Cigars: Compounding variability

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Cigar Tobacco and its Required Quality

Michael D. Hartley, MSc Universal Leaf Tobacco Company

Dark Air-Cured Group

October 10, 2017 Kitzbühel – Austria

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Outline

• Cigar definitions • Differences among cigars • Cigar tobacco explained • Impact of quality • How wrapper is used • Making a hand-made cigar • Cigar/Cigarette Comparison • Summary

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Cigar Definitions

Cigar: any roll of tobacco wrapped in leaf tobacco substance containing tobacco Little Cigar: cigars weighing no more than three pounds per thousand Large Cigar: cigars weighing more than three pounds per thousand Source: 15 U.S.C. § 1332

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Cigar Definitions (cont.)

Premium cigar: -hand-made cigar -is made of 100% natural tobacco -usually uses long filler -very rarely flavored Machine-made cigar: -made by machine -usually a smaller sized cigar or cigarillos -short filler is used -homogenized sheet commonly used -may be flavored

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Difference Among Cigars

Construction: - can be 100% natural leaf - can be combination natural leaf/reconstituted wrapper or binder - filler can be long filler or short filler - normally a blend of fillers from different stalk positions, seed types, and/or origins - filtered (tipped) or non-filtered - hand-made or machine-made - may or may not be flavored

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Difference Among Cigars (cont.)

Size and Shape: -wide range of various sizes, shapes -in a hand-made cigar there can be variations within a single size/shape

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Difference Among Cigars (cont.) 2017

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Cigar Tobacco Explained Long filler: -used in premium cigars -made into frog-strips Short filler: -threshed, cut tobacco, or bits/pieces from long filler processing Binder: -used to hold together the filler -can come from wrapper production or filler production -needs to be a sound leaf Wrapper: -the outer covering of a cigar -usually requiring a uniform, pretty appearance

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Impact of Quality (cont.)

Filler tobaccos Long filler -sound leaves made into “frog-strips” Broken filler -broken leaves also made into ‘frog-strips” Short filler -can be pieces from long filler production or threshed

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Cigar Tobacco Explained (cont.)

Fermentation: -most cigar types receive some type of fermentation -process that is a continuation of the ripening and curing process to develop aromatic characteristics and uniform/darken colors -time period can be from 1-8 months -fermentation methods vary from company to company -normally heat development occurs

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Cigar Tobacco Explained (cont.)

Fermentation: -piles are turned when the desired (cont.) rise in temperature is met or number of days -fermentation is complete when the desired color and/or aroma is achieved

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Cigar Tobacco Explained (cont.)

Seed types: -Cuban seed -Connecticut Shade -Connecticut Broadleaf -PA 41 -Sumtra -Besuki -Cameroon -Olor -Arapiraca -Mata Fina/Mata Norte -Dark fire-cured -various local dark air-cured

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Cigar Tobacco Explained (cont.)

Seed types: -within seed types there are many varieties: Cuban seed in the Dominican Republic: -Corojo 99 -Habana 2000 -Vuelta Abajo, -Criollo 98, -Piloto Cubano, etc. -within varieties farmers/suppliers have their own selections

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“Pursuit of perfect leaves”

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“Many obstacles in the road”

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“CPA application”

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“Cleaning up of bottom leaves”

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“Cleaning up of bottom leaves” (cont.)

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“Harvesting -not making the cut”

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“Harvested leaves”

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“Harvested leaves”

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“Shade grown”

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“Sun grown”

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“Fermentation piles”

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“Fermentation piles” (cont.)

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“Fermentation piles” (cont.)

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“Fermentation: carton-box sweating”

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“Sorting”

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“Sorting- leaf by leaf”

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“Buying – leaf by leaf”

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“Specific colors”

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Impact of Quality Sorted wrapper is sold by individual bales or boxes of 35-60 Kgs each. All the leaves in the box are “Guaranteed” to be the same grade, color, and size. Grade Color Size 1 BW 21” 2 LB 19” 3 LW 17” 4 LL 15” 2LX/RX LG 13” 3LX/RX GW 4LX/RX SP1 SP2

XLTD1 ***420 possible grades*** XLTD2 Binder Binder dirty/spotted LL (filler)

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Impact of Quality Comparison of quality and price

2 LB 19”

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Impact of Quality Comparison of quality and price Description Net Kg US$/Kg Total$US 2 LB 19” 35 $85.98 $3009.30 2RX LB 19” 35 $50.60 $1771.00

2RX LB 19”

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Impact of Quality Comparison of quality and price Description Net Kg US$/Kg Total$US 2 LB 19” 35 $85.98 $3009.30 2RX LB 19” 35 $50.60 $1771.00 SP1 LB 19” 35 $41.80 $1463.00

SP1 LB 19”

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Impact of Quality Comparison of quality and price Description Net Kg US$/Kg Total$US 2 LB 19” 35 $85.98 $3009.30 2RX LB 19” 35 $50.60 $1771.00 SP1 LB 19” 35 $41.80 $1463.00

Binder SP/Dirty

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Impact of Quality (cont.)

Comparison of quality and price - wrapper Description US$/Kg % decrease 2 LB 19” $85 2RX LB 19” $50 41%↓ SP1 LB 19” $41 52%↓ Binder SP/Dirty $11 87%↓

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Impact of Quality (cont.)

Comparison of quality and price - filler tobacco Description US$/Kg %loss Ligero Grande A $19.80 (frog-strip) Ligero Grande Roto $17.60 (frog-strip) 12%↓ Viso Banda $18.70 (whole leaf) Picadura $2.50 (short filler pieces) 87%↓ (All the above are Nicaragua tobaccos)

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How wrapper is used

Machine-made verses premium cigars Machine-made cigars: -cuts per Kg very important (uses thinner leaves) -requires more uniform wrapper (less blemishes and even color) -improves efficiencies (more cuts per leaf and less cigar sorting) -several cigars cuts taken per leaf

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How wrapper is used (Cont.)

Machine-made verses premium cigars Machine-made cigars -wrapper cuts are made and place (Cont.) on bobbin roles or directly on the cigar -stricter leaf color sorting required for machine-made cigar -straight from machine to box

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Impact of Quality Comparison of quality and price

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Impact of Quality Comparison of quality and price

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How wrapper is used (Cont.)

Machine-made verses premium cigars Premium cigars: -normally uses upper stalk leaves -can use lower grades for cuts: (cigar rollers can cut around blemishes/holes) -only one cigar cut per side (two cuts per leaf) -can use less sorted tobacco: (cigars are manually sorted before boxing)

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Outline

• Cigar tobacco defined • Impact of quality • Common production practices • Challenges in crop protection and quality

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“Making the bunch”

Making a Hand-made Cigar 2017

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“Making the bunch” (cont.)

Making a Hand-made Cigar (cont.) 2017

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“Rolling the binder”

Making a Hand-made Cigar (cont.) 2017

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“Into the mold”

Making a Hand-made Cigar (cont.) 2017

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“In the press”

Making a Hand-made Cigar (cont.) 2017

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“Cutting the wrapper”

Making a Hand-made Cigar (cont.)

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“Rolling the wrapper”

Making a Hand-made Cigar (cont.) 2017

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“Rolling the wrapper” (cont.)

Making a Hand-made Cigar (cont.) 2017

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“Rolling the wrapper” (cont.)

Making a Hand-made Cigar (cont.) 2017

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“Quality control”

Making a Hand-made Cigar (cont.) 2017

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“Ready for Boxing”

Making a Hand-made Cigar (cont.) 2017

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The “perfect” field The “optimal” leaf The “suitable” blend

Creating the “perfect leaf” “Perfect leaf” for curing “Perfect leaf” cured

Cigarette tobacco

Cigar tobacco

Cigar/Cigarette Comparison 2017

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Outline

• Cigar tobacco defined • Impact of quality • Common production practices • Challenges in crop protection and quality • Summary

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Cigar/Cigarette Comparison (cont.)

Cigar Cigarette Worldwide Production: 120,000 tons (2%) 5,000,000 tons (98%)

Tobacco Processing: -fermentation, sorting, -threshing, drying, packing (2-10 months) packing (30 mins) Packing: -packing in various forms in -packed as threshed various sized bales/materials strips in uniformed at 15-18% moisture cartons at 12% Reducing sugars: -reducing sugars near 0% -reducing sugars 8-15% FCV, 30% Oriental

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Cigar/Cigarette Comparison (cont.)

Cigar Cigarette Manufacturing: -hand rolled 300/day/team of 2 -highly mechanized -machine made natural wrapper 16,000/minute 20-150/minute -machine made reconstitute wrapper 200-2,000 /minute Seed types: -12 + types -4 + types Wrapper: -natural leaf (9 types) -paper -reconstituted Binder: -natural leaf (many types) -no binder -reconstituted Sizes - various sizes and shapes -uniform

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In summary

Cigar tobacco production: - Pursuit of the “perfect” leaf - Tobacco must be kept blemish-free in the field to have an opportunity to be quality wrapper that the market demands - Predominate style of tobacco where individual leaves are graded, purchased, and used as whole leaves - Very little standardization (when compared to cigarettes)

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Thank you.

ACAC Meeting

19 January 2015

Chaing Mai - Thailand

Thank you.

CORESTA SSPT 2017 October 10, 2017

Kitzbühel – Austria

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