financial crisis

Financial Crisis Puts Cigar Nubs in Fashion

Filed under: Cigars

You know the market's tough when cigar smokers talk about cutting back. The crisis is real when they actually do so. With the sale of boxes, humidors and high-end cigar accessories dropping (I have anecdotally) – not to mention a cigar tax increase that has moved quickly from specter to materialization – retailers are scrambling for ways to keep customers in their stores.

When I met with Don Pepin Garcia back in November to discuss his new release, My Father's Cigar, he mentioned the need to keep prices reasonable, citing long-term relationships with his customers as taking priority over short-term measures. But, it looks like this may not be enough – as evidenced by the "nub club."

Discount cigar retailer Famous Smoke Shop has put together a selection of six-cigar samplers, consisting of "nubs," and is pricing them favorably to keep cigar smokers engaged. This new program is intended to allow customers to try nubs without requiring them to shell out for full boxes. Each sampler has three pairs of cigars, each with different wrappers: Habano, Connecticut and Cameroon. Prices range from $27 to $34.50 per pack.

Promotions like this one drive home the fact that we're all in it together. The manufacturers and retailers don't want to see us curtail our smoking experiences or trade down to "lesser" cigars. They want us to smoke what we know we enjoy. At the same time, smokers realize that we have to do our part and continue to buy the sticks we like.

Cooperation is better than any bailout program.

[Photo by Steve Zak]

Source

Tags: cigar, cigar accessories, CigarAccessories, cigars, financial crisis, FinancialCrisis, humidor, humidors, smoke, smoker, smokers, smoking, tobacco

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