Tag: Cuba

Habanos Announces Habano Festival Dates

Credit: Timothy S Donahue

The dates for the XXIV Edition of the Habano Festival, have been announced. The exclusive cigar event is to be held in Havana from Feb. 26 – to March 1, 2024.

Habanos, S.A., the state-run distributor of global Cuban cigars, said in a release that its annual event is “in an international and exclusive atmosphere,” and it will include a wide-ranging program of activities combining the knowledge of the Habano and the exciting culture, including the ending final evening gala dinner and famed humidor auction.

“In this XXIV Edition, the best specialists, distributors and aficionados will enjoy all the activities that along with the best gastronomy and music have made this famous event: visits to renowned Habanos factories, plantations, seminars with interesting lectures, exclusives pairings, contests and three very special nights where they will get a sneak preview of the latest Habanos, S.A. novelties,” the release states.

Habanos, S.A. is already “working to make this event memorable for the expectations of aficionados with the passion and magic that they have come to expect from each new edition.”

More details on the Habano Festival will be announced soon and registration will be open to the public.

November 6, 2023
Habanos Operational Marketing Director

Beatriz Garrido García

Habanos, S.A., the distribution arm of Cuban cigars, announced today that Beatriz Garrido García has been appointed as the new operational marketing director.

Garrido has a degree in Scientific and Technical Information. She has been linked to the world of Habanos since 1997, starting as a commercial information specialist for the Operational Marketing Division, according to a press release.

In 2001, she served as a market intelligence specialist belonging to the Strategic Marketing management.

Later on, her career was consolidated and in 2009 she was appointed to the position of market supervisor at Tabacalera S.L.U., until 2013.

She then began to work in commercial management as an international saleswoman. In 2017, she served as corporate director for Phoenicia Trading, the exclusive distributor of Habanos for Africa and Middle East.

Later, she held the position of commercial director of Cigarte Ibérica based in Spain. Before being appointed as operational marketing director, Garrido served as international market supervisor.

October 12, 2023
Cuban Tobacco Growers Reinvest in Tractors

Image: Tobacco Reporter archive

Tobacco producers of Havana cigars plan to reinvest their income in the purchase of tractors to boost the economic sector in Cuba, reports Prensa Latina.
Granma newspaper published a story referencing the acquisition in Pinar del Rio of 270 tractors this year. The farmers were able to acquire the tractors through a financing scheme in which they receive part of the payment for their harvest in foreign currency.
Pinar del Rio produces 60 percent to 70 percent of the tobacco harvest for the country. Marino Murillo, president of the Tabacuba Business Group, stressed the importance of the delivery of the tractors to the region. Pinar del Rio received a first delivery of 45 tractors, and another batch of more than 20 tractors was sent to the provinces of Sancti Spiritus, Villa Clara and Cienfuegos.

May 5, 2023
Returning to Cuba

The Cuban cigar industry is flourishing despite several challenges, including weather and factory staffing.

By Timothy S. Donahue

Photos: Timothy Donahue

It was going to be a two-hour to three-hour drive. The rented 16-seat passenger bus had problems the day before, but the driver insisted that the issues had been resolved. Taking the buses provided by Habanos, the manufacturing and distribution arm of Cuba’s state-controlled cigar industry, is more reliable, but the trip often takes more than 12 hours to complete because things move at a slower pace with the Festival del Habano crowd. A small group of colleagues and I decided to rent the private bus instead.
It didn’t turn out well. About 45 minutes into the trip to Pinar del Rio, Cuba’s tobacco growing region on the western side of the island, the bus began to fill with smoke. In typical Cuban fashion, the driver turned around in his seat and said, “Do not worry; this happens all the time.” It soon became too much, however, and the bus had to pull over along the side of the busy Havana highway during morning rush hour. The six passengers climbed down the steps to the side of the road. Smoke continued to billow from the engine.
An hour after being promised another bus would arrive in 15 minutes, we decided to call it a day. We then began the hour wait for two cabs to make the short trip from the city center to pick us up during what was now extremely heavy traffic. Cuba doesn’t have much gasoline, so everything runs on diesel, and the exhaust made the roadside nearly as toxic as riding in the damaged bus. We never made it to the farms. The bus driver assured us that the bus would be fixed by the next day. We never bothered to call to find out.
Maritza Carillo Gonzalez
Travel in Cuba can be complicated. For all of its troubles, however, the island is filled with a passion and love for everything Cuban, including its music, food and, of course, cigars. During the 23rd edition of the Habano Festival, which took place from Feb. 27 to March 3, more than 2,000 cigar aficionados from around the globe came together in Havana to celebrate the Cuban cigar after a two-year hiatus caused by the Covid-19 pandemic.
Habanos’ new co-president, Maritza Carrillo Gonzalez, said she has had the honor of attending numerous festivals and has seen for herself the passion with which Habanos enthusiasts enjoy and appreciate the event. She said she was excited for its return. “This year has a special flavor,” Gonzalez said. “This is a unique and long-awaited edition in which I take on a new position that I accept with great enthusiasm and responsibility.”

Rising from Ruin

Cuba’s tobacco farms are recovering from the damage sustained in September, when Hurricane Ian made landfall as a Category 3 storm. While Habanos brought festivalgoers to a smaller farm in Pinar del Rio, many media members wandered to other larger, more famous farms in the area. They found that the plants were still small, but farms seemed to be growing and curing plenty of tobacco leaf.
The industry intends to plant 9,500 hectares of tobacco, down from an initial plan of 15,000 ha, according to Enrique Blanco, agricultural director of Tabacuba, the agricultural arm of Cubatabaco, the state-owned tobacco conglomerate. An estimated 2,100 ha of premium shade-grown leaf will be cultivated, which Cuba hopes to use to meet its growing export demands.
In Cuba, the growing process starts in July and August, when the seedbeds are prepared, preferably on loose, well-drained soils. After 45 days of irrigation, the plants reach a height of 13 cm to 15 cm (5 inches to 6 inches) and are ready to be replanted in early October. The plants reach their full growth during the 45 days to 50 days following replanting, and after another 50 days they are ready for harvesting.
Private tobacco producers have been meeting with Cuban authorities over the past few months to secure the state’s help in settling debts and paying for materials to rebuild tobacco drying houses, according to Cubatabaco. Nicaragua and the Dominican Republic as well as other producers have also stepped in to help Cuba recuperate. Several farms have new curing barns, but many more are still needed.

Factory Floors

Entering a Cuban cigar factory can be overwhelming for the senses. The smell of cured leaf, cigar smoke and hard work can be intoxicating. During the visit to the factories this year, festival attendees had the opportunity to experience two of Cuba’s “Big Four” factories: La Corona, also once known as La Casa de Hierro, and the world-famous Real Fabrica de Tabacos Partagas. The other two major factories are H. Upmann and El Laguito. At La Corona, the factory produces Romeo y Julieta, Hoyo de Monterrey, Cuaba, Por Larranaga, Saint Luis Rey, San Cristobal de la Habana and some Montecristo. Habanos markets 27 premium brands. There are over 400 market names and an estimated 100 factory names.
La Corona’s manager said that daily production averages an estimated 25,000 cigars. Workers strip an estimated 1,200 leaf per day. During the peak of the Covid pandemic, those numbers plummeted by half. “We have returned to close to normal operations,” the manager said. “What is complicated is we had many experienced rollers leave the factory or even the country, and now we must train new rollers, and that takes time.” The manager also said that in 2022, farmers began testing a new variety of tobacco that was more resistant to fungus. “We like the results so far,” he said.
The quality control manager at La Corona claimed that the wrapper imparts little flavor to the cigar. This led to a contentious debate among festivalgoers, and the opinions varied greatly. However, when the manager insisted that the addictiveness of Cuban cigars was due not to their exquisite leaf but to the fact that their wrappers are sorted on the thighs of Cuban women, his statement went oddly uncontested.
At the Partagas factory, other brands are produced as well–everything from Partagas, Cohiba and Romeo y Julieta to Bolivar and Quai d’Orsay. The original factory closed for renovations in 2011; however, after a roof collapse in 2020, the original historic factory was shuttered for good, and all operations moved to the “new” historic building, which is still quite old.
Currently, Partagas has 200 rollers producing about 15,000 cigars a day. However, the tour guide said that on many days there are only 100 rollers or so because, like La Corona, many of them have left for other factories located closer to their homes or have left the country entirely. There is room for 240. Many rollers also switch between factories based on demand for cigars.
The exodus was evident throughout Cuba where even some well-known rollers have left the country. Reynaldo Gonzalez, for example, moved to Mexico, and the Hotel Conde de Villanueva where his La Casa del Habano (LCDH) was located is shuttered with green plywood over the entranceways. Alejandro Gonzalez Arias left the Hotel Comodoro to open a cigar lounge in California. The Comodoro store is now operated by two talented female rollers.

Robust Sales

In 2022, Habanos generated $545 million in revenue, nearly 2 percent more than in 2021. Habanos reported a turnover of $568 million in 2021 (Habanos did not define its 2022 turnover, only revenue), up 15 percent growth over the previous year. The company’s largest markets for cigar sales are Spain, France, Germany, China and Switzerland, consecutively.
The company also boosted its retail presence in 2022. Habanos now has 157 LCDH stores, 17 Cohiba Atmosphere locations, 1,264 Habanos Specialists, 2,744 Habanos Point designated stores and 587 Habanos Lounge and Habanos Terrace locations.
Last year, Habanos announced a new “global pricing standard,” which greatly increased the prices of Cuban cigars around the world. The company has already announced at least two additional price increases for 2023. The price increases have impacted the costs of Cuban cigars greatly. In 2018, for example, a box of 10 Cohiba Talisman Limited Edition 2017 cigars cost $600. Today, that same box can cost anywhere from $2,350 to $2,850—if they can be found. Cohiba Robustos were selling at multiple locations in Cuba for about $1,700 a box, meaning each cigar was selling for just under $70 each. In 2019, the box of 25 cigars was less than $300.
The company is confident in its pricing strategy, according to Jose Luis Lopez Inchaurbe, development vice president of Habanos. “The process of implementing the new price homogenization strategy takes time. As in every market, the procedures and the regulatory situations are different,” Lopez said. “So, the price increase has not been made at the same time in every market. Then we are now evaluating how the demand has been impacted by this step. In any case, it’s clear that some brands and references have responded better than others. But we see this as a normal situation of the compensation of the demand by market.”
Luis Sanchez-Harguinday, co-president of Habanos, said that the company has “big expectations” for the coming year, adding that two factors will make the most impact. “First of all, because we trust in the power of our initiatives that we have, product initiatives and other activities that we are planning for the year,” he said, “and this is a great weapon that we have, and it’s all the enthusiasm, the hard work, the spirit and passion devoted by all the participants in the value chain of our business, starting by the Cuban Tobacco Research Institute, going through the farmers, the tobacco growers, the Cuban industry, of course, the workers at Habanos, and finally, the unique and exclusive distribution network that we have.”

Evening Events

The most attended experiences during the Habano Festival are its three evening events, held on Monday, Wednesday and Friday. Each of the three evening events celebrates specific brands or releases, and the Monday opening night event commemorated the Montecristo Open line. It was held at Club Habana, a historic beach resort that opened in 1928. This year’s event featured a show with drones depicting scenes of farmers, cigar bands and cigar brand names. The event can most easily be described as a street festival on a boardwalk at the beach on the grounds of a historic resort.
Wednesday’s evening event is a little different from Monday’s event but has many of the same qualities. Held at the El Laguito Reception Hall, this experience was dedicated not only to the Bolivar marca but also to both Habanos Specialist and LCDH stores. The evening marked the release of Bolivar’s New Gold Medal cigars. This event is a giant, fancy pool party where everyone is dressed up and no one is swimming.
It was rumored that for the first time in the Habano Festival history, the company had an LCDH outlet at Monday’s evening event that was selling the newly released Open Slam. However, at the Wednesday event, participants witnessed firsthand the LCDH table selling boxes of 10 of the Bolivar New Gold Medal cigars for $250. It was a madhouse, and people waited the entire evening in some cases to buy a box of the new cigars at a seriously reduced price reserved for the festival. There is no timetable for when the cigar will be released to the public.
Friday’s gala dinner event is the premier event of the festival and is traditionally held at the Pabexpo Fairgrounds. This experience is a sight to behold. The 2023 evening paid tribute to the Partagas brand with the launch of the Linea Maestra, the brand’s most premium line. Only an estimated 1,200 people are permitted to attend. The gala was also honored by the attendance of Cuban President Miguel Diaz-Canel, who signed the Cohiba humidor for the festival’s humidor auction, bringing back an old tradition popularized by Fidel Castro during the first editions of the festival.
Castro last signed a festival humidor in 2006, when five humidors sold for a total of $725,000. It was also the final time Castro was able to attend the event. Famous for his ability to orate at length, Castro’s presence at the early events caused a mixture of awe and trepidation by some guests—awe at the opportunity to share a room with such a historical figure and apprehension about missing an early morning flight. Only a few journalists, including Tobacco Reporter, were allowed on the floor where the gala was taking place this year, as all the other journalists were relegated to platforms at the far ends of the room for nearly the entire evening.
The highlight of the closing event is the humidor auction, which has brought in record amounts of money for Cuba’s healthcare system the past few years. This year would be no different. The 2023 humidor auction generated a record $11.89 million in combined sales. This shattered the festival’s previous auction record of $4.71 million in 2020. This year, a Cohiba humidor was sold for $4.45 million, almost equaling the entire 2020 auction. It is the most expensive humidor ever sold at auction. According to sources, the buyer of the Cohiba humidor is one of the new Chinese partners of Allied Group, which owns 50 percent of Habanos.
It is impossible to truly know Cuba without visiting Cuba. For those in the cigar industry, there is no better time to travel to the country than during the Festival del Habano. For all its difficulties, it is still an amazing adventure. As one Cuban-American who has been in the tobacco industry for 35 years and was attending his first festival this year said, “It’s an amazing place. The people and the atmosphere are intoxicating. It’s also easy to see how a trip to Cuba could be going along great, and then suddenly, everything just falls apart.”

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.

April 1, 2023
Cuba Headed for Worst Tobacco Crop

Shade grown tobacco growing at the historic Robaina farm in Pinar del Rio (Credit: Hirochi Robaina)

Cuba´s Pinar del Rio province, renowned for its high-quality tobacco, is heading towards the worst harvest in its history, state-run media reported late on Wednesday.

The struggle with leaf production was expected this year. The province was heavily impacted by Hurricane Ian last fall. Most of the region´s tobacco-drying houses were flattened and homes and infrastructure were destroyed.

The 2022-2023 planting season will go down as the “smallest in Pinar del Rio´s history,” according to a report in Granma, Cuba´s state-run newspaper, as reported by Yahoo.

Prior to the hurricane, the province aspired to plant 11,200 hectares, the report said, but the region will struggle to reach half that goal.

State-run tobacco company Tabacuba said in the report it would instead prioritize the highest quality crop to assure sufficient output for the all-important export sector.

The planned area for tobacco planting this year is down to 9,500 ha from an initial plan of 15,000 ha, Enrique Blanco, agricultural director of Tabacuba said last month. Under fabric cover, 2,100 ha of premium leaf will be grown, which Cuba hopes to use to cover export demand.

March 23, 2023
Cuba Recovers from Hurricane Ian

Image: Timothy Donahue

Cuban tobacco farmers are working to recover after Hurricane Ian hit the region six months ago, destroying 80 percent of the country’s tobacco infrastructure, reports AP.
When Hurricane Ian his last September, it destroyed almost everything: “Not a single tobacco house was left standing,” said Hirochi Robaina, one of the most recognized tobacco producers in Cuba. “There were no warehouses; there was no tree left. Everything broke, and at that moment, I did not believe it was possible to plant.”
After the tragedy, Robaina was resigned to planting beans and vegetables instead of tobacco, but he changed his mind “to maintain the family tradition of a century,” and he was able to plant and grow about 2 hectares, which accounts for about 30 percent of what he had in 2022.
Private tobacco producers have been meeting with Cuban authorities since the hurricane to secure commitments for the state to help settle debts and pay for materials to rebuild tobacco drying houses, according to AP. Nicaragua and the Dominican Republic as well as other producers have also stepped in to help Cuba recuperate.
The planned area for tobacco planting this year is down to 9,500 ha from an initial plan of 15,000 ha, according to Enrique Blanco, agricultural director of Tabacuba. Under fabric cover, 2,100 ha of premium leaf will be grown, which Cuba hopes to use to cover export demand.

March 9, 2023
Habano Festival Concludes With Gala

Photo: Timothy Donahue

The 23rd Habano Festival culminated March 3 with the gala dinner held at the Pabexpo Fairgrounds in Havana. Around 1,200 attendees enjoyed the night complemented by national and international music, dance and indoor fireworks. The gala was also honored by the presence of Cuban President Miguel Diaz Canel, who attended the event along with other government authorities.
The evening paid tribute to the Partagas brand with the launch of the Linea Maestra, the brand’s most premium line, made up of three new vitolas: Origen (46 ring gauge x 154 mm length), Rito (52 ring gauge x 168 mm length) and Maestro (56 ring gauge x 132 mm length). Each of these vitolas will reach the market in a special case containing 20 units.
For the first time in the history of the brand and the Habanos portfolio, the vitolas of this new Partagas line will be made with 100 percent tobacco grown in San Luis, in the Vuelta Abajo plantations located in the Pinar del Rio region.
The gala night also featured a Hall of Fame that illustrated the great work of the people who have made the Habano what it is today.
One of the highlights of the evening was the auction of the exclusive humidors dedicated to the six global Habanos brands: Cohiba, Montecristo, Romeo y Julieta, Partagas, Hoyo de Monterrey and H. Upmann. The proceeds reached a total of €11,220,000 ($11,965,309) and will be donated to the Cuban public healthcare system.

March 6, 2023
Habanos Revenues Reach $545 Million
Credit: Timothy S. Donahue

Habanos S.A. has announced it generated $545 million in revenue in 2022. It’s nearly a 2 percent boost over its 2021 revenue, a representative of the manufacturing and distribution arm of the Cuban cigar industry told Tobacco Reporter during its coverage of the 23rd edition of the Habano Festival on Monday.

The company also stated that its largest markets for cigar sales are Spain, France, Germany, China and Switzerland, consecutively. These are the same five top countries as 2021, though China was listed second and France was listed fourth.

Globally, Europe, with a 53.7 percent market share, continues to hold the top spot for regional sales, however, its percentage was the only region to experience a decline in sales. Europe is followed by the Asia-Pacific region (19.3 percent), the Americas (15.3 percent), and Africa/Middle East (11.7 percent).

“These results reflect the perfect combination of the passion we all feel in this wonderful Habano business and the strength of our brands,” said Maritza Carrillo González and Luis Sánchez-Harguindey Pardo de Vera, co-presidents of Habanos S.A., in a press release. “They put the cherry on top of the unique tobacco that grows in this land and that offers unparalleled moments and experiences to aficionados from all over the world.”

Habanos says it grew its worldwide network of official sales outlets by 10 percent in 2022. It also announced the current count of its cigar retail experiences as follows:

17 Cohiba Atmosphere locations (20 in 2021)

157 La Casa del Habano stores (160 in 2021)

1,264 Habanos Specialists (1,217 in 2021)

2,744 Habanos Point designated stores (2,465 in 2021)

587 Habanos Lounge and Habanos Terrace locations (486 in 2021)

Last year, Habanos S.A. announced a new “global pricing standard,” which greatly increased the prices of Cuban cigars around the world. The company has already announced at least two additional price increases for 2023.

Habanos reported a turnover of $568 million in 2021, up 15 percent growth over the previous year.
March 1, 2023
Cuba Gears Up for Habanos Festival

Photo: Habanos

Habanos is gearing up to celebrate the 23rd edition of its Habano Festival in Havana, Feb. 27 to March 3, the company announced in a press note.
The state-run tobacco firm has prepared a host of activities, workshops, lectures and presentations to share knowledge of its tradition and value chain. It expects guests from more than 110 countries.
The 23rd edition of the Habano Festival kicks off with the opening of the trade fair. This year’s edition brings together more than 270 exhibitors from 10 countries. That same night, Club Habana will host a Welcome Evening, which will revolve around Montecristo and its much-appreciated Línea Open.
The mid-week evening will take place at El Laguito Protocol Room and will feature Bolívar and La Casa del Habano. It will celebrate the brand’s 121 years and the worldwide importance of the international network of franchised specialized stores with the presentation of a new vitola.
The grand finale will be the March 3 gala dinner at Pabexpo. This evening will be dedicated to Partagás. One of the most important moments of the festival will be the Habanos Awards Ceremony and the traditional humidor auction, whose proceeds will go, as is customary, to the Cuban public health system.
In parallel with the festival, Fernando González García, president of the Cuban Association of Vitolfilia, and Zoe Nocedo, member of the association, will present a seminar at the Havana Convention Center, titled “The Partagás brand as seen through Vitolfilia.”
Throughout the week, the same venue will host masterclasses on the Habanos-making process, as well as tastings and pairings with different products.
Visitors will also experience a new edition of the Habanos World Challenge in which contestants demonstrate their knowledge and mastery of the different stages of Habano making and enjoyment.
The program of activities at the 23rd Habano Festival will be rounded out by visits to plantations, which this year will take place in in the Vuelta Abajo zone, in the Pinar del Río region, as well as visits to the Partagás and La Corona factories.

February 20, 2023
Habanos Appoints First Woman as Co-President

Maritza Carrillo González (Credit: Habanos S.A.)

Habanos S.A., the manufacturing and distribution arm of the Cuban cigar industry, has announced that Maritza Carrillo González has been appointed as its new co-president after being approved by Habanos shareholders.

Carrillo’s promotion is “endorsed by the experience, knowledge and work she has been performing for several years in different positions within Habanos, S.A. and other entities related to Habanos,” according to a release.

She is the first woman to serve as co-president of the company. She is rumored to be replacing Inocente Núñez Blanco as one of the company’s two co-presidents alongside fellow co-president Luis Sánchez-Harguindey Pardo de Vera.

Carrillo holds a degree in International Economic Relations and has been linked to the world of Habanos since serving as a founding team member of the company.

She has held various responsibilities in the commercial, marketing and business development divisions of Habanos.

From 2006 to 2011, she served as marketing director and head of Havanesa stores at Empor, S.A. (the exclusive Habanos distributor in Portugal).

In 2011, she was promoted to serve as business development director of the company.

She later assumed the position of president of Comercial Iberoamericana S.A. (COIBA) based in Spain.

In 2021, Carillo became general manager of Tabagest S.A., where served until her recent appointment as co-president of Habanos.

The move comes as the company is preparing for the 23rd edition of the Habanos Festival taking place from Monday, Feb. 27th, to Friday, March 3rd. It is the premier event for the Cuban cigar industry.

Habanos reported a turnover of $568 million in 2021, up 15 percent growth over the previous year.

February 20, 2023