Oettinger Davidoff has appointed Beat Hauenstein as its new CEO in a move described as ‘part of the ongoing rejuvenation of the operational management’.
Hauenstein, who was previously the company’s COO, succeeds Hans-Kristian Hoejsgaard.
Meanwhile, the Board of Directors of the company has nominated Domenico Scala as its new chairman.
Domenico Scala was previously CFO of Syngenta and CEO of Nobel Biocare. Until May 2016, he chaired the independent Audit and Compliance Committee of the Fédération Internationale de Football Association. Currently, he is the chairman of Basilea Pharmaceutica, BAK Basel Economics as well as the president of BaselArea, a member of the board of overseers of Tufts University in Boston and a member of the Bank Council of Basler Kantonalbank.
Scala succeeds Andreas Schmid, who had been a board member for 10 years.
A company press note said the board of directors thanked Schmid and Hoejsgaard ‘for their many years of successful work for the company’, and wished them ‘all the best for their personal and professional future’.
A US senator has decried the electronic-cigarette provisions of the Food and Drug Administration’s Comprehensive Plan for Tobacco and Nicotine Regulation, which was announced on Friday.
“The tobacco industry produces products that kill thousands of Americans each year, and sustains itself by recruiting ‘replacement smokers’ by marketing to young adults,” Oregon’s Senator Jeff Merkley, the top Democrat on the Senate Appropriations Subcommittee overseeing the FDA, said in a statement posted on his website. “That’s why we were hoping to hear a strong plan from the FDA today [Friday].
“Unfortunately, the FDA instead announced that it will allow e-cigarette products, largely aimed at children, to remain on the market for five more years with very little regulation.
“According to the CDC’s [Center for Disease Control and Prevention] latest data, 20 percent of high school students, and seven percent of middle school students – 12 and 13 year old kids – use e-cigarettes. And they use it [sic] because they have names like ‘cotton candy’, ‘froot loops’ and ‘gummy bear’. These are not products targeted towards adults. “While the FDA’s goal of reducing the level of nicotine in traditional cigarettes is an important and admirable goal, it does nothing to address the growing threat of e-cigarette usage. Thousands more children will become addicted during this time, and everyone who cares about America’s youth should be deeply concerned by this decision.”
Meanwhile, the American Heart Association (AHA) has said that while the FDA’s move to lower nicotine and examine flavoring comprise a promising step, the Deeming Rule delay is disappointing. It is concerned, also, that the FDA has raised the possibility of exempting premium cigars in the future.
“FDA’s move today to lower nicotine levels and take a harder look at how flavored tobacco products attract the young is to be commended,” said AHA CEO Nancy Brown.
“However, the Association is disappointed with the agency’s decision to delay certain e-cigarette and cigar compliance deadlines. Altering the deadline for FDA review of e-cigarettes and cigars is a troubling step and one that we will closely monitor.
“We are also concerned that the FDA has raised the possibility of exempting premium cigars in the future. Tobacco in any form presents risk. That’s why we have advocated for – and will continue to insist – that FDA oversight of all tobacco products is absolutely essential. Premium cigars are no different. Cigars are a concern because high school-aged males now smoke them at a higher rate than [they smoke] cigarettes. As we have seen in recent Senate legislation, often the definition for ‘premium cigars’ creates a loophole that allows the flavored and cheap cigars that attract youth to qualify as ‘premium’. Weakening the deeming rule in any way could lead to an increasing number of Americans at risk for heart disease, stroke or even an early death due to tobacco use.
“As the FDA carries out its new nicotine and tobacco plan, we urge the agency to remember that protecting public health, particularly the health of young people in this country, should be at the very top of its priority list. While we look forward to agency actions that can lower the number of Americans exposed to the harms of combustible tobacco, the FDA must advance all tobacco regulation. We must not take two steps forward and then one step back.”
The 22nd Century Group welcomed the FDA’s announcement. The group said that it was ‘uniquely positioned to deliver on the new product standards’ given that its proprietary “Very Low Nicotine” cigarettes contained less than 0.6 mg nicotine per piece and yielded less than 0.05 mg nicotine per piece. These levels represented a nicotine reduction of at least 95 percent relative to the levels of other cigarette brands.
The group said its tobacco was grown on ‘independently-owned farms in US, and was not subjected to any ‘artificial extraction or chemical processes’.
It was the only company globally that was capable of growing tobacco with non-addictive levels of nicotine.
The cigarettes produced from this tobacco, it added, had the ‘taste and sensory characteristics of conventional cigarettes’.
Science-based regulations may be appropriate for most tobacco products; fine cigars deserve to be regulated as an art.
By George Gay
Longer ago than I care to remember, I attended what, if memory serves me correctly, was called a cigar dinner. Now I know, because I have written a story about such matters, that some chefs like to occasionally include tobacco in their more exotic dishes. So I had better explain that the dinner I attended—at one of London’s best hotels—comprised a splendid, tobacco-free meal that was punctuated with fine cigar smoking.
I cannot remember what the dinner marked or celebrated, but I clearly remember two things from that evening. The first was that the diners on the far side of the room from where I was sitting disappeared. One moment they were there; the next they were not. It was like watching Claude Rains in TheInvisible Man as he took off his bandages and clothes, though without the preceding violence, I’m glad to say. In fact, what had happened was that, unnoticed, the huge amount of cigar smoke that had been generated by the large number of guests had filled the upper reaches of the room in which the dinner was held and then gradually descended to about the height of the head of a seated person. The effect didn’t last for long because, I assume, the hotel management was informed of the situation and somebody was dispatched to press the button labeled “extraction system.” Certainly, there was a noise of machinery starting up, and the smoke cloud disappeared within a matter of seconds.
The second thing I remember about the dinner was that one of the men seated at my table, who anyway owned many fine cigars, told me that he had been left a huge number of such cigars by somebody who had recently died. The interesting thing about his story was that whereas the executors had told him of the existence of the cigars, they couldn’t tell him how many there were nor where they were to be found. So the man was enjoying himself doing the rounds of those London establishments that let out humidor space in his quest to track down the cigars. He had found a great many by the time that he spoke with me, but he was confident there were more to find. For all I know, he’s still searching. There are worse ways to spend your time, I imagine.
A special species
I present these two vignettes in the hope of convincing you, the reader—while, at the same time, reminding myself—that there is something special about fine cigars. You see, I have noticed that, in the U.S., there has been a lot of special pleading about how fine cigars should be protected from the worst ravages of the Food and Drug Administration’s (FDA) deeming regulations while—though this is not said expressly—cigars that are not in the “fine” category should be left to their own devices, and initially I was less than comfortable with this argument. I mean, fairness suggests that the products enjoyed by the financially struggling should be protected from the regulations rather than those enjoyed by the better off, who are well-placed to find something else to occupy their time. (Of course, I don’t mean to imply that cigars not described as “fine” are defenseless. Far from it. Many of them are made by major manufacturers that can afford big lobbying spends.)
But it isn’t that simple. The division between who can afford fine cigars and who cannot is not as marked in the U.S. as it is in Europe. I don’t want to get myself into an argument that I’m not going to win about what constitutes a fine cigar*, but, in the U.S. at least, this is a product that is enjoyed not only by those financially well-off. As I understand it, plenty of people who are modestly well-off smoke fine cigars—policemen and firefighters, for instance.
Something else that marks fine cigars out as being special concerns the fact that a lot of those that are hand-rolled in the U.S. are the products of small and medium-sized businesses, some of which are family concerns. And, to my mind, it is important for two reasons that such companies are encouraged to continue to operate. One is that they form part of an industrial complex whose strength lies in its diversity, in its multinational, large, medium and small businesses. That their well-being should be threatened by the sorts of rules put forward by the FDA as part of its deeming regulations is, to my mind, so counterproductive as to be absurd.
The second point has to do with the consumer rather than the business. Look at the consolidation that has taken place within the cigarette industry and the way in which that consolidation has helped the shareholder rather than the consumer. Then look at how relatively diversified the local fine cigar industry is and at how the businesses within it serve their customers with a huge range of products.
And, as is mentioned above, these are products that can be savored by people from just about any walk of life, though it should be noted that, for whatever reason, this appeal does not extend to those ruled to be underage when it comes to buying tobacco products. Perhaps price is one factor in persuading young people not to indulge in fine cigars, but I suspect, too, that these products involve too much of an investment in time. One of the things that appeals to many fine cigar smokers—sitting around with like-minded people discussing cigar colors, flavors, shapes, densities, bands, boxes, etc.—is probably a turn-off for young people, who need to be doing more important things—things of which, at my age, I am vaguely aware but, thankfully, couldn’t describe.
Fine cigar boxes, meanwhile, constitute an issue in themselves. Given that fine cigars are smoked only by people who are committed to such products, who would want to sully such beautiful boxes with ugly health warnings? What possible purpose is served by besmirching these creations in this way? Are we saying that the people who smoke fine cigars aren’t aware that their habit carries some risk? And, in any case, don’t we create enough ugly things with our interminable, gratuitous wars?
Overall, much of the threat faced by fine cigars is caused, I think, by a misunderstanding to do with the word “science.” Some time ago, I noticed that the recently appointed head of the FDA, Scott Gottlieb, on being asked what his intention was in respect of fine cigars, said, “Whatever we do in this regard is going to need to be science-based, of course.” Surely, this is the very opposite of what is needed. Fine cigars constitute an art form, and, as such, though they might be informed by science, cannot rightly be governed by science. The production of the leaf tobacco that is used in making fine cigars can usefully be improved by the application of scientific methods, just as the production of oil paints can be improved by scientists. But then to extend science’s remit to how the oil paint is applied to the canvas or how the viewer perceives the final painting would be nonsense, just as it would be to extend such a remit to how fine cigar tobacco is rolled and how what it delivers is savored by the smoker. And this applies especially to the bureaucracy-dominated science in which the FDA specializes.
*I would say, however, that, at the very least, a “fine cigar” would have to be made by rolling by hand a bunch of good-quality tobacco leaves within a leaf binder and wrapper.
In a 93-page ruling, US district judge Amy Berman Jackson has upheld the Food and Drug Administration’s decision to regulate vapor devices and cigars in the way that cigarettes are regulated, according to a story in the Washington Post relayed by the TMA.
Jackson concluded the agency had “acted within the scope of its statutory authority”.
She rejected arguments by Nicopure Labs and the Right to be Smoke-Free Coalition, which includes the American Vaping Association, vapor companies and trade groups, that said the FDA’s creation of the Deeming Rules exceeded its authority and violated the Administrative Procedure Act.
Under the FDA rule, she said, vapor manufacturers “are now required to tell the 30 million people who use the devices what is actually in the liquid being vaporized and inhaled”.
“We are still reviewing judge Jackson’s opinion,” said Gregory Conley, president of the American Vaping Association. “The legal and legislative processes are both long roads with plenty of bumps along the way. The fight to save vaping is far from over.”
Attorney Azim Chowdhury, representing the Right to be Smoke-Free Coalition, said in a tweet that they were considering appeal options.
The China National Tobacco Corporation (CNTC) and Cuba’s Habanos S.A. have signed a letter of intent on increasing Cuba’s cigar exports to China, according to a Xinhua News Agency story.
The CNTC’s general manager, Ling Chengxing, and the co-presidents of Habanos, Inocente Nunez and Luis Sanchez-Harguindey, signed the agreement in Havana on Sunday.
According to the agreement, Habanos will assist with cigar production in China while expanding its cigar sales there.
“With the support of the Cuban side and the Chinese side, and the Chinese and Cuban people, I am sure that Cuban tobacco is going to do very well in China,” said Ling, who doubles as the director-general of the State Tobacco Monopoly Administration, the regulator of China’s tobacco industry.
The story said that Cuba’s cigar and cigarette sales to China accounted for more than half of its sales by volume and about 70 percent by revenue.
Habanos, a joint venture between Cuba’s state-owned Cubatabaco and Altadis, an affiliate of Imperial Brands, recorded revenue of about US$450 million last year.
Cuba plans to mark World No Tobacco Day on May 31 by updating its existing regulations on the control of smoking in public places, according to a story in Prensa Latina.
The head of the Department of School Health at the Ministry of Education, Yanira Gómez, said during a press conference held in Havana that Cuba had had in place since 1974 a regulation prohibiting tobacco smoking in institutions and state entities, including schools.
The regulation had been designed to be effective, taking into account the particularities of the educational system.
But it was now necessary to update the regulation by promoting new initiatives.
The story did not indicate what changes might be made to the smoking regulations.
But it said that this year’s campaign would aim ‘to mobilize the main social actors, as well as adolescent and young children, in the fight against exposure to tobacco smoke and in terms of sustainable development’.
Oettinger Davidoff of Basel, Switzerland, has inaugurated a new factory in Danli, Honduras. After acquiring tobacco plantations in the Condega region of Nicaragua and in the Jamastran Valley in Honduras, the company purchased land in Honduras 2015 to build a new cigar factory.
The new facilities are located in the city of Danli, Honduras’s main tobacco region: southeast of the capital, on the Panamerican Highway, a few kilometers from the border with Nicaragua.
With this strategic move, the company responds to the fast growing global demand for its key Camacho brand as well as strong growth in the U.S. of its Baccarat, La Fontana, Legendario, National brands.
“I am proud to officially inaugurate our new factory,” said Hans-Kristian Hoejsgaard, CEO and Board member of Oettinger Davidoff. “It is not only a milestone in the history of our company, but also reflects our global ‘crop-to-shop’ philosophy with this extension of the vertical integration of the business.
“Our investments mirror the strong growth on Camacho over the past five years which saw its global sales double, as well as the needed production capacity to continue expanding Camacho globally.
“Furthermore, I am particularly glad that we are able to make a substantial contribution to Honduras’ economic and social development by employing over 500 people in Danli.”
ODAG Factory_4 (PRNewsfoto/Oettinger Davidoff AG)
“Leading and managing this splendid new factory is the greatest honor in my career thus far,” said Manuel Batista, general director Central America, Danli, Honduras.
“In view of important future projects, combined with our focus on cost optimization and improved working capital, this is the perfect time to consolidate and further expand the Honduran craftsmanship. It makes me very proud to see our team of master blenders and cigar artisans strive relentlessly to build up and continue to develop the business of Oettinger Davidoff worldwide. They are the ones who bring to life our finest quality cigars; thrilling aficionados across the globe.”
ODAG Factory_2 (PRNewsfoto/Oettinger Davidoff AG)
Productivity at Oettinger Davidoff’s new factory is expected to increase dramatically and processes in cigar production are to become more efficient in the years ahead. The high quality of the company-owned tobacco plantations enables Oettinger Davidoff to supply first-class tobacco and successfully implement plans for innovation with existing and new crops.
The site of the new facilities in Danli is just under 41,806 square meters. The factory building, designed by Honduran architect Gonzalo Nunez Diaz, has several production halls, cold rooms, loading/unloading zones, a spacious guesthouse and the refectory for employees who meet the highest standards of technology and logistics. It has been constructed on an area of more than 11,000 square meters; with an additional area of 3,500 square meters for warehouses.
“Thanks to the location of the factory, near Danli, we have access to a skilled workforce trained in manufacturing fine cigars, which, in a sense, guarantees business continuity over time,” said Javier Plantada, vice president global production at Oettinger Davidoff Honduras. “Our new facilities symbolize the momentum, the passion and enduring desire of our team to be an integral part of Oettinger Davidoff AG.”
PM USA’s domestic cigarette shipment volume during the three months to the end of March, at 28,727 million, was down by 2.7 percent on that of the first quarter of 2016, 29,539 million.
In reporting its first-quarter results, Altria – of which PM USA is its cigarette division – said that the fall in cigarette shipments was driven primarily by the industry’s rate of decline, partially offset by trade inventory movements. ‘When adjusted for trade inventory movements and other factors, PM USA estimates that its domestic cigarettes shipment volume decreased by approximately three percent, in line with its estimate for total industry cigarette volumes,’ Altria said.
Within PM USA’s total shipments, Marlboro volume was down by 2.6 percent to 24,695 million, while the volume of the company’s other premium brands fell by 4.2 percent to 1,450 million. Sales of discount brands fell by 3.1 percent to 2,582 million.
PM USA’s cigarette market share during the three months to the end of March, at 51.0 percent, was down by 0.1 of a percentage point on that of the first quarter of 2016.
Marlboro’s share fell by 0.2 of a percentage point to 43.6 percent, while the share of the company’s other premium brands fell by 0.1 of a percentage point to 2.7 percent. The share of PM USA’s discount brands increased by 0.2 of a percentage point to 4.7 per cent.
Altria’s first quarter results, reported yesterday, included also those of Middleton and USSTC.
Middleton’s domestic cigar shipment volume during the three months to the end of March, at 367 million, was up by 12.2 percent on that of the first quarter of 2016, 327 million. Shipment volume of the company’s Black & Mild brand was increased by 14.5 percent to 363 million, while that of its other brands fell from 10 million to four million.
USSTC’s domestic market shipment volume of smokeless products during the three months to the end of March, at 198.5 million cans and packs, was down by 5.0 percent on that of the first quarter of 2016, 206.1 million.
Copenhagen’s shipment volume fell by 0.2 percent to 124.5 million, and Skoal’s volume was down by 13.8 percent to 55.6 million. The shipment volume of other brands fell by 6.5 percent to 15.7 million.
The decrease in smokeless volumes was said to have been caused primarily by a voluntary recall of some of USSTC’s products. The company estimated that, overall, the smokeless product category volume grew by about two percent during the past six months.
USSTC’s retail market share during the three months to the end of March, at 53.5 percent, was down by 0.7 of a percentage point from that of the first quarter of 2016.
Copenhagen’s market share increased by 1.2 percentage points to 33.0 percent, while Skoal’s share fell by 1.6 percentage points to 17.3 percent. Other brands’ market share fell by 0.3 of a percentage point to 3.2 percent.
In announcing the results, Marty Barrington, Altria’s chairman, CEO and president, said that Altria was off to a solid start in 2017, despite some short-term headwinds.
“We grew first-quarter adjusted diluted earnings per share by 1.4 percent against a difficult comparison in the year-ago quarter when we grew adjusted diluted EPS more than 14 percent,” he said.
“The smokeable products segment continued to generate strong results, which offset lower equity earnings from our beer investment and the effect of the voluntary product recall in the smokeless products segment.
“Our business fundamentals remain strong and we believe we are well-positioned for the rest of the year.
“Thus, we are reaffirming our 2017 full-year adjusted diluted EPS growth guidance of 7.5 percent to 9.5 percent. We continue to expect adjusted diluted EPS growth to be weighted to the second half.”
President Donald Trump’s nominee to lead the Food and Drug Administration (FDA) refused at his confirmation hearing on Wednesday to commit to banning flavored cigars and electronic cigarettes, according to a story in The Hill.
Scott Gottlieb said he could see where flavored products might be inappropriate in one context and appropriate in another.
He indicated that he thought that FDA experts should be making those determinations.
In answer to a question from the Democratic Senator Patty Murray about the flavors gummy bears and cookies and cream, Gottlieb said he recognized there needed to be a line there somewhere, but that he didn’t know where that line was to be drawn.
“I think that line needs to get drawn by people who are experts in evaluating that science, and I want to support that,” he said.
Gottlieb said Murray was raising some imperative questions about when a reduced-harm product such as an electronic cigarette could be useful in transitioning people away from combustible cigarettes and when they might be a gateway to adolescent smoking.
“I think a properly constructed and overseen regulatory process should have the capacity under the authorities Congress gave the agency to make these determinations,” he said.
Habanos SA celebrates the Cuban cigar with a splendid party.
By Timothy S. Donahue
Hector Luis Prieto
It isn’t easy. Sitting in the back corner of a tobacco field, Hector Luis Prieto told Tobacco Reporter that being a famous grower in Cuba has only made his job more complicated. It was easier when nobody knew his name. He wants to spend his time at his farm, with his family. That’s nearly impossible now that busloads of “turistas” visit his plantation almost daily.
“The crop is my life. It’s my family’s life. It’s everything to us. Tobacco is how we survive,” says Prieto. “I rarely leave; it’s my home.” Prieto is young (45), in farmer’s years. He wakes up every morning at 4 a.m. to inspect the fields. Every morning. Every leaf. Nothing is left unseen. No plant goes untouched. His dedication is impossible to overlook.
Prieto has to check his plants daily during the growing season, which can begin as early as late October and end sometime in February. He rises so early because he knows the tourists will be arriving soon, and once the busses start unloading, he won’t have time to manage his fields properly. Everybody wants to get their picture taken and possibly score a cigar rolled by Prieto himself. That’s a rarity nowadays; Hector only rolls for special friends. Handing me a fresh cigar, he said “aprecia esto”—appreciate this. He doesn’t plan on rolling many more. We were already smoking a cigar rolled by his friend, so this special one got put safely into a pocket.
It wasn’t always like this. Before 2008, the year Prieto won the Habanos Man of the Year award in the production category, his farm wasn’t on the list of stops for the tour buses full of tobacco travelers. Now, Prieto’s a legend. He is the youngest man ever to win the prestigious award. That is some pretty high praise, as Prieto’s operation is in the western Cuban province of Pinar del Rio in the town of San Juan y Martinez, an insanely bumpy two-hour drive from the capital city of Havana. My companion’s face hilariously smashed against the car roof numerous times as he tried to sleep on the trip there. Prieto won the award for having a higher yield of fine wrapper tobacco than any of his neighbors in the Vuelta Abajo region, home to perhaps some of the finest tobacco farms in the world.
Prieto isn’t alone in his love of tobacco. It’s a passion for these island people. Cuba has long been known for its exceptional cigars. Celebrating that tradition, Habanos SA, part of the state-run tobacco monopoly, has hosted the Festival del Habano for 19 years in a row now. The gathering is billed as the world’s top event for premium cigars. It is as advertised, too. It’s an intense week completely devoted to the knowledge and enjoyment of Habanos (Havana cigars) and the latest developments in the field. There is no tobacco event quite like it anywhere else in the world.
Opening doors
This year’s event, held from Feb. 27 to March 3, centered on the H. Upmann, Montecristo and Quai D’Orsay brands, all of which received some major additions to their portfolios during the festival. More than 2,000 participants from 50 countries attended the revelries, as well as 180 journalists and 70 companies from 11 countries. The event’s traditional trade fair includes numerous manufacturers and suppliers in the tobacco world, artisans, collectors, and suppliers of smoking accessories and luxury goods. The seminars are lumped in with the trade fair, which is held in the massive Palacio de Convenciones in Havana.
The event began with the traditional press conference held inside Havana’s International Conference Center, where Habanos SA company executives answered questions and provided an overview of the company’s sales figures for the previous year. Nothing is ever easy in Cuba, however. Oddly, event workers would often only open one side of a double-doored entranceway, making getting into or out of the different breakout sessions a complicated mess. To be fair, they were trying to check badges as well. Life also happens on Cuban time here, meaning everything starts an hour or two late. You learn to accept these things.
Starting off, Enrique Babot Espinosa, Habanos’ chief of market operations, told attendees that the company “reaped” $445 million worth of revenues in 2016, with 450 million units sold, accounting for 70 percent of the global market, excluding the U.S. Then, Habanos co-presidents Inocente Nunez and Luis Sanchez-Harguindey answered questions from the crowd.
When asked about the loosening of trade restrictions by the U.S., Sanchez-Harguindey said the steps are a move in the right direction. “We will be able to bring our culture, our product, closer to the U.S. customer. Our product is highly demanded and appreciated around the world … these are exactly the same expectations that we have for the U.S.,” he said through an interpreter. “These measures must be put into context, as there are conditions such as the number of cigars that can be imported in the U.S. The main difference, as compared to previous measures, is the limit of 100 units. This is as opposed to the previous measure of $100. The impact over the past 2 1/2 months [since the change] has not been significant.”
The best-selling vitola (format) worldwide has been Robusto. The Cohiba Robusto is the leading seller, followed by Partagas and Romeo y Julieta. In descending order, the largest markets for Cuban cigars are Spain, France, China, Germany, Cuba and Switzerland. Together, these six countries account for 50 percent of Habanos sales. “Increased tourism [13 percent growth from 2015 to 2016, totaling more than 4 million visitors a year] has appreciated the growth of sales in the Cuban market,” said Sanchez-Harguindey. Overall, Habanos claims to be experiencing a 5 percent yearly growth, while the industry overall grows at 0.5 percent. “A heads-up for 2017, we are aware of challenges, and we continue to remain consistent in our pursuit to launch new products,” said Sanchez-Harguindey. “We are consistent in our mission towards innovation and quality.”
Handmade Habanos
Habanos SA was founded in 1994 to commercialize all the brands of Habanos and tobacco leaf worldwide. As an arm of the Cuban state tobacco company, Cubatabaco, Habanos controls the promotion, distribution and export of Cuban cigars and cigarettes. The company operates in more than 150 countries around the world. The term “Habanos” has been used since the late 19th century to identify the “puro” Cuban cigar. After more than 200 years, Habanos are the only cigars that continue to be made totally by hand with long filler, according to Habanos.
Visiting a Cuban cigar factory is a unique experience. The smell is unmistakably tobacco, with a sweet honey and crisp cedar scent. Real Fabrica de Tobaccos La Corona is one of the more modern factories in Cuba. Although rich with tradition, the factory has changed locations several times throughout its history. Formerly known as “La Casa de Hierro,” La Corona is also the home to the Romeo y Julieta brand.
The cigar factory is a living entity, and its rolling room is its central nervous system. Here, the dedicated hands of expert “torcedores”—cigar rollers—are hard at work. It’s crowded, and everyone has something to do. Only security guards and tour groups are standing around. Visitor Mark Ryan, of U.S.-based Daughters & Ryan, said he was in awe of the speed and quality of the Cuban craftsmanship. “Wow,” he exclaimed. “They are really good.”
Festivalgoers were also able to visit the historic Fabrica de Tabacos Torcido H. Upmann, one of the most renowned cigar factories in the world. This is where the first vitolas for H. Upmann were created, according to Habanos. This year, the factory began production of the first H. Upmann Gran Reserva Cosecha 2011, in its iconic Sir Winston vitola. It’s the first Gran Reserva presented by the H. Upmann brand since its founding over 170 years ago, according to Habanos.
This factory is special. Herman Upmann was a former banker who was the first to ship cigars in cedar boxes, according to our tour guide. When you enter, the rollers are smacking their chavetas (a crescent blade specifically designed for use in making cigars) on their rolling tables as a loud welcoming gesture. There are 695 workers in the H. Upmann rolling room alone. They produce up to 30,000 cigars a day. Music plays loudly, and everyone seems to be having fun producing product. Several rollers are simultaneously smoking cigars.
It’s old, the factory, and it has several floors that housed rollers, quality control, aging and packaging in different areas as you climb the black wrought-iron stairs. All the H. Upmann brand’s vitolas are produced at this factory, including the Linea Magnum with Magnum 46, Magnum 50 and the recently launched Magnum 54. Rollers here are also responsible for producing prestigious vitolas for the Montecristo brand, including the most premium line offered by Montecristo, the new Linea 1935.
Trading places
While the trade show accompanying the festival offers its own excitement with beautiful women and well-dressed men showcasing uniquely Cuban humidors, antiques and other cultural items, the real draw is the seminars. Visitors can experience the International Habanosommelier Contest (think wine sommelier for cigars), as well as attend a master class on rolling cigars. There are also numerous lectures, and pairings of exclusive rums and brandies with cigars.
The rolling class is one of the most popular seminars. The class was led by master roller Arnaldo Ovalles, who had some help from rollers from Cohiba’s famed El Laguito factory who strolled the floor. Attendees were taught how to roll a Corona Gorda vitola, which is the third most popular Cuban vitola, behind only the Mareva and Robusto sizes, according to Ovalles. Each participant is given all of the ingredients they need to roll said cigar: a cutting board, a chaveta, glue and tobacco for the filler, binder, and wrapper. Visitor George Cassels-Smith, CEO of U.S.-based Tobacco Technologies Inc., rolled one of the better cigars. “It’s not bad,” he said of his slightly crooked smoke with a satisfied grin.
There was also a session on the history of the Quai D’Orsay cigar, “The Quai D’Orsay Brand—Then and Now.” Leading the lecture were journalist Yves Belaubre; Antoine Bathie of Seita, the former French distributor of Cuban cigars; Jose Maria Lopez Inchaurbe, strategic marketing director of Habanos SA; and Carlos Ferran, international marketing supervisor of Habanos.
In 1973, the Quai D’Orsay cigar was born out of the lack of a quality French-only cigar and the strong bond between the French and Cuban people. It was the first regional division of Habanos SA (then Cubatabaco). There are different stories as to what the Quai D’Orsay name refers to. One is that it refers simply to the famous Paris avenue of the same name; another suggests it refers to the French foreign ministry located on it. Both are true, according to Bathie, whose father was instrumental in the development of the Quai D’Orsay brand. “My father thought this would be a good name for a cigar to be presented at events like state dinners,” said Bathie.
An interesting addition to this year’s lecture series was named “The Art of Combination (the wrapper, the binder and the filler),” which was all about how the three parts of a cigar meld together to form the final product. Industry experts explained how a problem with one part can affect the entire smoking experience. Everyone was given one of four different cigars, each of which had something intentionally wrong with it, whether a twisted bunch, a draw that was too loose, poor construction issues or too much of one type of tobacco. Each person was then asked to smoke their sample and report back on what they thought was wrong with the cigar. The experts then explained what was wrong with the individual cigars and how they should have been constructed.
Cuban nights
The Habano Festival includes several interesting evening gatherings. With the exception of Monday’s opening evening event, which was waylaid by weather, Cuba put on quite the show. Free cigars, rum and the island’s stimulating nightlife come alive for the privileged attendees who managed to secure invitations. The closing gala event is hottest ticket in town, however. It’s hard to imagine something as spectacular outside of Las Vegas.
The El Laguito reception hall served as host to dinner on Wednesday night. It was dedicated to Quai D’Orsay. Guests experienced the brand’s three vitolas—Coronas Claro and the new No. 50 and No. 54—as well as a vitola from its historical portfolio, Quai D’Orsay Imperiales. Only 2,000 were made exclusively for this dinner. The event featured various musical performances, all choreographed by Cuba’s maestro Santiago Alfonso’s company.
The gala dinner paid tribute to the Montecristo brand and was held Friday evening at the Pabexpo center in the Miramar neighborhood in Havana. As part of the festivities, Habanos gave out samples of, among other cigars, the new Montecristo Linea 1935 in three different vitolas: Legend, Dumas and Maltes. This year’s celebration included performances by a number of different artists, including Haila, David Torrens, Diana Fuentes and A Otro Tiempo, as well as the Ballet de Lizt Alfonso, which celebrated its 25th anniversary last year.
Then there was violinist Ara Malikian and his ensemble. It was one of the most spectacular shows of the event. Malikian and his instrument danced across the stage with great enthusiasm and energetic force. Many of these artists left the stage and circled among guests. After dinner and the shows came to an end, Habanos handed out awards in three different categories: business, communication and production. Cuban grower Josefa Acosta Ramos took the top spot in the production category, while Edward Sahakian, a U.K.-based tobacconist, won in the business category. Gordon Mott, senior contributing editor for Cigar Aficionado, prevailed in the communication category. Chile’s Puro Tabaco, with its representative Felipe Rojas, was unanimously voted the winner of the 16th edition of the International Habanosommelier Contest. Judges said it was the closest competition yet. “It’s an honor like no other,” Rojas said.
Finally, the gala dinner and overall festival closed in a major way—with the famed humidor auction. This year’s auction got heated early as two bidders fought fiercely for the Cohiba humidor, for which Canadian bidder Leander Da Silva raised his numbered paddle with the highest winning bid of the night, €380,000 ($406,000). A few humidors exceeded the €250,000 mark, and by the end of the auction, seven one-of-a-kind humidors sold for more than $1.3 million. The money will be donated to the Cuban public health system.
As the event officially ended, we said our goodbyes to the festival’s talented media team, headed by Habanos’ director of marketing operations, Daymi Difurniao, which organized the event. We passed through the large Pabexpo doors one last time, walking back into the humid Cuban air. Hundreds of taxi drivers stood like paparazzi waiting to ferry exhausted attendees home. Luckily, we already had a driver waiting for us who wisely parked a few blocks away so we didn’t have to sit through the chaotic traffic in front of the convention center. The Habano Festival was an amazing experience. There is just something rare and special about Cuba. Much like its cigars, its people are vibrant, beautiful and genuine. Next year, the world’s finest cigar show should be even better.
Latest releases from Habanos SA, Cuba’s cigar monopoly
There were several new cigars announced during the 19th Habano Festival. The first Gran Reserva from the H. Upmann brand in the Sir Winston (47 x 178 mm) vitola (format), was one of the most promising releases. This is one of the brand’s most special cigars; it has additional aging of its leaves and is only in limited production.
Also exciting was the launch of Linea 1935 under the Montecristo brand. Three new vitolas are incorporated into the brand’s regular portfolio; these will become the most premium Habanos offered by Montecristo. Two of the three vitolas are unprecedented in the Habanos portfolio: Maltes (53 x 153 mm) and Dumas (49 x 130 mm), while Leyenda (55 x 165 mm) takes the form of the special limited-edition Montecristo 80 Aniversario, launched in 2015 to commemorate the brand’s 80th anniversary.
Typically a strictly French offering, the Quai D’Orsay brand is reinventing itself. It is doing so by launching a new design and presenting two new vitolas, with international distribution in the major markets of Habanos SA. The Quai D’Orsay No. 50 (50 x 110 mm) and Quai D’Orsay No. 54 (54 x 135 mm) vitolas come in both in 10- and 25-unit presentations. These will be added to the Coronas Claro (42 x 142 mm) vitola to create an attractive brand portfolio that will be available worldwide in 2017 through the Habanos international distribution network.
Habanos also released the new Romeo y Julieta Petit Royales (47 x 95 mm), a totally new vitola that is incorporated into the brand’s regular portfolio. With a heavy ring gauge and short length, this is a Habano in line with the current trend in formats increasingly demanded by enthusiasts around the world, according to Habanos SA.
There were also three limited editions announced during the festival: Cohiba Talisman (54 x 154 mm), Partagas Serie No. 1 (52 ring gauge x 138 mm) and Punch Regios de Punch (48 x 120 mm). – TSD
