cigars from communist Cuba cannot be sold legally in the United States, Altadis makes its Cuban heritage cigars marketed in this country in the Dominican Republic. The Spanish parent, however, can market the real Cuban cigars around the world under the same brands. That means anyone who uses those brands to market a cigar as made in “Habana” or as a “Cuban replica” is either violating the U.S. embargo against Cuba or the trademark rights of Altadis, General Cigar and other companies. Altadis USA, which has 7,800 employees and had 2005 revenue of about $700 million, has been leading the charge against counterfeiters using its own private investigators to assist police. -------------------------------------------------------------------------------- © 2006 Times Leader and wire service sources. All Rights Reserved. http://www.timesleader.com |
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