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.