Big Merger in Cigars

[RX2010]

http://www.cigaraficionado.com/Cigar/CA_Features/CA_Feature_Basic_Template/0,2344,1751,00.html

CAO and a euro company I'm not familiar with

[Electric Sheep]

Damn, I was just about to post this! LOL!

[cvm4]

I'm surprised they sold out. The money must've been good.

[RX2010]

Ha, take that wooly one!

[caudio51]

It sounds like they did it so they can use this companies distribution network to expand CAO

[RX2010]

yeah, it would appear for both companies to be an expansion-minded plan

CAO to the world, and the other guy to the States

[Electric Sheep]

I understand that it makes business sense, but it's still shocking to see it happen.

Just as long as they don't every jack up the Brazilia, I'm okay with it. :grin:

[caudio51]

I would expect them to go up slightly, more paychecks to cut

[cvm4]

The odd thing is that they were bought to expand into another market sector (premium cigars). I guess it's just cheaper these days to buy another company instead of doing it yourself.

[caudio51]

Definitely cheaper. The infrastructure is set up, that's the part that costs the most

[Electric Sheep]

Plus, if you buy an established business, you get a company that's already past the startup stage...you know, the period where MOST business fail.

[caudio51]

Duane knows what he is talking about

[CWS]

Opens the european market. Gives them more clout with a player behind them. The combined strength of the twocompanies could present a power house in the industry to compete with the bigger house. I predict more acquisitions. Grow or die.

[cfheater]

I believe that when a company is bought out their cigars change. It happened with La Gloria Cubana and it will happen to CAO. I think that large companies can't focus on quality but quantity. We should check back on this in 6 months then a year.

[Headbanger]

This is pretty decent size news for sure.

[caudio51]

I believe that when a company is bought out their cigars change. It happened with La Gloria Cubana and it will happen to CAO. I think that large companies can't focus on quality but quantity. We should check back on this in 6 months then a year.

What was the background with La Gloria?

[jrohrer]

I believe that when a company is bought out their cigars change. It happened with La Gloria Cubana and it will happen to CAO. I think that large companies can't focus on quality but quantity. We should check back on this in 6 months then a year.

I don't want to heat that...some of the CAO line are my 'go-to' cigars!:sadpace:

[cfheater]

In a nutshell, back in the early 90's about the time CigarAficionado magazine came out they rated LGC cigars very high. At that time they were a small production and were hard to come by. Anyways you couldn't find a LGC anywhere and the wait was for years. They eventually were sold to one of the large companies production is very high and their cigars are now nothing close to what they were. I believe the same will happen to CAO). I could be wrong but I think when the larger companbies start producing large amounts of cigars the blend changes a bit and their small productioin signature taste also goes.

[CWS]

LGC had a small factory with limited production similar to tatuaje today. They still put out good cigars, particularly the rservas but with volume comes cutting some corners/ CAO is already a massive cigar machine and marketing group. They dont roll their own but have others do it. The original CAO cameroons were incredible but have gone through two or three different factories to the group that rolls them today. Will CAO diminish? Time will tell but I doubt it. They have already given up some quality for quantity and still create a damn fine cigar.

[cvm4]

I agree with Chuck. I don't see how you guys call CAO a small cigar company. They're pretty big and readily available at any cigar shop.

[caudio51]

They're not small but they don't even make their own cigars, they have someone else do it. More of a marketing company IMO

[cvm4]

Right up there with Fuente

[Mickeyray5]

CAO makes some of my favorites. What bothers me is to see a family run business sell out to a large company. There are several premium cigar companies that are family run and I think the family involvement can make a difference. When the family is no longer there to protect their name, then profit and margin start to take precedence. I've seen it happen with other products, I hope it doesn't happen with cigars.

[CWS]

CAO makes some of my favorites. What bothers me is to see a family run business sell out to a large company. There are several premium cigar companies that are family run and I think the family involvement can make a difference. When the family is no longer there to protect their name, then profit and margin start to take precedence. I've seen it happen with other products, I hope it doesn't happen with cigars.

Knowing the management of CAO I dont think it will. Cano has too much invested in it. By the way Welcome. Stop by the intro thread and tell us about yourself.

[Wasch_24]

http://www.cigaraficionado.com/Cigar/CA_Features/CA_Feature_Basic_Template/0,2344,1751,00.html

CAO and a euro company I'm not familiar withThis smells like the fulfillment of the family dream. Get big and cash in before Dad dies so they can all reap the benefits together.

From my POV CAO did not need to be purchased by anyone to achieve anything.

Wintermans likely gave them an offer they just could not refuse and they decided to cash in on their success.

[fredneck]

This smells like the fulfillment of the family dream. Get big and cash in before Dad dies so they can all reap the benefits together.

From my POV CAO did not need to be purchased by anyone to achieve anything.

Wintermans likely gave them an offer they just could not refuse and they decided to cash in on their success.:yes: I couldn't agree more.

As others have already said, they were more about marketing than manufacturing.

[Boppa-Wasch]

$$$$ Talks!

[Cigar_Jack]

I believe Torano makes a large portion of the CAO cigars. I'll be watching a waiting to see what happens. The CAO Mx2 was one of my first cigars I tried when I started to get serious about smoking.

I've seen mergers in others businesses like this. Both companies from a manufacturing point probably won't change. What they both really need is each others distribution networks it sounds like.

[MichiganM]

This smells like the fulfillment of the family dream. Get big and cash in before Dad dies so they can all reap the benefits together.

From my POV CAO did not need to be purchased by anyone to achieve anything.

Wintermans likely gave them an offer they just could not refuse and they decided to cash in on their success.

:applause:

Amen brother. Anytime I've mentioned CAO I've always said I love to hate them. They are just a marketing machine, which they happen to be particularly good at. Tim is very hip, as indicated by his previous profession as a stand up comic. I just despise a company that has all their product made by someone else. I've never liked CAO and this will no doubt cement my image of them.

[Cigar_Jack]

They may not own the factory that rolls the cigars but they still decide on the tobacco that goes into the cigars to get the blend I want. Why spend all the money building a factory when you can pay someone else to do it and focus where YOUR talents are? Even if they are a Marketing company they make some damn fine cigars.

[knife]

I think the CAO marketed by Wintermans will be very familiar to the CAO we see today. However, when Tim is gone (what is it, five years?), all bets are off.