Tag: Cuba

  • Rafael Targets Cuba’s Tobacco Regions

    Rafael Targets Cuba’s Tobacco Regions

    Image: lavizzara

    Cuba’s leading tobacco-producing regions were expected to take a direct hit as Hurricane Rafael slammed into the island’s southwest shore on Nov. 6, packing sustained winds of 185 kph, reports Reuters.

    Farmers in Artemisa and Pinar del Rio provinces had moved to protect 8,000 metric tons of tobacco in the area, according to Agriculture Minister Ydael Pérez Brito, as well as ripening fruits and vegetables.

    The U.S. National Hurricane Center warned of a “life-threatening storm surge, damaging hurricane-force winds and flash flooding” across much of western Cuba. The region, including Havana, remained under a hurricane warning.

    Cuba’s state-run grid operator said the high winds had caused the country’s electrical system to collapse. State-run television reported the entire population of 10 million people was without electricity—the second such incident in less than a month on the island.

    The hurricane is the latest blow to the country’s already precarious grid and infrastructure. Cuba’s obsolete oil-fired power plants reached a full crisis this year as oil imports from Venezuela, Russia and Mexico dwindled.

  • Habanos Presents 2024 Upmann Magnum Finite LE

    Habanos Presents 2024 Upmann Magnum Finite LE

    The launch of the H. Upmann Magnum Finite Limited Edition 2024 vitola took place in one of the most iconic locations in the Spanish capital—the arches and inner gates of the Las Ventas bullring, a space filled with charm, history and culture.

    Habanos S.A., the distribution arm of Cuban cigars, together with its partner and exclusive distributor for the Spanish market, Tabacalera S.L.U., presented the new vitola at the event organized by the Club Pasion Habanos under the name El ruedo de H. Upmann.

    “The H. Upmann Magnum Finite Limited Edition 2024 (53 ring gauge x 130 mm length) stands out not only for its elegance but also for its exclusivity. It is a vitola designed for aficionados seeking a unique and sophisticated experience, combining the heritage and brand’s tradition, its refined Habanos, with a light to medium strength, and the characteristic aging of at least two years for limited editions,” a Habanos release states. “H. Upmann Magnum Finite is the result of a meticulous crafting process, using wrapper, filler and binder leaves from the Vuelta Abajo plantations, where the world’s best tobacco is produced, in Pinar del Rio region, Cuba.”

    Magnum Finite comes in an exclusive box of 25 units. The flavor is creamy, woody, toasted and earthy with vegetal and mineral hints, ripe fruit, sweetness and light spices, leaving a finish of hay, smoked cedar, damp earth, moss, iodine hints, dried plum, vanilla, nutmeg and molasses.

    Its aroma is tobacco, woody, toasted, herbal, ripe fruit, spicy and sweet, smoked cedar, leather, raisin, coffee, cocoa, clove, vanilla and molasses.

  • Habanos Celebrates 30th Anniversary

    Habanos Celebrates 30th Anniversary

    Habanos of Cuba celebrates its 30th anniversary this month. Founded Sept. 14, 1994, the company has established itself as a benchmark in the worldwide promotion and sales of Habanos, which are considered by many to be the best handmade cigars.

    With a presence in over 130 territories across five continents, Habanos boasts a portfolio of 27 premium cigars, including iconic names such as Cohiba, Montecristo and Partagas. Since its creation, the company has tripled its consolidated turnover.

    Every year since 1999, the company’s Habano Festival, attracts distributors, aficionados and celebrities from around the world. The event has evolved into a key platform for presenting new products, exchanging ideas and celebrating activities and experiences related to the Habano culture.

    Meanwhile, the La Casa del Habano franchise network has expanded to more than 155 boutiques in over 60 countries.

    “Over the past 30 years, we have traveled a path filled with tradition, passion and dedication, bringing the Habano to over 130 territories and solidifying our position as leaders in the premium tobacco industry. All of this has allowed us to reach a record revenue figure of $721 million in 2024,” wrote Habanos Copresidents Maritza Carrillo Gonzalez and Luis Sanchez-Harguindey in a joint statement.

    “However, beyond the numbers and achievements, what truly defines us are the relationships we have built. Each satisfied customer represents a shared success, and we are grateful for their loyalty and support over the years. Today, we celebrate the past, but we also look to the future with the same entrepreneurial spirit that has guided us here.”

  • Biden Rolls Back Bank Restrictions for Cuba

    Biden Rolls Back Bank Restrictions for Cuba

    TR Archive

    Accessing the global banking system just got easier for many of Cuba’s privately owned tobacco farms. The U.S. lifted some financial restrictions against the island country on Tuesday, in a move designed to boost private businesses.

    The measures will allow independent entrepreneurs to open and access U.S. bank accounts online to support their businesses. They also include steps to open up more internet-based services and expand private companies’ ability to make certain financial transactions.

    “These regulatory amendments update and clarify authorizations in support of internet-based services to promote internet freedom in Cuba, support independent Cuban private sector entrepreneurs, and expand access to certain financial services for the Cuban people,” the Treasury Department said in a news release.

    One of the key changes will allow Cuban private business owners to open bank accounts in the United States and then access them online once back in Cuba — something they couldn’t do previously. The U.S. also is again allowing something called U-turn transactions, where money is transferred from one country to another but is routed through the United States.

    “This reinstated authorization is intended to help the Cuban people, including independent private sector entrepreneurs, by facilitating remittances and payments for transactions in the Cuban private sector,” the release said, according to the Associated Press.

    The Trump administration had removed permission for the U-turn transactions in 2019.

    The Cuban authorities downplayed the announcement. Johana Tablada, deputy director of the U.S. department in the Cuban Foreign Ministry, said the steps were “limited” and will do little to ease the embargo or sanctions that have most hurt the Cuban people.

  • Caribbean Habanos Days in St. Maarten

    Caribbean Habanos Days in St. Maarten

    Credit: Reimar

    The fourth annual Caribbean Habanos Days was held on Sint Maarten from May 17 -19. Sponsored by Habanos S.A. and Caribbean Cigars Corporation N.V., the Cuban cigar distributor for the Caribbean and Central America, the event attracted nearly 200 attendees from 19 countries.

    Activities included a cigar-rolling demonstration by torcedor Jose Castelar “Cueto” Cairo. The 80-year-old cigar roller is best known for rolling the Guinness World Record cigar, which is 295 feet long and was rolled to commemorate Fidel Castro’s 90th birthday in 2016 (he’s broken the record several times since). After his presentation, patrons participated in rolling their own cigars.

    The first day culminated in an evening cocktail party featuring music by Yuyo Herrera. The evening celebrated brands including Cohiba, Montecristo, Trinidad, Partagas, Romeo Julietta, Quai Dorsay, La Gloria Cubano, and El Rey Del Mundo, according to an emailed press release.

    On day two, attendees could take a land tour or a boat cruise.

    The event closed with a Gala Dinner party held at The Morgan. Montecristo cigars, along with special Montecristo lighters and cutters, were presented throughout the evening. After the dinner, attendees participated in a premier humidor auction, featuring two hand-crafted humidors created by Cuban artisan Ernesto Aguilera Reina.

    Gary Heathcott, director of Cuba Films, conducted the auction. The event raised $75,000 that will be donated to Cuba’s Public Health system for Children’s Cancer Research.

  • Cuban Origin Ruling Final: Court

    Cuban Origin Ruling Final: Court

    Image: fottoo

    The German Federal Court of Justice has ruled that the use of geographical terms of origin “Cuba” and “Habana” and their derivatives “for tobaccos of other origins are inadmissible,” according to Habanos.

    An appeal has been dismissed, and the judgment previously made by the Munich Higher Regional Court ruling that the terms are inadmissible for tobaccos of other origins is final. No further appeals are possible.

    The lawsuit was in response to “unauthorized” and “misleading” use of terms such as “Habano Seed,” “Piloto Cubano,” “Habano Wrapper,” “Ecuadorian Habano Wrapper,” “Ecuadorian Habano Seed Wrapper,” “Cubra—the noble fire of Cuba: Criollo” and “Binder Habano Jalapa—Nicaragua” for non-Cuban tobaccos. The suit questioned whether geographical indications like Cuba and Habana and derivatives could be used for cigars from other geographical regions, especially if the origin is “delocalized” and indications of such, like Ecuador and Nicaragua, are used.

    Corporacion Habanos took legal action in 2020 against the misleading nomenclature.

    The Regional Court of Munich upheld the claim in full, and the Higher Regional Court of Munich dismissed the appeal from the defendant. The Federal Court of Justice has now rejected a final appeal, which was based on points of law not accepted by the Higher Regional Court of Munich.

    According to both courts, use of these geographical terms deceives consumers and undermines the reputation of the geographical locations. By using the disputed terminology, one of the courts found, the defendant took advantage of the protected appellations of origin and their reputation to “transfer the concept, image and prestige” to products of other origins.

  • Tobacco Product Prices Up in Cuba

    Tobacco Product Prices Up in Cuba

    Credit: Timothy S. Donahue

    Beginning on April 12, Cuban tobacco users experienced higher retail prices for cigarettes and cigars. The brands are the domestic tobacco products sold in local stores used by Cuban residents, not tourists.

    According to the report, the prices of cigarette-style brands like Criollo, Titanes, and Popular are now CUP 30 ($1.25) per pack of 20. H. Upmann Clásico, a short cigar sold with and without filters, is CUP 50, and Popular Auténtico is now CUP 60. (It should be noted that an American dollar on Cuba’s black market averages about CUP 300 to $1; this would put the price of a 20-pack of Populars at about $0.10.)

    Minister of Finance and Prices, Vladimir Regueiro, told Cuban media that the current cost does not cover all the costs and expenses related to the production and commercialization of the tobacco products.

    In a press conference, he added that the measure would “contribute to reducing the fiscal deficit in the country, and new financial resources may be mobilized from the state budget to support the social expenses of priority sectors.”

    He also said that tobacco is not a necessity for the population and that the responsibility of the State and the government is to guarantee an appropriate level and assortment of food products.

  • Breaking Through Barriers

    Breaking Through Barriers

    Photos: Timothy Donahue

    Cuba’s cigar industry is on the road to recovery after several challenging years.

    By Timothy S. Donahue

    The Cuban cigar industry made huge profits last year, but it wasn’t because it produced more cigars. While the impacts of the pandemic, the weather and the scarcity of almost everything are overwhelming, the Cuban people and its tobacco industry are finding ways to endure. The cigar industry mirrors the country as a story of overcoming adversity and sowing the seeds of a hopeful new beginning.

    When Hurricane Ian’s winds began to howl in September 2022, they caused significant damage in the Pinar del Rio region, Cuba’s most prominent tobacco-producing province. The storm eviscerated crops and flattened 90 percent of the tobacco curing barns and other farming infrastructure needed to grow tobacco. The destruction came on the heels of the Covid-19 pandemic, which had already brought the worst economic suffering Cuba had seen in decades.

    Recovery has been slow, but Cuba has endured. While this year’s tobacco crop is the worst in the written history of the island’s tobacco crops, Cuba’s newspaper, Granma, reported earlier this year that 4,776 barns have been rebuilt, and another 620 are being completed. Luis Sanchez-Harguindey, co-president of Habanos, the state-run global distributor of Cuban cigars, said during a press conference at the 24th annual Festival del Habano that Cuban growers had also focused resources on their most efficient, volume-producing farms.

    “This growth factor has also been due to the enhancement of all the supply chains and the great effort done by Tabacuba, the producers, the tobacco growers, who, after the pandemic and the hurricane, have been increasing production,” he said. “We have a better group of products [we now can produce]. And these products that we offer, of course, do not satisfy the demand for the products yet.” He explained that the combination of increased demand and lower supply has been one reason for this year’s record growth.

    As the 2023–2024 growing season closed, a representative of Grupo Empresarial Tabacuba—the state-run company charged with managing the production of Cuban tobacco and cigars—told Tobacco Reporter that only two-thirds of the pre-hurricane tobacco hectarage was used for tobacco cultivation this season. Tabacuba said it reduced its targeted goals for the 2023–2024 harvest from the planned 12,905 hectares to 10,200; however, the amount of land used to grow tobacco is expected to return to pre-hurricane levels for the 2024–2025 season.

    “Today, we have a great [percentage] of this infrastructure operating at 100 percent. This has been possible because we quickly had all the necessary resources to build a workforce, a specialized labor force that can rebuild everything that had been destroyed,” Sanchez-Harguindey said. “There are still some minimally damaged areas. It is mainly issues related to construction [acquiring supplies]. Tabacuba has a policy to concentrate production with tobacco growers that traditionally produce higher yields and better quality. This has been possible during the year 2023. The impact, the result of all this work, is unprecedented growth in revenues over 2022.”

    Getting a Boost

    Sanchez-Harguindey said that while the farms produced less tobacco in 2023, Habanos achieved a major increase in the value of its cigars due to a new pricing structure and successful promotions of exclusive brands such as Trinidad and Cohiba. “We’ve been able to compensate for that reduction in volume with value,” he said.

    Habanos earned revenues of $721 million in 2023, up 31 percent compared to the previous year. Last year, the company generated $545 million in revenue, nearly 2 percent more than in 2021. “This is a year of records,” Sanchez-Harguindey said at the Festival del Habano, which took place Feb. 26—March 1.

    The company’s products are available on five continents. During 2023, the markets that contributed most to Habanos’ sales volume were Spain, France, China, Germany and Switzerland. Habanos is owned 50 percent by the Cuban government and 50 percent by a consortium of Asian investors under the umbrella of companies called Allied Cigar Group, which is rumored to be majority-owned by HuaBoa, a major Chinese tobacco flavoring company. By region, Europe remains the leading market for Habanos, accounting for 56 percent of total sales value, followed by Asia (21 percent), the Americas (13 percent) and Africa and the Middle East (10 percent).

    In 2023, the company launched 31 new products, including Cohiba Siglo de Oro, Cohiba Ideales, Romeo y Julieta Cupidos, Hoyo de Monterrey: Monterrey No. 4, and Bolivar New Gold Medal. With its 27 marcas and a presence in more than 130 countries, Jose Maria Lopez Inchaurbe, vice president of development for Habanos, credited the company’s success to “excellence, tradition and innovation.” A more obvious answer for the revenue jump is the boost in Cuban cigar prices globally. Habanos, said Lopez Inchaurbe, has transformed the Cuban cigar into a luxurious, high-end smoke in global markets, especially in China.

    During the media portion of the festival, several reporters asked for clarification of Habanos’ revenues. Andrea Rodriguez, from the Associated Press, questioned how revenues went from 2 percent in 2022 to 30 percent this year. Lopez Inchaurbe said that there are different reasons to justify the growth. He said, “It’s a reality that after the pandemic, both the luxury market and the consumption of premium goods around the world have been increasing considerably,” and that demand has been global.

    Lopez Inchaurbe said that the company also positioned its “super-premium” segment (Cohiba and Trinidad) more prominently and promoted the brands heavily in markets where luxury cigars are in greater demand. There has also been an increase in limited-edition cigar releases. “In the year 2023, we have launched 32 new products, nine of them in the premium standard category, which is the permanent portfolio of Havana, and 22 of them are in the concept of specialties,” he explained.

    In 2022, Habanos announced a new “global pricing standard,” which massively increased the prices of Cuban cigars worldwide. The company has already announced at least two additional price increases for 2024. The price increases have significantly impacted the costs of Cuban cigars. Five years ago, the Cohiba Siglo IV, the flagship of the Cohiba brand, cost less than $60 a stick. Today, the cigar costs nearly $400 a stick in most markets. However, not all markets are treated equally.

    Store shelves in Cuba were not heavily stocked during Tobacco Reporter’s visit. Finding large-ring-gauge cigars or anything with a Cohiba or Trinidad label was also difficult. Many local cigar shops in Havana said that they had not received shipments in more than a year, and some La Casa del Habanos (LCDH) locations said that it had been at least nine months since they had a cigar delivery. For the festival, however, every shop seemed to have received shipments of varying vitolas and marcas. Many shops had the new Romeo y Julieta Cupidos, 20 for $1,600, and boxes of the new Cohiba Siglo de Oro, priced at $4,500 for 18 sticks ($250 each).

    An interesting, unusual occurrence was the introduction of a new POS system for payments during the festival. This system now allows Americans to purchase Cuban cigars (for consumption while on the island) with their U.S.-based credit cards, which has long been impossible. However, it is unclear whether this is a coincidence or if it was a permanent addition to the Cuban payment system. Tobacco Reporter was told that the new payment system is currently being used in only two of the LCDH stores in Cuba; however, it is expected to expand to all LCDH locations.

    The Featured Event

    In the past, registration for the Habanos Festival opened months before the event. However, last year, registration opened a mere 40 days before the event, and this year, Habanos gave attendees only 27 days to register. Overall, this year’s festival was better than most. The entertainment was spectacular, and the cigars were the best in the world.

    Habanos celebrated several milestones this year, including the company’s 30th anniversary, the 50th anniversary of the Quai d’Orsay brand and the 55th anniversary of the Trinidad brand. Featuring an estimated 2,200 attendees and more than 200 journalists, the festival is where Habanos showcases its assets and previews a number of its major releases every year. The festival features multiple seminars, epic dinner events centered on various brands, and a trade show with over 200 exhibitors.

    Traditionally, Tuesdays are reserved for trips to Pinar del Rio, Cuba’s legendary tobacco-growing region. While many media attendees visited the famed Vegas Robaina farm, Tobacco Reporter visited a smaller farm in San Juan y Martinez, often called the “Mecca of tobacco.” The fields looked exceptionally healthy, with broad, green leaves. The curing barns had been freshly painted, and the workers seemed vibrant and plentiful. The barns were in the process of being filled.

    This year, attendees were also allowed to roll a cigar alongside professional rollers at one of five factories. It marked the first time the festival hosted its master rolling class in the same buildings where Habanos cigars are produced. Daymi Difurniao Rodriguez, communications and marketing specialist for Habanos, said that the venue change was to allow more attendees to learn firsthand about the “Totally by Hand” production process of a Habano.

    “I wanted the press to make their own Habano so they could understand the details and intricacies involved in creating the Habanos, the world’s finest cigars,” said Difurniao Rodriguez.

    The torcedor (cigar roller) who taught the El Laguito class was quality specialist Ana Isel Mederos Cano. She is also a nominee for the Habano Woman of the Year award in the production category for the festival. She has been at El Laguito for 25 years, 11 of them as a roller and the past 14 in her current position. “I love that I have been given this opportunity to teach the art of cigar rolling to the representatives of media from around the world,” she said.

    Visitors had the opportunity to visit the La Corona, Partagas, H. Upmann and Carlos Balino factories. El Laguito was for media only. La Corona has about 750 employees, 300 of whom are dedicated rollers. The rollers produce brands such as Hoyo de Monterrey, Montecristo, Cuaba, Diplomaticos and San Cristobal de la Habana.

    The H. Upmann factory produces H. Upmann, Montecristo, and Romeo y Julieta and several sizes of Cohiba. Partagas is one of Havana’s iconic factories, and Carlos Balino is the former El Rey del Mundo factory. The legendary El Laguito is home to Habanos’ premier marcas, Cohiba and Trinidad.

    As in previous years, the Gala Dinner takes place during the final night of the Habanos Festival. It includes the presentation of the prestigious Habanos Awards and the auction of several elaborate humidors. The proceeds from the auction are donated to the Cuban Public Healthcare System.

    This year’s auction included seven humidors, one for each of the company’s six global brands: Cohiba, H. Upmann, Hoyo de Monterrey, Montecristo, Partagas and Romeo y Julieta. Additionally, one humidor was dedicated to the 55th anniversary of the Trinidad brand. Eight lots were sold for a combined €17.8 million ($19.3 million), setting a record for the auction.

    The headliner for the festival’s gala dinner was none other than the Village People. As the crowd swayed to hits such as “YMCA” and “Macho Man,” the challenges of growing and selling cigars, and surviving in the country, could be forgotten for a while.

  • Habanos Announces Deal With Liquor Maker

    Habanos Announces Deal With Liquor Maker

    Credit: Creuxnoir

    Chinese liquor company Luzhou Laojiao and Cuban cigar company Habanos SA have signed a strategic agreement to jointly expand their markets.

    During the 24th Habano Festival in Havana, Cuba, Zhang Biao, general manager of Luzhou Laojiao, highlighted the similarities between Luzhou Laojiao’s liquor and Cuban cigars, noting that the cooperation will strengthen the commercial ties between China and Cuba.

    The agreement includes a joint product through co-branding, with the Chinese company handling the marketing. José María López, vice president of development at Habanos, said that this partnership is based on shared values ​​such as craftsmanship, quality and leadership, highlighting the “perfect match” between Chinese liquors and Cuban cigars.

    Habanos executives reported that China is one of the most dynamic markets for Cuban cigar sales. The country contributed heavily to a 31 percent increase in Cuban cigar sales in 2023, reaching a total of $721 million.

    The signing of the Memorandum of Understanding aims to explore new avenues of cooperation for both companies. Luzhou Laojiao, one of China’s oldest liquors, has been produced in the National Treasure Cellars since 1573, with distillation technology dating back 700 years.

    The collaboration will focus specifically on Luzhou Laojiao’s “Guojiao 1573” brand and Habanos Corporation’s Cohiba Atmosphere brand. In addition, seven Guojiao 1573 brand liqueurs were auctioned along with during the festival’s humidor auction, with the funds raised going to public health initiatives in Cuba.

    “This strategic agreement strengthens commercial ties between China and Cuba in the liquor and cigar industries,” according to a press release.

  • Cuba Festivalgoers Roll Cigars at Factories

    Cuba Festivalgoers Roll Cigars at Factories

    Ana Isel Mederos Cano (Photos Special to Tobacco Reporter)

    Activities during the 2024 Habanos Festival usually only vary slightly. However, this year, attendees were allowed to roll a cigar alongside professional rollers at one of five factories. It marked the first time the festival hosted its master rolling class in the same buildings where Habanos cigars are produced.

    Daymi Difurniao Rodríguez, communications and marketing specialist for Habanos, said that the venue change was to allow more attendees to learn firsthand about the “Totally by Hand” production process of a Habano.

    “I wanted the press to make their own Habano so they could understand the details and intricacies involved in creating the Habanos, the world’s finest cigars,” she said.

    The torcedor (cigar roller) who taught the El Laguito class was Ana Isel Mederos Cano, main quality specialist at El Laguito. She is also a nominee for the Habano Woman of the Year award in the production category for the XXIV Habano Festival currently taking place in Havana.

    She has been at El Laguito for 25 years, 11 of them as a roller and the past 14 in her current position.

    “I love that I have been given this opportunity to teach the art of cigar rolling to the representatives of media from around the world,” she told Tobacco Reporter.

    The venue change was a welcome addition, according to several festival attendees. A seasoned festival media participant, Nicholas Syris of LH Cigars and several cigar podcasts, who also rolled at El Laguito, said the personal attention from the professional rollers helped festival goers learn the challenging art of rolling cigars better than in a large conference room setting.

    “It was really good. It was a nice addition to the festival,” he said. “I would say many more people rolled a smokable cigar than previous editions of the festival.”

    Visitors had the opportunity to visit La Corona, Partagás, H. Upmann and Carlos Baliño. El Laguito was for media only.

    La Corona has about 750 employees, 300 of which are dedicated rollers. The rollers produce brands such as Hoyo de Monterrey, Montecristo, Cuaba, Diplomaticos and San Cristobal de la Habana.

    At the H. Upmann Factory, H. Upmann, Montecristo, and Romeo y Julieta, and sometimes several sizes of Cohiba are produced. Partagas is one of Havana’s iconic factories and Carlos Baliño is the former El Rey del Mundo factory.

    Tobacco Reporter was only permitted to attend El Laguito, the legendary home where many of Habanos’ premier marcas are produced.

    Festival roller trainees were given a wooden board to roll, a “chaveta” tobacco leaf cutting blade, some vegetable glue, and an apron. Several factory rollers made rounds around the room helping festival attendees roll their cigars.

    “I love this new idea,” said Brooks Whittington with Halfwheel, a major industry cigar information website.  “While the rolling competition has always been a favorite part of the festival for me, getting to roll the cigars at the actual factory we were visiting took the experience to the next level.”

    Many other attendees said they hope the tradition continues. The 2024 Habanos Festival is being held in Havana from Feb. 26 – March 1.