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Fewer Cigar Smokers Want Cubans, Production Drops

Filed under: Cigars

The Cuban cigar industry is struggling under the dual pressures of smoking bans and economic malaise. Consumers around the world aren't buying as many sticks, and Cuba is cutting production. In Pinar del Rio, only 22.4 million leaves were harvested this year, off 14 percent from 26 million last year. Local media reports: "There was a reduction in planting due to limitations in resources caused by the economic crisis," according to the Financial Times.

With 70 percent of the market – not including the United States – the Cuban cigar business is a global force. So, its financial performance has broad implications, and the data doesn't look good:

According to the most recent report released by the government's statistics office, the industry has fallen on hard times in recent years, with production of cigars for export down from 217m in 2006, to 123m in 2007 and 73m last year as the business drew on its inventory.

Export cigar sales plunged to $218 million last year from $243 million in 2008 ... but keep in mind that the effects of the late 2008 financial crisis didn't really come to bear until 2009.

Of course, consumption in the United States is unchanged, because you can't go below zero. Nobody smokes Cuban cigars in the United States because they're illegal ... right?

Gallery: La Casa del Habano, St Barths

Vegas Robainos at La Casa del Habano, St Barths

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Tags: cigar, cigars, cuban, cuban cigars, CubanCigar, cubanos, cubans, Habano, habanos

The Cigar World Loses Alejandro Robaina

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

The world has lost a great tobacco grower. Alejandro Robaina, a legend in Cuba and the rest of the world, died last weekend at the age of 91. His tobacco leaves wrapped some of the finest cigars seen in his lifetime. , starting on his family's fields when he was only 10 year old, having smoked his first cigar a year earlier. Since then, his handiwork was evident in brands such as the Cohiba Esplendidos and Hoyo de Monterrey Double Corona.

Robaina was something of a public face for the Cuban tobacco industry, traveling until age would no longer let him do so effectively. That's when smokers worldwide came to him, eager to see the environment – and the man –responsible for some of the most popular cigars on Earth, among others. His grandson, Hiroshi, now runs the show, having taken over as Robaina got older.

Even after Fidel Castro came to power, Robaina remained an independent tobacco grower, and he was named the best in the country by the Cuban government in the mid-1990s, receiving the award from Castro himself. In 1997, Habanos S.A. created the Vegas Robaina brand, the only one named for a Cuban tobacco grower. Yet, it smokes differently from most Cuban cigars, and doesn't appear to have much of Robaina's tobacco in it, according to James Suckling of Cigar Aficionado.

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Tags: cigar, cohiba, habanos, tobacco, tobacco industry

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

Cuba's Looking for Ladies to Light Up

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

Cuban cigar sales are in the tank right now. A combination of economic woes and anti-smoking legislation around the world have put the squeeze on Habanos S.A., the company behind Cuban cigars. Sales fell 8 percent last year, the company said, to $360 million last year. This follows a sales decline in 2008. Even though the economy is showing signs of recovery, Cuban cigar haven't come back. So, the company is looking to move into some relatively uncharted territory: women.

To find its way into women's hands, Habanos has created a smaller and milder Romeo y Julieta (the women I know who smoke cigars, however, tend to prefer something more robust). Women comprise only a smal share of the market – between 5 percent and 10 percent according to Habanos marketing director Ana Lopez.

Though some love from the ladies may help, Habanos realizes that it won't change the world for the beleaguered Cuban cigar company, which expects only a modest performance in 2010, due in large part to soft economic conditions in Spain.

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Tags: cigar, cigars, cuban, cuban cigar, cuban cigars, CubanCigar, CubanCigars, cubans, Habano, habanos, women smoking cigars, WomenSmokingCigars

Mexican Cigar Distributor to Fight Counterfeit Cuban Trade

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

Mexico's Cuban cigar distributor, Importadora y Exportadora de Puros y Tabacos (IEPT), has taken new steps to prevent the spread of counterfeit Cuban cigars. The company has put together a new certification system that will validate cigar retailers across the country as legitimate sellers.

IEPT is licensed by Habanos S.A., which is the global distributor of Cuban cigars. Habanos has been struggling with counterfeiting for years, with problems in tourist-infested parts of Mexico being particularly severe.

The new campaign is designed to support retailers that sell the real deal, which hopefully will resonate with cigar consumers.

But, let's be realistic. The problem that has to be solved first is the love of "smoking the label." When customers stop wanting people to see that Cohiba label, they'll begin to make better choices.

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Tags: cigar, cigars, cohiba, cuban, cuban cigar, cuban cigars, CubanCigar, CubanCigars, cubans, habanos

Cigar Companies Bringing Back Salomon

by Tom Johansmeyer (RSS feed) —

Filed under: Cigars

Cigar manufacturers are taking another look at the Salomon cigar style. It's a classic, according to Cigar Aficionado's Gregory Mottola, that many seem to have forgotten for a while. Rocky Patel, La Aurora and La Flor Dominicana are bringing back Salomon, and customers are voting for the size with their dollars. On that small island south of Florida, Habanos S.A. has added a new Salomon to its product line.

For those of you who are new to cigars, you probably haven't seen a Salomon. It's a fairly large cigar that's tapered at both ends, and it is often finished with a nipple foot. Don't confuse it with the smaller perfecto or larger diadema. Apparently, this isn't an easy size to produce, calling for a considerable amount of rolling skill and twice the time of a "normal" stick.

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Tags: cigar, cigars, habanos, la aurora, LaAurora, rocky patel, RockyPatel, salomon, tobacco, tobacco industry, tobacco use, TobaccoIndustry, TobaccoUse

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

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 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

The 40th Anniversary Cohiba Announced

by Deidre Woollard (RSS feed) —

Filed under: Cigars

The mystery has been revealed! Cigar Aficionado reports on the new Cohiba which was unveiled today in Havana. The new cigar set a record for the price of a young cigar. A limited edition humidor of 40 cigars sells for 15,000 euros. The cigar, which was produced for the 40th anniversary of the brand, is a Behike and all 4,000 cigars for the project were rolled by one person, Norma Fernandez Sastre. The Behike measures 7 1/2 inches long by 52 ring gauge. The cigar will only be available in the humidors which are made of ebony, bone and skate skin. The cigar will need to be aged but with time it will likely become a legendary smoke. The 100 humidors are numbered and each cigar is also individually numbered on a secondary band.

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Tags: behike, cigar, cuba, cuban cigar, habanos, havana, tobacco

Joseph Fiennes Attends Cigar Festival To Celebrate New Cigar

by Deidre Woollard (RSS feed) —

Filed under: Cigars

We recently mentioned the Fesitval del Habano that is taking place this week. In order to promote the new short Chuchill size from the Romeo y Julieta brand, they brought in Joseph Fiennes, famous for playing the bard in "Shakespeare in Love." It was Fiennes first visit to Cuba and her tossed off a few lines from Romeo and Juliet at the cigar festival. The festival will also bring the announcement of a new mystery cigar to celebrate the 40th birthday of Cohiba.

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Tags: cigar festival, cigars, cohiba, cuba, cubans, habanos, havana, romeo y julieta

Cigar Sales Going Strong in Cuba

by Deidre Woollard (RSS feed) —

Filed under: Cigars

Cuban cigars are still going strong. The country sold about 160 million cigars last year in a $350 million business exporting cigars to Asia and Europe. The total was in line with recent years’ sales. The world market for premium cigars is about 400 million, half of which are sold in the United States although Cuban cigars can not be legally sold here. I wonder how many counterfeit Cubans were sold in the U.S. last year and what the numbers would be if Cuban cigars could be sold here.

[vintage poster via Havana Mike]

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Tags: cigars, cuban cigars, CubanCigars, exports from cuba, habanos, havana

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