How Much Will FDA Regulations Cost the Premium Cigar Industry?
According to the U.S. Food & Drug Administration’s (FDA) own internal data—at least $115.6 million over the next 20 years and potentially as much as $300 million.
Last month, the FDA announced plans to regulate various tobacco products it currently does not oversee including cigars, e-cigarettes, pipes and hookah tobacco. As the agency laid out its plan, it also requested public feedback over whether or not it should specifically exempt premium cigars. 
As part of financial estimations required to be calculated because of the new law the FDA estimated the costs of Option 1, regulation all cigars, and Option 2, regulating all but “premium cigars.”
The $115.6 million figure could balloon to over $300 million in the next two decades based on the agency’s own estimations, yet the economic impact is almost certainly significantly greater. As many as half the premium cigars currently on the market could be removed according to the agency itself, a much greater impact than $300 million over 20 years.
Earlier today we launched halfwheel.com/fda, a micro-site dedicated to the proposed deeming regulations that examines issues like this and more.
Charlie Minato
I am an editor and co-founder of halfwheel.com/Rueda Media, LLC. I previously co-founded and published TheCigarFeed, one of the two predecessors of halfwheel. I have written about the cigar industry for more than a decade, covering everything from product launches to regulation to M&A. In addition, I handle a lot of the behind-the-scenes stuff here at halfwheel. I enjoy playing tennis, watching boxing, falling asleep to the Le Mans 24, wearing sweatshirts year-round and eating gyros. echte liebe.
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