Joseph Adduci, lead principal of Adduci Cigars, has signed a deal to acquire venerable cigar makers Royal Jamaica, whose cigars are currently made in the Dominican Republic. The deal has two components – firstly the acquisition of a factory and farm located in May Pen and secondly the rights to the brand.

Speaking with Caribbean Business Report from New Kingston on Wednesday, Adduci explained: “In 1935,James Frederick Gore began manufacturing Royal Jamaica premium cigars right here in Jamaica. Former British Prime Minister Winston Churchill had a cigar named after him. That cigar was made specifically by Royal Jamaica. Royal Jamaica was the only cigar served on the Concord aeroplane. Robert Gore was the last person in Jamaica to make Royal Jamaica cigars. However, back in 1990 it was sold to a Spanish company called Altadis, with the cigars manufactured in the Dominican Republic. The Gores manufactured Royal Jamaica for the local market in May Pen and we have now acquired a 100,000 square foot factory and 93 acres of tobacco farmland from Anthea Gore. We have also acquired the brand and in effect we are bringing Royal Jamaica back home to be branded and manufactured right here. We see this as a boost for Jamaican agriculture and hope to employ 3,000 people. It will primarily be an export business and a good earner of foreign exchange.”

Adduci sees tremendous potential for the cigar industry in Jamaica and has made significant investments to that end. He notes that in 1990, Jamaica exported 23.5 million cigars and was the number three producer in the world of handmade premium cigars. With the government at the time failing to renew the tax incentive and with the loss of two thousand jobs, the tobacco industry ran aground, resulting in the closure of the Cifuentes Y Cia factory on Washington Boulevard, Craven A moving production to Trinidad, and Royal Jamaica being produced in the Dominican Republic where labour costs were 70 per cent cheaper than Jamaica.

Adduci came to Jamaica fifteen years ago. He learned how to grow tobacco in Connecticut, in the United States. He began his tobacco venture in Jamaica back in 2005, with Adduci Tobacco Limited operating farmlands both in Clarendon and Westmoreland. The company now has a number of brands in its stable including Adduci Cigars, King Lion Jamaican Cigars, Goldeneye Cigars and Blackwell Fine Jamaica Rum Cigars.

“The plan now is to employ around 3,000 Jamaicans islandwide and revitalise the Jamaican cigar industry. Right now, Royal Jamaica is in 70 countries with trademarks with seventeen countries. We would like to bring Royal Jamaica cigars to 200 countries. We will be rolling out with the original blend and manufacturing right here in Jamaica by Jamaicans for the global market. We will still have Adduci Cigars as a super premium product. Royal Jamaica is iconic and is in more countries than Appleton Rum and Red Stripe,” said Adduci.

The champion of the Jamaican cigar industry is now moving to centralise operations in May Pen. The renowned auditor BDO has valued Royal Jamaica at around US$60 million (pre-tax). A new company has been formed called Adduci Agriculture Manufacturing Export Limited (AME) with an impressive board consisting of Adduci as lead principal, legal luminary and a former senior partner at Dunn Cox Christopher Bovell as chairman, former Minister of Commerce and Industry Douglas Vaz as vice-chairman, Paul Collister founder, of Orbus Technologies, who is also the Company Secretary and Mike Johnson. The company is now in the process of seeking a private placement before listing on the Jamaica Stock Exchange. It will be one of the few agricultural-based companies to seek a listing in recent years. Adduci AME will serve as a holding company for all the entities, including the farm and factory together with all the brands now under the stable.

“The idea is to grow tobacco in every parish if the Ministry of Agriculture can make the land available. We can bring our expertise to create a viable industry for agriculture. The aim is for us to produce around 20 million cigars a year and we will be bringing in a 33-year-old American professional to manage the factory. He has experience in producing 20 million cigars a year. You have to remember that eleven years ago the top two cigar brands in the United States were Jamaican, namely Royal Jamaica and Macanudo Cigars. Think about it. If Carerras could net US$45 million last year, just think what we can do when we go global. Jamaica has so much potential,” said Adduci.