Ortega Appears to be Elected in Nicaragua -- Cigar Industry Reacts

David Savona
Posted: November 7, 2006

Daniel Ortega, the Sandinista who nationalized Nicaraguan businesses during the 1980s and whose previous Nicaraguan presidency was roiled by a U.S. embargo and civil war, was being hailed as the likely victor in Sunday's Nicaraguan presidential election.

A probable second Ortega presidency concerns the nation's cigarmakers. Nicaragua is the third largest exporter of premium cigars to the American market, accounting for approximately 16 percent of the handmade cigars smoked every year by Americans. Its reach as a tobacco producer is far greater. As the palate of cigar consumers increasingly yearns for stronger, richer tobaccos, the full-flavored leaf grown in Nicaragua is becoming far more common in blends produced around the world. An interruption in that supply would have a major impact on the cigar market.

"The operative word is we're all very concerned and very worried about the history of Ortega and the party," said Charlie Toraño, president of Toraño Cigars, which makes some of its cigars in Nicaragua. "The truth is they're saying all the right things, but at this point it's a wait-and-see approach."

To read much more on this story, with insight from many of Nicaragua's cigarmakers, see today's Cigar Insider.

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