The laws concerning smoking and tobacco are pretty different from the ones in USA. Let us compare between the American and Canadian cigar shops:
Tobacco duties and taxes significantly increased: As Canada has different tax rates in every province, the US has different rates in every state. In addition to the provincial taxes, Canada also imposes federal duties. And as the tobacco passes through the supply chain from the manufacturer to the consumer, the price for the cigar has drastically increased. If you had gone to your local Brick and Mortar cigar shop, a decent cigar would typically cost about $6 while the same cigar would cost you about $20-25 in Canada. You can see how much more expensive it is.
Collection at your local Brick and Mortar slowly reduces: These costly prices have an effect not only on the consumers but also on the importers and manufacturers. This results in them deciding not to bring in certain cigars since it is not worth. Therefore this results in the consumers having very limited selection. Therefore, the leading source of cigars for Canadians comes from holidays or holidaying friends as they are the best price. Another solution is to look for a cigar store that is situated in a duty free zone in your state.
Local B&M stores have started vanishing: People and not buying from local B&M stores as frequently as they used to. So B&M’s have started losing money and started disappearing. Let us say that the prohibition was lifted and the Cuban cigars are available in your local cigar stores, would you back them? May be some people but not too many taking into consideration what the prices might be. The Brick and Mortar would still be suffering.
Going to any kind social cigar event is rather tough in Canada, particular during winter. Very many family members do not like the thought of smoking indoors. Furthermore smoking inside with five additional friends is even worse. Like in the USA where most Americans go to a local USA cigar store and enjoy lighting up a cigar whilst enjoying HD television on a fine leather chair, Canadians cannot do that. There is a 100% indoor smoking prohibition in public places except in private residences. Moreover, there is a limitation in Canada to smoke within a particular distance of building entrances and exits.
Many people would like to enjoy their cigar with a drink such as scotch or cognac. In Canada it is really tough to get a liquor license and a local Brick & Mortar store, to qualify, would be expected to be in business as a restaurant or bar.
This takes away the appeal of spending an evening at a local cigar shop including an amazing selection of alcoholic drinks.
Due to the strict rules on Tobacco, there is a scarcity of manufacturers of local cigars. There are fewer boutique manufacturers because of the combination of duties, taxes and regulations in Canada. And due to this, you can imagine all the enjoyable events to vanish.