Today (Sept. 3), Financial Times published investigative journalist Jack Adamović Davies’ article “The mystery tycoon, his fall from grace, and the Cuban cigar market”, detailing how a combination of aggressive price hikes and illicit corporate financing transformed the global Cuban cigar industry.
Davies centers the investigation on Chen Zhi, a Cambodian-Chinese tycoon who secretly acquired a massive stake in Cuba’s cigar marketing giant, Habanos, after Imperial Tobacco sold its share in 2020. Chen used his influence and Habanos’s prestige to build credibility among global elites, while Habanos drastically increased prices to target wealthy Asian buyers and boost revenues. However, Chen’s empire unraveled when U.S. and UK authorities sanctioned him for running vast transnational fraud operations, leading to his extradition to China in early 2026 and the liquidation of his business assets, including his Habanos holdings.
Beyond Chen’s downfall, Davies highlights how Cuba’s tobacco monopoly is now facing severe long-term fallout. Decades of underinvestment in production, coupled with skyrocketing prices and recent geopolitical blockades, have alienated traditional cigar enthusiasts. As a result, retailers and consumers are increasingly turning to modernized “New World” competitors in the Dominican Republic, Nicaragua, and Honduras, threatening Cuba’s historic dominance in the cigar trade.
