Cigar makers shuts down its plant

Published on July 8, 2009 5:01 AM

Florida will fell short of one of its iconic cigar plants in later this summer when Hav-A-Tampa closes its factory, which has been working since 1902 and fires almost 500 employees.  

The company related the major part of its sales drop to enormous cigarettes tax increase, implemented to fund the State Children's Health Insurance Program, a nationwide health program, giving medical insurance to children from low-income families. The latter program is partly funded by the revenues from the tobacco tax hike that was increased in April.

Atladis spokesman said that it has not been clear exactly how much sales dropped but the reports showed that it was a huge fall.

James Fox, vice chairman of American Cigar Association stated that they have warned the government about inevitable drop in cigar consumption in case of tax increases and all the related consequences, but the authorities remained deaf to their claims.

With Hav-A-Tampa shutting the business in Tampa, the sole considerable cigar plant left in the Florida will be J.C. Newman that still produces up to 40,000 cigars each day for its brands Black Jack, Rigoletto, and several others, confirmed the company president Bobby Newman.

Newman said that his company moved to Tampa from Denver in early 50’, when Tampa was home to 10 major cigar plants.  

"It would be a rather grievous day for us as well, since we are the last survivors," Newman added.