The Cigar Lounge: Counterfeit Cigars Anger Manufactureres

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 chief executive officer 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 now focusing on higher-level organizers.

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.
Some counterfeiters simply make their own replica packaging at elaborate operations revolving around Miami, where many Cuban-Americans have experience with cigars. Experts say it's sometimes difficult to tell the difference in labels, but it's usually obvious which ones are fake to an experienced smoker."

Many of the bad cigars have a bad odor," said Leora Herrmann, Miami counsel for Altadis USA. "Many of them aren't packed tightly enough, so the cigar feels uneven and lumpy. They might have veins or discoloration."

Real cigars are usually all the same color, she added. They are lined up neatly in the box with all the rings at the same level on each cigar and facing out. Fakes are often of different colors, have loose-fitting rings and can sometimes appear splotchy or moldy.

...not the real deal?...