On the morning of March 31, 2025, a fire broke out at Tabacalera AJ Fernandez Cigars de Nicaragua S.A., one of the most prominent factories in the premium cigar world. The blaze, which began around 8:00 a.m. local time in Estelí, was successfully extinguished by early afternoon, but not before it caused substantial damage—particularly to finished inventory housed in the factory’s packaging department.
While the exact cause of the fire remains under investigation, multiple sources close to the situation have confirmed that the incident primarily affected the area where cigars are banded, cellophaned, and boxed for shipment. Although no injuries were reported, and all 1,500 individuals on-site—including 70 children from the factory’s kindergarten—were evacuated safely, the material losses are expected to be significant. Finished cigars, prepared for both domestic distribution and international export, were reportedly destroyed in large quantities.
The Estelí facility is a key production site for a wide portfolio of brands, serving not only A.J. Fernandez’s own creations—such as New World, Enclave, and San Lotano—but also a number of prominent lines produced for third-party partners. These include brands for Altadis U.S.A. (Aging Room, Montecristo, and Romeo y Julieta), Scandinavian Tobacco Group (Diesel, Man O’ War), Foundation Cigar Co., Southern Draw, and Artesano del Tobacco.
According to reporting from Cigar Aficionado, Rafael Nodal, vice president of product capability for Tabacalera USA, and a longtime collaborator and friend to A.J. Fernandez, the majority of the damage was contained to the packaging department. Tobacco inventories—particularly raw leaf and aging stock—appear to have been spared, as did the company’s secondary facility in Ocotal, which continues normal operations.
With A.J. Fernandez being a major partner to many in the cigar industry, it is no surprise that the news of the fire had many voicing their support for Fernandez and his company’s recovery from this devastating setback:
“Our production partner, AJ Fernandez, recently experienced a fire at their facility in Estelí, Nicaragua. We are incredibly grateful to report that everyone is safe and sound. The fire did unfortunately impact packaging materials and finished, aging cigar inventory. As a result, we will experience delays and limited availability of certain products in the near future. We ask for your patience and support during this time as we work closely with our partners to manage the situation,” Foundation Cigars communicated in a message on social media.
“We are blessed to report that no loss of life or major injuries have been reported. The damage was massive and the loss of tens of millions of dollars in cigars, packaging materials, and the factory itself has been reported. There is every reason to believe that the SDC [Southern Draw Cigars] brand cigars and packaging materials were part of this loss. We ask that you join us as we pray for the AJF family and community as they rebuild and return to business in the coming months,” shared Robert and Sharon Holt of Southern Draw Cigars.
In a message shared via the company’s social media channels, the AJ Fernandez team offered a heartfelt note of gratitude to the cigar community:
“From the bottom of our hearts, thank you to everyone who has reached out, prayed for us, and stood by our side during this incredibly difficult time. Your love and support mean more than words can express. We are beyond grateful for the strength of our community, our team, and all those who have shown up for us. Above all, we are thankful that everyone is safe. In moments like these, we’re reminded of the power of unity and we feel it now more than ever. We will move forward—united, resilient and more committed than ever to what we stand for.”
“On behalf of all of us at Espinosa Cigars, we were heartbroken about today’s events. We’ve shared a long history of hard work, trust, and success together, and it pains us to see you face this challenge. Please know that we’re standing with you, not just as long-time collaborators, but as friends. You’ve always shown strength in the face of adversity, and we have no doubt you’ll rise again,” Espinosa Premium Cigars posted in a statement online.
Despite the setback, there is optimism that recovery efforts will proceed swiftly, fueled by the same passion and resilience that have long defined the A.J. Fernandez brand. Further updates are expected as damage assessments continue.