News: Espinosa & Ortega Split Up EO Brands


Erik Espinosa and Eddie Ortega are back in control of the 601, Cubao, Murcielago and more—but EO Brands is officially done. Two weeks after Rocky Patel informed retailers the company would no longer be handling distribution of the EO marks, United Tobacco/EO Brands has been bought back by the duo, divided and dissolved.

Espinosa and Ortega, both of whom have announced new companies in 2012, bought back the 50% stake Rocky Patel took in the company two years ago and then late last week, sat down to divide the brands. The two started EO Brands in 2003 and through distribution and manufacturing agreements have been tied to Miami Cigar & Company, Rocky Patel and My Father Cigars.

As part of the agreement, Espinosa will get the rights to the 601, Murcielago and Mi Barrio brands—the latter of which has spent the last few years as an exclusive to Famous Smoke Shop.

Ortega will get Cubao, as well REO and Vibe—two dormant marks introduced in 2005. Last year, changes in Cubao’s distribution were announced. Ortega admitted for the last few months the brand’s status has been largely in flux, but told halfwheel he wasn’t concerned.

“I have a ton of retailers asking me about Cubao.”

He said he would evaluate the brand and its distribution, but reiterated that the brand would be available for those who wanted it through his new Ortega Cigar Company. He also hinted that REO and Vibe might be back at some later date. Previously, Ortega indicated he expects nothing new form his company at IPCPR.

Espinosa told halfwheel he is now in complete control of the 601, Murcielago and Mi Barrio marks and they will be sold through his new Espinosa Premium Cigars, which is expecting to ship its first orders nationally in the coming weeks.

In seperate calls, both Espinosa and Ortega confirmed that EO Brands as a mark is retired.

 

8 comments
maxx
maxx like.author.displayName 1 Like

Always liked the Cubao and its price point.

dancrago
dancrago

Definitely wouldn't characterize this as EO "tanking." There are always details that aren't apparent.

CigarGalactus2
CigarGalactus2

Amazing how quickly EO tanked. 

maxx
maxx

@CigarGalactus2 The partners split and the company followed. No surprise.

AdamKa
AdamKa

This is a sign for all: don't get in bed with Rocky.  His distribution of EO was a f-ing disaster, from the re-branding, to the backtracking on branding, to the marketing.  What a clown.  

maxx
maxx

@AdamKa An extremely successful clown.

DavefromPhilly
DavefromPhilly

are 601, Cubao, Murcielago still being produced at My Father?

JasonHD
JasonHD

Thanks very much for shedding some light on this.

 

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  1. [...] been three months since Erik Espinosa took control of the 601 and Murcielago brands after the dissolution of EO Brands, and he’s now confirmed to halfwheel that the popular 601 and Murcielago brands will now be [...]