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
