Written by Gary J. Arzt

Saturday, 11 October 2008

User Rating: / 2

davidoff acquires camacho cigars

Davidoff Cigars

Miami, FL ... 11 October ... Yesterday morning I sent a text message to Christian Eiroa seeking comment on information I had received. He responded at 2:58 PM, from Honduras, indicating that he would make no comment until Davidoff put out the Press Release on Monday, 13 October. Christian is still the boss at Camacho; but now, he has a boss!

This is the first acquisition that Davidoff has made since the mid-90s. They did, of course, shed their cigarette business; to Imperial Tobacco, in August 2006. One can intelligently speculate that there is a lot of money sitting around, from that sale that Davidoff will use to further grow their cigar business.

In saying that "Davidoff bought Camacho", we have to understand it could be Davidoff USA or the parent, Group Oettinger Davidoff. In either event, we are sure to see Camacho, in all its iterations, in much wider distribution throughout the world.

Whatever else this acquisition presages for those companies, and the cigar industry, it surely is a vote of confidence in the continued strength of cigar sales; in an era when they are besieged by regulation, approbation and, possibly, additional taxation.

In the thirteen (13) years since they acquired the Camacho name, after Simon Camacho’s death, the Eiroa's, father and son, have done a tremendous job enhancing the brands image and quality and reception in the marketplace. The latest effort was a complete redesign of their packaging and the 10th Anniversary cigar, which followed the introduction of the Triple Maduro, Diploma, Corojo, et al.

The list could go on and on, particularly if you include the brands of Sal Fontana and cigars like Baccarat The Game.

Julio Eiroa had concentrated, primarily, on tobacco growing when he went to work for the Oliva's in Jamastran Honduras, near the Nicaraguan border.

In that same period, Simon Camacho, who had started Miami's first cigar factory, opened the first Nicaraguan cigar factory with another Cuban émigré named Juan Francisco Bermejo. It was 1964 and Camacho had another partner: Anastasio Somoza.

The rest, as they say, is history. The future will be revealed. It is known that Christian Eiroa will remain with Camacho; and it can be assumed (a word fraught with danger when it comes to accuracy) that his father will return to his first love ... growing tobacco.

The only thing Davidoff did not purchase: the tobacco fields.

In an acquisition of this nature, cost-cutting; consolidation and overhead reduction are by words. It remains to be seen how Davidoff will deal with the existing Camacho enterprise. Whatever steps they take, they have acquired an excellent line of highly regarded; well selling cigars.

Christian Eirora & Kevin Godbee

You can view the two part interview with Christian Eiroa by following the links below.

Camacho Cigars Interview I with Christian Eiroa

Camacho Cigars Interview II with Christian Eiroa

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