Category: Cigars

Habanos Cancels 2022 Cigar Festival

Photo: Habanos
The 2022 Habanos Festival has been officially canceled for the second year in a row.
“Habanos S.A. has been working to celebrate the 23rd Habanos Festival scheduled for February 2022, but we are forced to cancel said celebration due to the new epidemiological situation of the coronavirus in the world,” the company wrote on its website.
Instead, Habanos plans to treat its fans to the Habanos World Days, a virtual event that allows premium tobacco aficionados to share experiences and enjoying the rich culture that surrounds this exclusive handcrafted product.
This virtual meeting debuted in 2021 with more than 9,000 aficionados from over 140 countries, 200 media outlets and more than 75,000 visits for three days. The program included a visit to the Habanos virtual stand featuring a special Humidor designed in commemoration of Cohiba’s 55th anniversary. During the event, Habanos unveiled the nominees for the prestigious Habanos 2020 Awards, which recognize outstanding personalities for their work in the categories of Communication, Business and Production; and the winning aficionados for the online version of the Habanos World Challenge International Contest, which measures general Habano knowledge in its various stages of the process, from cultivation and production to enjoyment.
The Habanos Festival highlights Cuba’s cigar culture, with farm visits, factory tours and product samplings along with lavish entertainment.
Read Tobacco Reporter’s review of the 2020 Habanos Festival here.
January 11, 2022
Procigar and InterTabac Extend Partnership

Photo: alekosa
The long-term partnership between Messe Dortmund and Procigar, the Association of Dominican Cigar Manufacturers, has been extended. The aim is to build on and grow the close partnership and teamwork of recent years.
“What we have here is a unique partnership between the world’s biggest and best trade show in the tobacco sector and the world’s leading cigar exporter,” said Hendrik Kelner, Progicar’s president, in a statement. The principal objective of the Association of Dominican Cigar Manufacturers is to promote and defend the quality and consistency of Dominican cigars across the world. Only a globally recognized platform like InterTabac can be contemplated for this key task.”
Procigar was founded in 1992 as an association of cigar producers in the Dominican Republic. Since 2008, Procigar has organized the annual Procigar Festival attracting more than 400 international guests, importers, wholesalers and retailers as well as tobacco industry suppliers and employees.
The InterTabac trade exhibition will take place Sept. 15-17, 2022.
January 11, 2022
Cuba Tobacco Area Down Due to Shortages

Photo: Ingo Bartussek
Cuba will reduce the tobacco planting area by about 10 percent in the 2021-2022 season due to a lack of supplies, reports Market Research Telecast.
According to Granma, the official newspaper of the Communist Party of Cuba, only 22,550 hectares out of the initially planned 25,000 hectares have been planted with tobacco this season.
Farmers in Pinar del Río, which typically accounts for 65 percent of the island’s tobacco production expect to plant only 13,921 hectares this year—the smallest area dedicated to tobacco in the province over the past decade.
Meanwhile, rains from Hurricane Ida last August and resource constraints have delayed the planting of some 3,000 hectares until January, beyond the optimal time.
Cuba’s tobacco exports reached $507 million in 2020, according to Habanos, which markets Cuba’s renowned cigars.
The sector employs some 200,000 workers on the island, rising to 250,000 at the peak of the harvest.
December 27, 2021
Chinese Investors Eye Dominican Tobacco

Photo: alekosa
Chinese investors are negotiating to purchase leaf tobacco from the Dominican Republic, a development that could significantly boost exports from the Dominican Republic, reports The Dominican Today.
The Dominican Republic is already the world’s leading exporter of cigars.
Local industry representatives indicated that the Chinese investors are interested in the Olor Dominicano variety, which the large international cigar companies operating in the country use to manufacture their best blends.
The Dominican Republic exports cigars to 142 countries, according to José Guillermo López, a board member of Asociación de Desarrollo de la Provincia Espaillat.
López said the country has sufficient lands to expand tobacco cultivation. “We have the land capacity to plant four or five times more than what is being planted, without counting the potential of the south.”
The south’s problem of water shortages, he added, has been solved by investments in irrigation canals.
December 1, 2021
STG Takes Stake in Cigar Manufacturer

Photo: STG
Scandinavian Tobacco Group (STG) has acquired a majority stake in Moderno Opificio del Sigaro Italiano (MOSI), a cigar company with approximately 40 employees and production facilities in Orsago, Italy.
MOSI was founded in 2013 by Cesare Pietrella. The company produces high-quality traditional Italian machine-rolled cigars with a blend of Italian and American Kentucky tobaccos grown on plantations in Northern Italy and in the United States. With a small exclusive offering under the brand Ambasciator Italico, MOSI has gained a market share of approximately 9 percent in Italy for traditional machine-rolled cigars.
“We are excited about this acquisition,” said Jurjan Klep, senior vice president of the Europe branded division in STG, in a statement. “With a majority stake in MOSI, we are acquiring modern cigar-making craftsmanship and a premium brand that will increase our offering to our consumers and the opportunity to take further market share in an important market. This is our fifth acquisition since 2016, and I look forward to further cementing our proven track record of creating value from acquisitions of brands and businesses.”
“Together with Scandinavian Tobacco Group, MOSI and Ambasciator Italico are well positioned for growth, and the acquisition will invigorate the Italian cigar market and benefit Italian cigars smokers, customers and tobacco farmers,” said Cesare Pietrella, founder and president of MOSI.
In related news, STG has restructured its Canadian division, integrating it into its U.S. operations, according to a report by Halfwheel.
Gene Richter, vice president of sales for STG North America, will oversee the Canadian sales team as well as General Cigar Co., Forged Cigar Co. and STG Lane. Cole Patton, with a new role as national sales manager for North American mass market strategic accounts, will oversee the U.S. and Canadian mass market businesses. Mike Restivo, national sales manager of regional accounts for STG Lane, and Jennifer Goodwin, national sales manager for south/west STG Lane, will report to Patton. Marc Rheaume, vice president of sales for STG Canada, left the company.
“We brought these two business units together to deliver untapped growth opportunities,” said Regis Broersma, president and senior vice president of STG’s North America branded and rest of the world division. “Under the new structure, we will work together to capture increased market share while demonstrating an ongoing commitment to building both our Canadian and U.S. businesses.”
November 18, 2021
U.S. Cigar Association Hires New President

Photo: Olena
The Cigar Association of America (CAA) has hired a new president.
David Ozgo will be the new president of the CAA, marking the third change in leadership over 30 years. Ozgo was senior vice president of economic and strategic analysis at the Distilled Spirits Council (DISCUS) for 20 years. Ozgo takes over from longtime CAA President Craig Williamson, who last year announced his retirement.
“David has demonstrated the ability at DISCUS to develop data-driven solutions to industry issues, to successfully deliver the industry’s message in different forums and mediums, and to work constructively with various segments of an industry whose members vary greatly in size and product portfolio. These are precisely the skills CAA and the cigar industry need to navigate through current and upcoming regulatory and legislative challenges” said Javier Estades, chairman of the board of the CAA and president of Tabacalera USA, in a statement.
Ozgo said he “couldn’t be more excited to work in such an outstanding industry, one with issues and opportunities similar to those in the distilled spirits industry and with such a strong association. I’m honored and humbled by the board’s confidence in me.”
Estades also praised Williamson, saying “in almost two decades with CAA, the last 10 years as president, he has been a tireless advocate for the entire cigar industry. Many of our industry’s successes have resulted from his hard work; we are grateful for his dedication and wish him well in the future.”
Ozgo will assume his position on Dec. 6.
November 17, 2021
Tropical Oasis: Costa Rica’s La Casa del Habano

Photo: Timothy Donahue
Cigars have been selling at a steady pace through the pandemic at Costa Rica’s home for Cuban cigars.
By Timothy S. Donahue
Cuban cigar sales at the La Casa del Habano (LCDH) in Costa Rica grew in 2020 compared to the previous year. The shop’s manager, Beatriz Ramirez, said sales in 2021 are now on pace to surpass 2020. “People have had more time to enjoy quality cigars,” she told Tobacco Reporter during a recent visit to the country’s capital, San Jose. “We were concerned at the beginning when businesses began to close because of Covid-19, but our sales remained steady and even surpassed 2019.”
Located just down the street from the U.S. Embassy (approximately 250 feet east), Costa Rica’s LCDH franchise opened its doors in 2011. The shop is owned by the Cruz Canela Group, which is the exclusive distributor of Habanos S.A. in Costa Rica and Nicaragua. The shop is operated by general manager Luis Garcia Cruz (who happened to be out of the country on business during our visit). Ramirez explained that the shop is an old, classic-style former home in the popular neighborhood of Rohmoser (Pavas).

Inside the doors are two large classic Cohiba branded humidors just before the doorway to the shop’s large humidor filled with several popular Habanos brands and vitolas, including Cohiba, Montecristo, Partagas, Romeo y Julieta, H. Upmann, Hoyo de Monterrey, Trinidad, Bolivar, Ramon Allones, La Gloria Cubana, Punch, Fonseca and several others. Just across the hall from the humidor is the checkout area with several glass display cases. The room also has a small spiral staircase that leads to offices upstairs.
“La Casa del Habano provides all of our customers the comfort and personal attention that should be expected from Habanos and LCDH,” said Ramirez. “Here you can find the largest selection of Habanos throughout Costa Rica as well as accessories, such as cutters, lighters, ashtrays and even some very beautiful humidors.” There is also a book on the history of Habanos as well as hats and other merchandise for sale.
LCDH is more of a home away from home for cigar smokers than your typical cigar shop. The Costa Rican shop has two separate lounge areas for customers to conduct a business meeting, relax with the daily paper or swap stories of worldly adventures with other visitors. Just past the humidor is a room set in an imitate space for smoking, furnished with relaxing lounge chairs and a large comfortable couch.

“We try to offer a variety of space for the comfort of our guests. We have had celebrities, politicians and many leaders in the community come together here to conduct business or to just socialize,” explains Ramirez. “We also provide many services beyond our excellent cigars to make our clients comfortable and welcome in the best environment for enjoying Cuban cigars from Habanos.”
A short hallway that houses two large H. Upmann branded humidors then opens into a larger room with several tables and couches with a bar in the corner that offers liquor, wine, beer, amazing coffee and even some Costa Rican chocolates. Guests are encouraged to order food from one of the many surrounding restaurants and have it delivered to LCDH to enjoy. The walls of LCDH are adorned with several works of art depicting both Cuban and Costa Rican life. There is also a small outdoor courtyard for clients to enjoy.

Habanos released an exclusive regional edition cigar in Costa Rica in 2020. Called the Pura Vida (a statement that describes several things in Costa Rica and has been adopted as the country’s motto), the San Luis Ray is a Magnum 54 and measures in at 54 x 120 mm (4 3/4 inches). Only 6,000 of the 10-stick boxes were produced. The cigar is medium bodied with a honey and floral start, with hints of vanilla and creaminess throughout. We also sampled the Hoyo de Monterrey Epicure No. 1. The Coronas Gordas measures 143 mm in length by a 46 ring gauge (46 x 143 mm). The cigar began with strong notes of cedar and followed with notes of toasted cinnamon, nutmeg, mint and a touch of sweetness.
Costa Ricans (Ticos) use the term “Pura Vida” to say almost everything from hello to goodbye to everything’s great or even just so-so. It’s all about the tone. Pura Vida is the way Ticos live. If ever visiting in Costa Rica, LCDH in San Jose is a necessary stop. The quality of cigars and customer service are unparalleled in the region. More than that, LCDH embodies all that is Pura Vida.
Timothy Donahue is the assistant editor of Tobacco Reporter. Since joining our team in January 2013, he has become not only an expert on the traditional tobacco business but also a well-respected voice in the rapidly developing vapor industry. Tim spends much of his time on the road, attending conferences and interviewing industry representatives. His networking skills, work ethic and quick mind are valuable assets to our diverse audience.

November 11, 2021
Cuba Starts Planting for 2021-2022 Season

Photo: Habanos
Cuba will kick off its 2021–2022 tobacco growing season by planting of 25,000 hectares this Sunday, reports Market Research Telecast, citing the state company Tabacuba.
Some 13,800 producers are expected to harvest 27 million kg of tobacco this season.
Farmers in the country’s leading tobacco growing area, Pinar del Rio, will plant 16,373 hectares, including 760 hectares covered by cloth for the production of Cuba’s famous Havana cigars.
In addition, growers in Pinar del Rio will plant 510 hectares of flue-cured Virginia leaf for a cigarette factory in the neighboring Artemisa province.
Cuba’s tobacco sector has been struggling with a shortage of inputs due to the Covid-19 pandemic and the continuing U.S. trade embargo.
October 11, 2021
Estades Re-Elected as Cigar Association Chair
Javier Estades (Photo: Tabacalera USA)
Javier Estades, president and CEO of Tabacalera USA, has been reelected as chairman of the Cigar Association of America (CAA) for a three-year term. Estades previously served as chairman from 2016 to 2020.
“Javier Estades has always just been one of those people who gets it,” said CAA President Craig Williamson in a statement. “When he stepped down as chairman, I said that we would miss his leadership, affable demeanor and steady hand, and now I am thrilled to welcome Javier back as our chairman once again.
“Challenges remain ahead for our industry, but with Javier’s leadership and our continued commitment to speaking as one voice for the cigar and pipe tobacco industry, I know we will navigate the days, months and years ahead successfully.”
“It was an honor to serve as chairman of CAA, and I am excited to once again join my partners in industry to lead this century-old association,” said Estades. “We continue to face a perfect storm of regulatory intervention, increasing tax burdens and evolving industry trends. We will have to join together to preserve our industry for future generations.”
October 4, 2021
Swedish Match to Spin Off Cigar Business

Photo: Swedish Match
Swedish Match intends to separate its cigar business via a spin-off to shareholders and to completely exit the manufacturing of combustible tobacco products. Swedish Match has initiated preparations for a separation and a subsequent listing on a major U.S. securities exchange, with a final decision on execution subject to various considerations. The separation is expected to be completed during the second half of 2022 at the earliest.
Swedish Match started transforming its business model two decades ago with the divestiture of its cigarette business in 1999. Later, it spun off its pipe tobacco, premium cigars and its non-U.S. machine-made cigar businesses. Going forward, smoke-free products such as nicotine pouches and snus will play the leading role in building a stronger company in line with societal trends, the company explained in a press note.
According to Swedish Match, the intended separation of the cigar business provides even greater focus on building the company’s presence in the growing modern oral category while also providing opportunities and greater flexibility for the standalone cigar business to execute its own strategic plans toward delivering strong value as an independent company. “As a standalone company, the cigar business will be able to explore a broader scope of growth opportunities and to optimize its operational setup and capital structure, among other benefits,” Swedish Match wrote.
According to Swedish Match, the cigar business has solid positions in both the natural leaf and homogenized tobacco leaf segments of the U.S. mass market cigars category and holds the No. 2 market position with approximately 23 percent of the market measured by number of sticks. Since 2015, volumes have grown at a compounded annual rate of close to 10 percent from more than 1.2 billion sticks to more than 1.9 billion sticks in 2020, driven by robust growth for natural leaf varieties. During the same period, revenues have also grown by close to 10 percent on a compounded annual basis from $313 million to $493 million, while operating profit has grown by 54 percent to $195 million. During the first six months of 2021, compared to the same period of 2020 and measured in local currency, sales grew by 25 percent as a result of improved pricing and double-digit volume growth, and operating profit increased by 44 percent.
The natural leaf cigar portfolio includes such iconic brands as Garcia y Vega, Game and 1882, while its White Owl brand of HTL cigars is recognized nationwide for its quality and heritage. Its portfolios of both nonflavored and flavored cigars are among the broadest in the industry. The business has efficient and modern manufacturing presence in both the U.S. and in the Dominican Republic.
In addition to its cigar business, Swedish Match operates its Smoke-free and Lights product segments. For the full-year 2020, the Smoke-free and Lights product segments reported combined revenues of SEK11.8 billion and combined operating profit of SEK5.36 billion. Measured in constant currencies, sales and operating profit for these segments combined grew by 21 and 32 percent, respectively, for the full-year 2020. For the first six months of 2021, these segments combined reported revenues of SEK6.4 billion and operating profit of SEK3.06 billion. Measured in constant currencies, sales and operating profit for these segments combined grew by 20 percent and 30 percent, respectively, during the six-month period. Growth continued to be driven by the strong momentum for nicotine pouches. In the U.S., the ZYN brand of nicotine pouches is the clear market leader and has enjoyed tremendous growth, with volumes exceeding 140 million cans for the 12-month period ending June 30, 2021.

This announcement is another milestone toward achievement of our aspiration to become an entirely smoke-free organization.
Lars Dahlgren, president and CEO, Swedish Match
“This announcement is another milestone toward achievement of our aspiration to become an entirely smoke-free organization with a clear leadership position in oral reduced-risk products, including ZYN, the largest modern oral brand in the U.S. and globally,” said Lars Dahlgren, president and CEO of Swedish Match. “The cigar business continues to perform very well and is seeing positive industry dynamics, which we believe will make it an attractive standalone company, balancing strong cash flow generation with attractive growth.
“The new cigar company will have the ability to explore a wider scope of growth opportunities within its autonomous and focused strategic agenda and to establish efficient and tailored operational and legal structures geared for long-term value creation.
“Subject to market conditions, we expect that the new standalone cigar business, with its strong cash flow profile, could be capitalized at a higher level of leverage than has been the case for Swedish Match historically, which would create the opportunity for Swedish Match to use financing proceeds upon separation to further enhance shareholder returns. Until a separation is complete, Swedish Match will continue to operate as a single company and will continue business as usual for our customers and employees.”
Following the potential separation of the cigar business into a new standalone company, Swedish Match expects to provide commercial and administrative support to the new standalone entity during a transitional period. The completion of the intended separation, the resulting structures and other related considerations are subject to final board and shareholder approvals, a thorough review of market and other business conditions, required documentation and other customary and necessary approvals and consultations.
Goldman Sachs is acting as exclusive financial advisor to Swedish Match on the intended spin-off of its cigar business.
September 15, 2021