-13 - 



Consumer Expenditures 



Consumers spent an estimated $645 million for cigars in i960, al 

 fourth more than 10 years earlier and nearly \\ times more than 20 ye- 

 earlier. The i960 retail expenditure for cigars represented an averag 

 price of about 9 cents a cigar. The average retail price of cig 

 relatively stable over the past 10 years or so, varying within 3 percen 

 Technological advances in production processes which reduced costs per uj 

 output have aided manufacturers to offer cigars at prices which held the over- 

 all price average steady for some years. More than three-fifths of all 

 consumed in i960 sold at 8 cents or less, a third sold at 8.1 to 15 cei t 

 a little more than 6 percent sold at prices exceeding 15 cents apiece. 



Expenditures in i960 for cigars accounted for about 8^- percent of re- 

 tail expenditures for all tobacco products and for about 0.2 percent tal 

 personal consumption expenditures . 



Federal and State Tax Revenues 



Federal tax revenues from cigars amounted to $50 million in i960. In 

 addition, about 17 States also taxed cigars, although two — Michigan and N 

 York — have since repealed their cigar tax. State tax revenues from cigars 

 i960 probably totaled over $20 million, but would be less than this in 196I 

 since cigar taxes have not been in effect in Michigan and New York during the 

 last half of this year. 



KINDS OF CIGAR TOBACCO 



Cigar tobacco is classified in three broad groups, depending on its 

 principal use — filler, binder, and wrapper. The filler of a cigar is the 

 and consists either of "long" filler (pieces of leaves folded together 1« 

 wise and running the entire length of the cigar) or "short" filler 

 smaller pieces of leaves). The trend in recent years has been sharpl; rds 

 short filler. However, higher-priced cigars usually consist of long filler . 

 Around the filler is the binder , which is wound around the filler to hcl 

 together and shape it in a "bunch ." A wrapper is wound spirally art 

 "bunch", and forms the outside covering, with special attention given tc a- 

 chieving an attractive appearance of the finished product. 



Although the exact proportions of filler, binder, and wrapper on 

 vary according to size, shape and weight of the product, the filler 

 the major part of a cigar, accounting for roughly 80 percen: 

 weight. The binder accounts for around 15 percent or so, and the •• 

 remaining approximately 5 percent* 



The filler — core of the cigar — predominates roma, and the 

 bicular kind or blends will largely determine bh< Lv 

 finished product. Filler types usually are coarser textur . 

 than other types; the principal 

 and ivod burr. (■■■■. plete and tion). BJ 



