I like to save them and when I smoke a special occasion cigar I'll tear the cedar into strips and use it to light my cigar. Seems to give a slow cool light that makes for better flavor for the first few puffs.
+3. The first time I went to the Blarney Stone Cigar bar in Myrtle Beach, the bartendress lit my cigar with cedar strips. I've done it a couple of times since then, and I too like the smell of it.
I like to spread them out or smash them flat and leave them in the herfador. Makes that initial whiff even better when I open it up for a smoke.
My father in law got me this little cigar carying case (I guess that'w what you'd call it - it's not really a herfador) - it's like a nylon type material with a velco closure. Not too practical, but i use it occasionally and do the same thing as sniper - i line the bottom of it with flattened cedar sleeves for aroma and a vain hope that they somehow help it hold a little humidity.
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Oh and when I am travelling its been known to have cigars in it too.