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The tax-induced consolidation of the global cigar industry has found a participant in Cusano Cigars of Bradenton.
It was bound to happen, says Norman Sharp, president of the Cigar Association of America. Sharp and other experts in the tobacco industry believe that these deals come from the bureaucratic pressure of taxes and bans on tobacco and smoking. They predict more mergers and acquisitions in the industry are forthcoming.
The Oettinger Davidoff Group bought Cusano Cigars. Oettinger went through with the sale to tap revenue potential in the American market, which is the largest for premium cigars. This is the second American company it has acquired within the last month.
The Chiusano family sold to the Switzerland-based tobacco firm after years of a business relationship that involved Cusano's long filled cigars. Michael Chiusano said Oettinger would benefit from the adaptive nature of Cusano Cigars and Cusano would be aided by more product development opportunities and better product consistency.
Both of the Chiusano brothers will remain at the company in their respective leadership positions.
Says Michael Chiusano: “Both [Cusano] and Davidoff will grow stronger. We will be more responsive to customer needs, more flexible and able to acclimate to changing markets.”
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