Tobacconists have warned that a new plain-packaging regime could wipe out Britain’s specialist cigar industry, forcing family businesses to close and potentially rendering millions of pounds of vintage stock worthless.
Ministers are considering extending cigarette-style plain packaging and graphic health warnings to cigars, a move that traders say would dismantle an industry built around craftsmanship, heritage and distinctive branding.
The proposals would strip traditional handmade cigar boxes and bands of centuries-old artwork and branding, affecting an estimated 120 specialist businesses, many of them small, family-owned firms.
The campaign against the plans is being led by James J Fox, the 140-year-old London cigar shop whose customers have included Sir Winston Churchill.
Daniel Freeman, its director, told The Telegraph: “From the day it comes in, we will become unprofitable.”
He said the cost of repackaging imported cigars would make premium products commercially unviable, while driving customers to buy abroad.
“Plain packaging will instantly kill the industry,” he said.
Jemma Freeman, chairwoman of Hunters and Frankau, the UK’s sole distributor for Cuba’s Habanos SA cigar brands, was even more stark.
She said the measures would “end this business in between three to five years”.
“It will be a total wipe-out,” she added.
The threat extends beyond retailers. Edie Sahakian, whose father fled Iran during the revolution before establishing Davidoff of London in 1980, said the proposals could destroy the family business before it could be passed to the next generation.
Mr Sahakian said: “If this plays out, there will be no business to pass on. It’s the end, it’s game over in the UK.”
He said the regulations would also force the company to repackage millions of pounds’ worth of rare vintage cigars held in storage, potentially making them “worthless”.
Laurence Davis, owner of Sautter Cigars, warned that stripping legitimate products of their distinctive packaging could create a bonanza for counterfeiters.
Labour was “giving the world of cigar forgery the opportunity to just go wild”, he said.
The Government insists no final decision has been taken.
A Department of Health and Social Care spokesman said: “We are currently consulting on plain packaging requirements for all tobacco products, as part of our effort to tackle a habit that remains the single leading causes of preventable death, disability, and ill health in this country.”
“All stakeholders, including specialist tobacconists, have been encouraged to contribute to this consultation, and we will consider their responses carefully before any final decisions are taken.”
The consultation follows powers granted under the Tobacco and Vapes Bill, originally introduced by Rishi Sunak.
The legislation received Royal Assent in April and prohibits anyone born after 2009 from legally purchasing tobacco.
For Britain’s cigar merchants, however, the latest proposal threatens to go beyond restricting future consumption and into the destruction of an established specialist market.
Mr Freeman said Sir Winston Churchill would be “turning in his grave” at the proposals.