CWNews
Joya de Nicaragua and S.A.G. Imports Split
Los Angeles, February 13 -
CigarCyclopedia is reporting, today, that
the maker of the hot-selling Joya de
Nicaragua cigar line has split with its long-time U.S. distributors,
S.A.G. Imports of Miami and will end its agreement with them on April
25.
The Nicaraguan group, formally known as Tabacos Puros de Nicaragua (TPN) reportedly wanted more aggressive marketing from S.A.G., which is the U.S. distribution arm of Manuel Quesada's MATASA Factory in Santiago, Dominican Republic.
TPN's representative in the United States, Norman Luger, said in a statement "I can confirm that Joya De Nicaragua and its related brands will no longer be distributed by SAG Imports. We are currently restructuring our distribution network and will provide you with further information when we finalize our plans. May I add our departure from SAG Imports does not reflect negatively, nor detract from the personal and professional relationship we have had with SAG Imports."
According to a source with knowledge of the situation, TPN had interest in becoming a partner with S.A.G. and perhaps buying into ownership of the distribution company. However, the talks foundered and TPN informed S.A.G. in a meeting on January 25 in Miami that it was giving its 90-day notice to end its distribution agreement.
S.A.G.'s sales representatives have been notified that the distribution agreement will formally end on April 25.
The Joya de Nicaragua line consists of four blends at present: the original Joya de Nicaragua, Joya de Nicaragua Antano 1970, Joya de Nicaragua Celebracion and the recently-introduced Joya de Nicaragua Serie C. For S.A.G., the Antano 1970 line was by far the best seller, followed by the Celebracion, then the original blend and finally the Serie C.
The Joya de Nicaragua line was a substantial seller for S.A.G. and its loss will create a hole that could be filled by the stronger promotion of other brands, or the introduction of a new brand or perhaps an alliance with a new partner. S.A.G.'s best known brand is Fonseca and its portfolio also includes Cubita, La Primera, Ricos Dominicanos, Roller's Choice and it distributes the relatively new Augusto Reyes line, also made in the Dominican Republic.
TPN is now looking for a new distribution arrangement and one observer felt that whoever ended up selling the brand in the U.S. "will probably be someone who has their own sales force." S.A.G. sells its brands nationally through non-staff sales representatives, which have been quite effective for it, although our observer noted that "some people see it as a weak link."
It's the latest twist in the wild Joya de Nicaragua story, which started when the brand was created in the 1960s to provide an alternative to the no-longer-available cigars from Cuba, thanks to the American trade embargo. The brand was trademarked in the U.S. in 1971 and sales reportedly reached nine million units by 1976. However, it - along with the entire Nicaraguan economy - was decimated in 1979 with the beginning of the Sandanista Revolution; the Nicaragua Cigar Co. name, trademarks, fields and factories were nationalized and the same kind of trademark issues raised in the Cuban nationalization of the cigar industry came up immediately.
The brand remained off the U.S. market for more than a decade and finally re-appeared with support from California-based distributor Hollco-Rohr in 1994. That company was acquired by Consolidated Cigar Corporation, which later merged into Altadis, S.A. and eventually became Altadis U.S.A. However, the trademark rights for Joya de Nicaragua were finally purchased by TPN in 2000 and a distribution agreement with S.A.G. followed shortly thereafter. Now, there will be a new chapter for Joya in the U.S., as well as for S.A.G.
The Nicaraguan group, formally known as Tabacos Puros de Nicaragua (TPN) reportedly wanted more aggressive marketing from S.A.G., which is the U.S. distribution arm of Manuel Quesada's MATASA Factory in Santiago, Dominican Republic.
TPN's representative in the United States, Norman Luger, said in a statement "I can confirm that Joya De Nicaragua and its related brands will no longer be distributed by SAG Imports. We are currently restructuring our distribution network and will provide you with further information when we finalize our plans. May I add our departure from SAG Imports does not reflect negatively, nor detract from the personal and professional relationship we have had with SAG Imports."
According to a source with knowledge of the situation, TPN had interest in becoming a partner with S.A.G. and perhaps buying into ownership of the distribution company. However, the talks foundered and TPN informed S.A.G. in a meeting on January 25 in Miami that it was giving its 90-day notice to end its distribution agreement.
S.A.G.'s sales representatives have been notified that the distribution agreement will formally end on April 25.
The Joya de Nicaragua line consists of four blends at present: the original Joya de Nicaragua, Joya de Nicaragua Antano 1970, Joya de Nicaragua Celebracion and the recently-introduced Joya de Nicaragua Serie C. For S.A.G., the Antano 1970 line was by far the best seller, followed by the Celebracion, then the original blend and finally the Serie C.
The Joya de Nicaragua line was a substantial seller for S.A.G. and its loss will create a hole that could be filled by the stronger promotion of other brands, or the introduction of a new brand or perhaps an alliance with a new partner. S.A.G.'s best known brand is Fonseca and its portfolio also includes Cubita, La Primera, Ricos Dominicanos, Roller's Choice and it distributes the relatively new Augusto Reyes line, also made in the Dominican Republic.
TPN is now looking for a new distribution arrangement and one observer felt that whoever ended up selling the brand in the U.S. "will probably be someone who has their own sales force." S.A.G. sells its brands nationally through non-staff sales representatives, which have been quite effective for it, although our observer noted that "some people see it as a weak link."
It's the latest twist in the wild Joya de Nicaragua story, which started when the brand was created in the 1960s to provide an alternative to the no-longer-available cigars from Cuba, thanks to the American trade embargo. The brand was trademarked in the U.S. in 1971 and sales reportedly reached nine million units by 1976. However, it - along with the entire Nicaraguan economy - was decimated in 1979 with the beginning of the Sandanista Revolution; the Nicaragua Cigar Co. name, trademarks, fields and factories were nationalized and the same kind of trademark issues raised in the Cuban nationalization of the cigar industry came up immediately.
The brand remained off the U.S. market for more than a decade and finally re-appeared with support from California-based distributor Hollco-Rohr in 1994. That company was acquired by Consolidated Cigar Corporation, which later merged into Altadis, S.A. and eventually became Altadis U.S.A. However, the trademark rights for Joya de Nicaragua were finally purchased by TPN in 2000 and a distribution agreement with S.A.G. followed shortly thereafter. Now, there will be a new chapter for Joya in the U.S., as well as for S.A.G.