Cuba

Eddie Ortega: End to Cuban Ban Won't Matter for Brands

Filed under: Cigars

The effects of an end to the Cuban embargo are the subject of endless speculation in the cigar world. From smokers to company execs, it seems like everyone has an opinion on how much inventory would be available, product quality as Cuban factories rush to meet demand and how willing fans of non-Cuban brands would be to part with the sticks they have spent years enjoying.

One issue, the impact on brand ownership, doesn't get as much air time in cigar shop conversations, but it does come up – especially within the business. Eddie Ortega, the man behind the 601 line, among others, writes on his blog, "In recent years, the registered trademark owners in the USA of most Cuban brands have either been acquired or have merged with European companies who have worldwide distribution rights of most of the Cuban brands." Quite simply, the need to tangle over ownership rights may be settled already, because of European interaction with Cuba.

Gallery: Eddie Ortega at Pepin Garcia's Farm

Pepin Garcia and Eddie Ortega Viewing Tobacco Leaves

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Tags: cigar, cigars, cuba, cuban, cuban cigar, cuban cigar ban, cuban cigar embargo, cuban cigars, cubans

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Cuban Cigar Festival Punctuated with Million Dollar Humidor Auction

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars, Auctions

The annual Habanos festival ended Friday with a million-dollar cymbal crash. The week-long event attracted cigar merchants, smokers and collectors from around the world to select, sample and savor ... all leading up to purchases, of course. The main attraction was an auction of ornate cedar and mahogany humidors packed with hecho a mano cigars, ultimately fetching $1.09 million. Hundreds may have attended, but only a small fraction walked away with that level of satisfaction.

The celebration came on the heels of an announcement by Habanos S.A. that its revenue only reached $360 million last year, an 8 percent decline from 2008. The new Romeo y Julieta that was unveiled at the event, designed to appeal to women, is ostensibly a direct response to two consecutive years of revenue declines. Since women comprise only 5 percent to 10 percent of Habanos' customers, the company is hoping that there's room for growth. The company is also relying on an economic recovery in Spain, which is its largest market.

Despite the new "ladies' line," the focus in Cuba last week was on the auction. The top humidor to move contained the new Cohiba Bieke cigar, fetching $681,000, close to two-thirds of the total. According to Oscar Basulto, Vice President of Habanos, this is the top premium cigar on the market – though I'm sure there are a few people in Nicaragua, Honduras and the Dominican Republic who would disagree.

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Tags: auction, cigar, cigars, cohiba, cohibe-behike-cigar, cuba, cuban, cubans, Habano, habanos, havana, humidor, humidors, romeo y julieta, RomeoYJulieta

The Ultimate Luxury Gift Crate for Men - Cognac & Cuban Cigars

by Jared Paul Stern (RSS feed) —

Filed under: Cigars, Spirits, Books, Men's Style

King's Crate, a new company based in Toronto, has launched a line of luxurious new gift crates created specifically for men of refined tastes. The collection is crowned by the Havana crate (above), which includes a stylish humidor, ashtray and cigar cutter, three Cuban cigars (Cohiba, Montecristo and Romeo y Julieta), your choice of Havana Club rum from Cuba, Courvoisier cognac or Johnnie Walker Black Label Scotch, Pastiglie Leone Italian candies in a nostalgic pinup girl tin, cashews and roasted peanuts, and a copy of Schott's Food & Drink Miscellany. The price ranges from $196 - $270 Canadian depending on which booze you choose. Of course, the Cuban cigars and rum are only available in Canada (which has no Cuban embargo) and alcohol is limited to customers in Ontario at the moment, but the company has other crates filled with gourmet goodies and stylish accessories which can be sent anywhere. Each gift arrangement comes packaged in a handcrafted, reusable cedar crate.

Tags: Canada, cigars, Cuba, Cuban cigars, CubanCigars, gift basket, GiftBasket, gifts, humidor, Kings Crate, KingsCrate, Ontario, rum, Toronto

Caribbean Houses: History, Style & Architecture

by Jared Paul Stern (RSS feed) —

Filed under: Decor, Estates, Luxury Travel & Hotels, Books

West Indian decorative arts scholar Michael Connors presents a lavishly illustrated and comprehensive history of architecturally significant dwellings and estates in the West Indies in his beautiful new book Caribbean Houses from Rizzoli. The book is divided into five chapters, one for each European heritage that brought their own influences and designs to the region: the Spanish, Dutch, English, French, and Danish. In addition to the gorgeous photographs done exclusively for the book, Connors discourses on the area's rich architecture and interior design history, and gives the reader a "unique view of houses that combine the tradition of European styles with the vernacular island forms and decorative motifs." The featured islands include: The Spanish Antilles – Cuba, Haiti and the Dominican Republic; The Dutch Leewards – Aruba, Bonaire, and Curaçao; The English Islands – Barbados, Turks & Caicos, Jamaica, St. Lucia, and St. Kitts; The French Lesser Antilles – Martinique; and The U.S. Virgin Islands (formerly Danish) – St. Thomas and St. Croix.

Tags: architecture, Aruba, Barbados, Caribbean, Cuba, dominican republic, DominicanRepublic, interior design, InteriorDesign, islands, Jamaica, Michael Connors, MichaelConnors, Rizzoli, tropics, U.S. Virgin Islands, U.s.VirginIslands, West Indies, WestIndies

Cigar Roller Doubles Own Record: 142 Feet

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

Cut and light a double corona, and you're likely to draw comments about size, compensation and the like. So, imagine how the locals at your smoke shop would react to Jose Castelar's latest creation. He just set the world cigar rolling record (his fourth), doubling his last one. The result was a cigar 142 feet long.

The world record holder smoked his last record breaking cigar – 67 feet long – in 2005. At the time, he promised to continue breaking records ... and four years later, he's come through in style.

What's next? Castelar wants to roll a cigar the length of Malecon, Havana's six-mile seaside promenade.

The Cuban cigar roller, interestingly, limits himself to one cigar a day. What he does not say, however, is how long it is.

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Tags: cigar, cigars, cuba, cuban, guinness book of world records, guinness world record, GuinnessBookOfWorldRecords, GuinnessWorldRecord, havana, rolling, tobacco, tobacco industry, TobaccoIndustry, world record, world records, WorldRecord, worldrecordholder, WorldRecords

Cuervo Y Sobrinos Watches To Open Shop In Havana, Cuba

by Ariel Adams (RSS feed) —

Filed under: Timepieces / Watches

The modern version of Cuervo Y Sobrinos was started in the late 1990s, but is based on a Cuban watch brand that started, and was popular, in the pre-communism days of Cuba. In the late 1950s when Cuba's government changed and Fidel Castro entered power, the original Cuervo Y Sobrinos watch brand was no longer. With the name, comes the taste and style of old Havana in all new Cuervo Y Sobrinos watches - each watch even comes in a humidor. Regardless, today Cuervo Y Sobrinos has no actual presence in Cuba - but that is about to change.

The new Cuba, while still communist, is opening up its doors again slowly. Havana might never be the play city for the rich and famous as it used to be, but signs of new life can be seen. In a few months, now Swiss watch maker Cuervo Y Sobrinos will open up a new boutique store in Havana. Finally the original Cuban watch brand returns to Cuba in the city that helped make it famous. Pictured above is a Cuervo Y Sobrinos Esplendidos Monopulsante watch. Prices for the brand range from about $2,500 and way up.

Via WorldTempus (in French).

Ariel Adams publishes the popular watch review site aBlogtoRead.com.

Tags: boutique, chronograph, cuba, cuban, cuervo y sobrinos, CuervoYSobrinos, havana, shop, watch

The Plans For Cuba's Luxury Golf Resort

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels

As travel to Cuba opens up, plans for Cuba's first golf resort continue. Esencia hotels and resorts is planning a golf resort in conjunction with the Cuban government. The resort was announced last year but is attracting new attention as all eyes are looking toward Cuba as a travel destination once again. The Carbonera Golf and Country Club will include an 18-hole golf course, boutique hotel, 800 apartments, 100 villas and three restaurants from D&D the London restaurant group originally led by Sir Terence Conran. The club may cost up to around $400 million to create. It is set to open in 2011.
[via Daily Mail]

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Tags: carbonera country club, carbonera golf, CarboneraCountryClub, CarboneraGolf, cuba, esencia

Arteamericas Results: Shorter Distance to Crash

by Tom Johansmeyer (RSS feed) —

Filed under: Art

When you're close to the floor, you don't have far to fall.

That was the sentiment at the seventh Arteamericas event, which ran from March 27 – 30 at the Miami Beach Convention Center. This year, the fair drew 52 exhibitors, down from 70 last year. Collectors and dealers alike see this as positive in a generally harsh art market.

The Latin American art space, which is the focus of Arteamericas, did not grow as aggressively as the Chinese art sector, which has protected collectors. Since prices did not rise to absurd proportions (by art market standards, at least), the art crash of 2008 and 2009 won't impact these collectors as severely. Sitting on the panel, "Latin American Art in Today's Global and Local Art Markets," Vivian Pfeiffer, a regional director for Christie's in South Florida, said, "We don't have that much distance to crash." Further, collectors of Latin American art tend to be unwilling to sell their holdings even when times are tough.

The largest sale at the event was the 1945 painting Sorcerer, by René Portocarrero of Cuba. It fetched $135,000 on the first night of the event. Another Portocarrero, Woman with Birds (1982) sold for $40,000.

[Photo: "The Smoker" by Julio Aguilera"]

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Tags: art, art market, artist, ArtMarket, artwork, chinese art, chinese art exhibit, chinese arts, ChineseArt, ChineseArtExhibit, ChineseArts, christies, cuba, florida, latin america, latin american, LatinAmerica, LatinAmerican, miami

Habanos Elevates Security Measures

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

Habanos S.A., the official worldwide distributor of Cuban cigars, has developed a new way to thwart the efforts of the knockoff business. The company's introduced a new security seal that apparently has other safety features ... all of which are designed to prevent you from smoking a "Cohibo" while wearing your Folex and carrying Burbarry.

Specifically, there are two new elements on the Republica de Cuba warranty seal. One is a holographic label, which you'll find to the right of every warranty. The other is a barcode that will be on the left of the warranty. The seal is designed to fall apart if removed, making it impossible to reuse it on a box of fakes. Also, the barcode corresponds to a customized identification number stored in a database. One scan will show brand, size and market destination.

In the words of our esteemed former leader, "mission accomplished," right? Well, this all assumes that counterfeiters won't be able to build a better mousetrap.

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Tags: cigar, cigars, cuba, cuban, cuban cigar, cuban cigars, CubanCigar, CubanCigars, cubans, habanos, havana, tobacco, tobacco industry, tobacco use, TobaccoIndustry, TobaccoUse

Cuban Cigar Knock-Off Manufacturers Face Prison Terms

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

Illegal cigar factories, called "chinchals," have been among the few alternatives for Cubans looking for work in the midst of this global economic crisis. Risking time in prison, employees roll counterfeit Havana cigars in order to make a living. The risk may be worth the return, but it's hard to say.

One roller refused to reveal the extent of his pay raise when moving from state factories to the black market ... but "raise" was implied. Working in the legit world, this employee earned $17 a month. Counterfeit cigars tend to sell for $30 to $40 per box of 25, a price that's up to five times lower than the official price set by the Cuban government.

The price competition is only one reason for the government's distaste for the counterfeit cigar business, but it's a powerful one. Cuba's official cigar company, Habanos S.A., saw a 3 percent drop in sales last year. The government also cites the need to protect the image of the brand and fight corruption on the island. Authorities confiscate 1,500 to 1,700 boxes of illegally manufactured cigars every month.

It could be a losing fight, however. Barriers to entry are low, as supplies are easy to secure. And, desperation plays a role. When you need to put food on the table, risks become more realistic.

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Tags: cigar, cigars, counterfeit, cuba, cuban, cuban cigar, cuban cigars, CubanCigar, CubanCigars, fake, fakes, havana, tobacco, tobacco industry, TobaccoIndustry

What Happens to Cuban Brands Post-Embargo?

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

The biggest problem with access to Cuba may not be production capacity, as many suspect. Trademark and copyright issues have the potential to be a greater problem, and there is no easy solution.

You've probably noticed that brands such as Partagas, Montecristo and Cohiba occupy your local tobacconist's humidor. A saunter through a duty free store at any airport outside the United States will put the same names under your nose. Of course, these cigars have nothing to do with each other. The latter are Cuban, the former are not and the companies have no relationships. Cohibas in the United States are not the "non-Cuban" or "legal" versions of a single company's product.

General Cigar Co. Inc., for example, sells Cohiba cigars in the United States. Cohiba is also a prominent Cuban brand. Unfortunately, Habanos S.A. never registered the name up here. Habanos sued General Cigar, and a nine-year battle followed. In 2006, the U.S. Supreme Court ruled against Habanos (shocking, right?), reasoning that the embargo barred a challenge to General Cigar's claim.

When the embargo is lifted, there will be more legal challenges, and several companies will have to change their names and labels – ultimately requiring the reconstruction of brand identities from scratch. Winning the brand battles will have profound consequences. For this reason, General Cigar has "invested" close to $3.5 million on lobbyists over the past 10 years.

As with all other Cuba-related speculation, there is no way to forecast where this issue will go in a post-embargo market. Even if we assume that the Cuban brands will lose their claims, the impact on the market would be nearly impossible to predict. What we do know, however, is that the transition will be far from easy.

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Tags: cigar, cigars, cohiba, cuba, cuban, cuban cigar, cuban cigars, cuban embargo, CubanCigar, CubanCigars, CubanEmbargo, duty free, DutyFree, embargo, humidor, humidors, montecristo, tobacco, tobacco industry, TobaccoIndustry

Greeks Still Smoking, Cigars Holding Up

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

Cuba, the Dominican Republic, Nicaragua: these are the countries you would normally associate with the cigar business. But, Greece? Believe it or not, a market for local cigars is growing in Greece, and it's defying the global economic downturn.

Domenico Cigars is a small, two-room factory in Greece that sources its seeds from Cuba. It only puts out 70,000 sticks last year (a record). Instead of positioning the cigars as rare or limited editions, the company offers them at a reasonable $5 each, which is about half the price of the imported hand-rolled Cubans.

The group received little help from Cuba. Though they were able to tour the factories and plantations, nobody offered tips. They weren't allowed to take notes. So, developing an operation in Greece led to plenty of trial and error, with the actual rolling being the hardest part.

Despite the fact that the seeds are Cuban, the cigars are distinctly Greek, thanks to the local soil and the effort that resulted in the current product. The locals, it seems, remain committed.

[AP Photo/Thanassis Stavrakis]

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Tags: cigar, cigars, cuba, cuban, cuban cigars, CubanCigars, greece, greek, tobacco, tobacco industry, tobacco use, TobaccoIndustry, TobaccoUse

Storms Not Enough to Stop Cuban Tobacco Crop

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

Even with two hurricanes ripping through the region, western Cuba is expected to produce one of its tobacco best crops in quite a while. The plants are ready for harvest in the Vuuelta Abajo section of the island, and barns are starting to fill with those that have already been plucked. Apparently, this year's take is oily, which should do something to make this year's batch flavorful (I hope).

The 2008 storms caused $10 billion in damage to the island nation, stretching the effects of the ongoing financial crisis. Approximately 5,000 curing barns were damaged (or destroyed), and the repairs are still not complete. Despite the fact that most of the harvest had occurred before the hurricanes reached Cuba, the crop remained secure, as Cuban officials acted quickly to move the tobacco to safer storage facilities. But, up to 2 million pounds of tobacco were lost, according to Habanos S.A.

[Via Reuters, photo by Ron Melendi]

Tags: cigar, cigars, cuba, cuban, habanos, havana, smoke, smoker, smokers, smoking, tobacco, tobacco industry, TobaccoIndustry

Cuban Cigars, Don't Smoke the Label

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

"It happens all the time."

Ron Melendi, General Manager of De La Concha in New York, is tired of seeing guests walk through the door of his tobacco shop and ask for "Cubans." It's no secret that cigars from that particular island are illegal, yet people ask anyway.

It pisses Melendi off, and I don't blame him.

Cuban cigars are seen as a rare treat in the small, tightly intertwined community of upscale smokers. Since they have been illegal in the United States for more than 40 years, the act of cutting and lighting one implies unusual access, connections that most simply do not have. But, that's about it. A general decline in Cuban cigar quality, especially over the past decade, leaves the label as the only coveted aspect of the experience.

Of course, it's easy to dismiss this popular notion among tobacco retailers and manufacturers as a case of "sour grapes." After all, they can't sell what everybody wants. Jealousy wouldn't be much of a stretch ... if the quality issues weren't so real.

Several trips in the past three years to France, Spain, Mexico, Sweden, Finland, Iceland and Canada have led to Cuban cigars between my fingers. I've seen different humidors in stores in each of these countries and been able to rule out problems resulting from poor storage. I've had a few decent smoking experiences, but they haven't been life-changing. Even when the cigars are properly maintained, the taste and construction simply have not delivered.

Gallery: De La Concha Tobacconist

Tags: cigars, cuba, cuban, cuban cigar, cuban cigars, CubanCigar, CubanCigars, cubans, manhattan, new york, NewYork, smoke, smoker, smokers, smoking

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Cuban Cigar Sales Down, Bad Decisions Averted

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

Why are sales of Cuban cigars down? The minute the subprime mortgage crisis turned global, of course, demand had no place to go but down. And, there's always the quality issue that has plagued manufacturers in recent years. So far, the damage hasn't been bad.

Habanos S.A., which makes the storied Montecristo, Cohiba and Partagas brands, moved $390 million in 2008. That's a drop of 3 percent from 2007. The company, a joint venture involving the Cuban government and Altadis, says that this hasn't affected profits significantly.

Unsurprisingly, Habanos blames smoking bans in France, Germany and the United Emirates (among others) in addition to the financial crisis. If you can't find a place to smoke, you aren't likely to do it as much (a trial I endured in Scotland last year).

But, economic conditions are still the main event, particularly when you consider the secondary effects.

International travel took a dive last year ... to the tune of 11 percent. What's that mean? American cigar dilettantes weren't able to piss away as much on Cuban sticks as they may have in the past. Duty free shops thus moved fewer cigars than usual, with total sales in these venues down 24 percent from 2007 to 2008.

Despite the slip in sales and claims that profitability isn't seriously impaired, Habanos isn't optimistic about the future. On the subject of the U.S. embargo on Cuba, typically a favorite topic of speculation, the company would only say that it has "much worse problems to deal with in the world."

[Via Latin American Herald Tribune, photo by Steve Zak]

Tags: cigar, cigars, cohiba, cuba, cuban, cuban cigars, CubanCigars, economic crisis, economic downturn, EconomicCrisis, EconomicDownturn, economy, financial, financial crisis, financialcrisis, habanos, montecristo, mortgage crisis, MortgageCrisis, smoke, smoker, smokers, smoking, smoking ban, SmokingBan, tobacco, tobacco industry, TobaccoIndustry

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