Interview with Tim Ozgener, President of CAO International

By Bob Tate

We’ve been intrigued with rumors circulating around the pipe community that CAO might become the new distributor of Dunhill pipe tobaccos in the USA. There have been comments that CAO would increase its presence in the pipe tobacco business in 2010, rumors of new tobaccos, possibly bringing back the old CAO tobaccos, CAO meerschaum pipes and possible Dunhill distribution.

We had a great conversation with Tim Ozenger, President of CAO International (he’s a very friendly and accommodating chap). We talked about the aforementioned rumors and a few other things. Find out which rumors are true and which are not. So without further ado, here is our conversation with Tim:

PipesMagazine (PM): Tim, at the beginning of 2009, there were a lot of rumors that CAO was getting out of the tobacco pipe industry. Is it true that CAO made the decision to no longer be involved in the pipe industry or was it more related to Scandinavian Tobacco Group merging with CAO and there being a switch from Dan Tobacco to Scandinavian Tobacco Group?

Tim Ozgener: Well, Scandinavian Tobacco Group acquired CAO and in the acquisition they stated that they were in the cigar business and were not interested in pipes, although they are the largest producer of pipe tobacco in the world. So pipe smoking is still of interest to them, but they wanted us to focus more on cigars and pipe tobacco in the future instead of pipes. My father retired from the business, but still has some pretty tight relationships with some of the more important carvers in Turkey and he continues to purchase pipes from these carvers in Turkey. It was just made clear that that was not a part of CAO and more of, a kind of, personal decision. So my father has continued to receive pipes from these carvers. Read the rest of this entry »

Bill Introduced to Further Raise Federal Taxes on Pipe Tobacco

By Bob Tate

Hold onto your pipes people, here it is.
On January 13, 2010, Rep. Steve Cohen (D-TN) and co-sponsor Rep. Lloyd Doggett (D-TX) introduced bill H.R. 4439 to congress to raise the federal pipe tobacco tax from $2.8311US per pound to $24.78US per pound and “To amend the Internal Revenue Code of 1986 to impose the same rate of tax on pipe tobacco as is imposed on roll-your-own tobacco.”

At the time of this article, this has not been reported by any news agency. This seems to be the way that all anti-tobacco legislation has been happening as of late. “Do not report on it until is has already passed” and I am sick of them sneaking their laws in and not letting the public know until after it is passed.

If this bill passes, the average increase to your favorite blends will be about:
$2.43US per 50gr
$2.74US per 2oz
$4.86US per 100gr
$10.98US per 8oz
$21.95US per 16oz
$24.15US per 500gr
These prices would be added onto the price you are currently paying for those amounts of pipe tobacco. So with the average price of 100gr tin McClelland Frog Morton being about $13.20US, the new price would be $18.06US! That is outrageous! Read the rest of this entry »