The
laws concerning smoking and tobacco are pretty different from the ones
in USA. Let us compare between the American and Canadian cigar shops:
Tobacco
duties and taxes significantly increased: As Canada has different tax
rates in every province, the US has different rates in every state. In
addition to the provincial taxes, Canada also imposes federal duties.
And as the tobacco passes through the supply chain from the manufacturer
to the consumer, the price for the cigar has drastically increased. If
you had gone to your local Brick and Mortar cigar shop, a decent cigar
would typically cost about $6 while the same cigar would cost you about
$20-25 in Canada. You can see how much more expensive it is.
Collection
at your local Brick and Mortar slowly reduces: These costly prices have
an effect not only on the consumers but also on the importers and
manufacturers. This results in them deciding not to bring in certain
cigars since it is not worth. Therefore this results in the consumers
having very limited selection. Therefore, the leading source of cigars
for Canadians comes from holidays or holidaying friends as they are the
best price. Another solution is to look for a cigar store that is situated in a duty free zone in your state.
Local
B&M stores have started vanishing: People and not buying from local
B&M stores as frequently as they used to. So B&M’s have started
losing money and started disappearing. Let us say that the prohibition
was lifted and the Cuban cigars are available in your local cigar stores,
would you back them? May be some people but not too many taking into
consideration what the prices might be. The Brick and Mortar would still
be suffering.
Going
to any kind social cigar event is rather tough in Canada, particular
during winter. Very many family members do not like the thought of
smoking indoors. Furthermore smoking inside with five additional friends
is even worse. Like in the USA where most Americans go to a local USA cigar store
and enjoy lighting up a cigar whilst enjoying HD television on a fine
leather chair, Canadians cannot do that. There is a 100% indoor smoking
prohibition in public places except in private residences. Moreover,
there is a limitation in Canada to smoke within a particular distance of
building entrances and exits.
Many
people would like to enjoy their cigar with a drink such as scotch or
cognac. In Canada it is really tough to get a liquor license and a local
Brick & Mortar store, to qualify, would be expected to be in
business as a restaurant or bar.
This takes away the appeal of spending an evening at a local cigar shop including an amazing selection of alcoholic drinks.
Due
to the strict rules on Tobacco, there is a scarcity of manufacturers of
local cigars. There are fewer boutique manufacturers because of the
combination of duties, taxes and regulations in Canada. And due to this,
you can imagine all the enjoyable events to vanish.
