Tag: Cuban cigars

Biden Rolls Back Bank Restrictions for Cuba

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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.

May 29, 2024
Registration Opens for 2024 Habano Festival
Registration for the 2024 Habano Festival is now available through an online accreditation system at https://registrations.habanos.com. Those hopeful to attend can review all activities and make a payment online with a credit card.

Typically, registration for the event happens in November of the previous year. This year, registration was delayed by approximately two months. No reason was given by Habanos for the delay.

The registration period for the Habano Festival will be open from January 30th to February 12th or until the slots available are exhausted.

“Once payment has been made, you will receive an email with a QR code which you may present it per activity, either on your phone or printed, along with the physical invitation given to you at Palco Hotel, Convention Center, Havana,” the release states. “Thank you for your interest; we look forward to seeing you at the most important Premium tobacco event in the world: the Habano Festival.”

The events and costs are:

Welcome Evening — €530 ($574) — Event commemorating the 30th anniversary of Habanos S.A. to be held at Club Havana;

Visit to Plantations in the Pinar del Río region — €170 ($184)

International Seminar — €425 ($460);

Mid-week Evening — €745 ($807)— Event celebrating 50th anniversary of Quai D’Orsay brand to be held at the El Laguito Protocol Room;

Visit to Habanos Factories — €200 ($216);

Gala Evening — €1,325 ($1,436) — Dedicated to the 55th anniversary of the Trinidad brand to be held at Pabexpo.

The exclusive cigar event is to be held in Havana from Feb. 26 – to March 1, 2024.

Payments in Cuba can also be placed through Havanatur, according to Habanos. For further information, email Havanatur at eventos@havanatur.cu

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 they have come to expect from each new edition.”
January 30, 2024
Cuba Pushing Renewable Energy

TabaCuba the state-run arm of Cuban cigar production, announced that it would increase its use of renewable energy sources in several of its facilities in Pinar del Rio, Cuba’s largest tobacco leaf-producing province.

All tobacco export factories should have this type of equipment in the first half of this year, TabaCuba’s president, Marino Murillo, told the Cuban News Agency.

Artemisa, Villa Clara and the westernmost territory already have the type of equipment to increase productivity.

According to the official, pre-industrial processes and irrigation to save energy carriers with submersible pumps are the priority.

He also stated that they are betting on renewable energy sources so that the productive processes do not stop in the event of an interruption of electricity services.

January 8, 2024
Habanos Debuts ‘El Rey Del Mundo Royal’

The El Rey del Mundo Royal Series (50 ring gauge x 155 mm length).

Habanos S.A. released its latest vitola, the El Rey Del Mundo Royal Series, at an event in Cyprus last week. The event was put on one of Habanos’, the Cuban cigar industry’s distribution arms exclusive distributors, Phoenicia T.A.A.

The Royal Series (50 ring gauge x 155 mm length) will be on sale exclusively at La Casa Del Habano franchise stores.

The company also unveiled new products such as the Edición Regional Por La Larrañaga Fénix, and the new Cohiba Wide Short (machine-made Cuban cigar).

The launch of the new vitola shared the spotlight with both companies celebrating 15 years of a “fruitful business partnership,” according to an emailed release.

The event brought together more than 450 aficionados from Lebanon, United Arab Emirates, Qatar, Kuwait, Malta, Italy, France, Spain, Germany, United Kingdom, the Democratic Republic of Congo, Switzerland, the Netherlands, Kuwait, Bulgaria, Canada and Bahrain.

Also in attendance were the co-presidents of Habanos, Maritza Carillo González and Luis Sánchez-Harguindey Pardo de Vera.

December 11, 2023
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
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
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
Moving Forward

Habanos and its partners remain committed to boosting the global reputation of all Cuban cigar brands.

By Timothy S. Donahue

Cuban cigars have always had a certain mystique about them, primarily as a result of their exclusivity. Earlier this year, they moved even further out of reach for many consumers when Cuba’s state company responsible for the production and distribution of cigars, Habanos, raised prices worldwide to the levels of its premier brands in Hong Kong. In some countries, prices jumped by as much as 300 percent. The announcement triggered massive hoarding by consumers eager to stock their inventories before the price increases took effect. This in turn led to product shortages in many markets, which then prompted several retailers to raise prices even further.
The price hike was a joint decision between Habanos shareholders, including its new Chinese partner, Allied Cigar Corp. (ACC), a Hong Hong-based investment group that in 2020 purchased 50 percent of the Cuban cigar company for €1.23 billion ($1.2 billion).
The result was a perfect storm that spawned considerable amounts of misinformation. The price increases, along with the difficulties in finding cigars in some markets and the secretive nature of the relationship between Habanos and its Hong Kong partners, had rumors swirling. In an interview with Tobacco Reporter during the 55th anniversary celebration of Habanos’ Cohiba brand in September, Leopoldo Cintra Gonzalez, commercial vice president of Habanos, and Jose Maria Lopez Inchaurbe, vice president of development, insisted that there was “no such basis” for any of those rumors.
“Rumors? We are not keen to speculate about any of this,” said Gonzalez. “The new Chinese shareholders—it’s true that they are not coming from the tobacco business, but we have a very good relationship, a very good friendship. They are now starting to be part of Habanos’ future. They are very excited about our future together for sure. There are still many aspects of this business that they are learning, trying to become familiar with. But this is normal. Nothing dramatic to see.”
Inchaurbe said he had spoken with the shareholders of ACC and that it must be understood that while the cigar business may be new to ACC, marketing a luxury good is not. It’s a learning process, and ACC is excited about the Habanos product and bringing the Cuban cigar brands to new heights, he noted. “They know our brand, our product, but they joined us knowing cigars only from [the] aficionado or consumer point of view,” explained Inchaurbe. “And we are in the process of also understanding their targets and goals and explaining our business goals, which can be a learning process.”
All decisions concerning Habanos are made jointly by both companies, added Inchaurbe. He said the new global pricing structure was a common decision between the two shareholders—and one that had been considered by Habanos for some time. After all, he says, there is no cigar in the world equal to the Cuban Cohiba in terms of quality. When a product has all the attributes of a Cohiba cigar—high quality, good presentation, attractive packaging—it must be considered a very high-end luxury good indeed.
“You have a price in Hong Kong or in London that is double the price [of that same cigar] in some other countries. At the end, for the luxury cigar industry, this is a disturbance,” explains Inchaurbe. “What we are trying to do with the global Habanos pricing is, like the many various luxury items in the ‘luxury’ industry, to have a single, global price for all the consumers wherever they are. Our benchmark for Cohiba was Hong Kong, as we clearly stated, because Hong Kong [is a benchmark] for extremely high-quality luxury products.”

Seeds of Success

In fiscal 2021, Habanos earned more than $568 million while experiencing 15 percent growth compared to the previous year. Despite the global pandemic and growing inflation, at the end of 2021, Habanos was operating 20 Cohiba Atmosphere outlets, 160 La Casa del Habano shops, 1,217 Habanos Specialist stores, 2,465 Habanos Points and 486 Habanos Lounge/Habanos Terrace outlets.
When asked whether Cuba had the capacity to produce more cigars to satisfy growing demand, Inchaurbe said that the company was not going to produce “ever more cigars” just to satisfy the demand. The most important factor in producing Habanos cigars is quality, he insisted, and the company will not increase production at the expense of quality.
“The problem is a very nice problem to have,” he said. “There is a lot of demand. This is our problem, but good news.” According to Inchaurbe, demand for high-value brands, such as Cohiba, Trinidad and Montecristo, is higher than what the company can produce at the level of quality required by Tabacuba, the government arm of the Cuban cigar industry in charge of production.
Inchaurbe insists this is not due to problems in production but because cigars are a natural product where you put all the focus on quality. “In my opinion, it’s difficult to say whether the problems of shortages in some retail shops all over the world will continue because demand is too much,” he said. “But of course, together with Tabacuba, with an investment program, we are trying always, especially Tabacuba, to be able to produce more cigars with the same quality. And that is the only way we will have the ability in the future to satisfy the growing demand.”
Habanos’ goal remains to grow every year without compromising the quality of its cigars, according to Gonzalez. Over the past 10 years to 15 years, the company has averaged nearly double-digit growth. However, today, Habanos isn’t necessarily looking to build its brick-and-mortar footprint as in previous years but rather to build on the value of its current assets alongside the global reputation of the Habanos brand. Looking at the first three quarters of 2022, Gonzalez expects the company to experience growth in line with that of 2021.
“Generally speaking, the premium cigar industry is growing for all the manufacturers, all the traders, because there is a big demand,” he said. “There is a great interest in our product. And, as usual, Habanos is the leader in this demand. Our demand continues to be very strong, especially in some emerging areas like Asia-Pacific. Of course, we are also going through difficult periods like this global inflation. This could also impact our business.”
The duty-free business in particular was heavily impacted. “The duty-free channel is not yet 100 percent recovered compared to pre-pandemic levels, and duty-free is a very significant channel,” said Gonzalez. “We are lower than the pre-pandemic figures in the duty-free channel while in the domestic channel, we are growing quite well.”
Innovation is going to be a central focus for Habanos in its quest to boost production and its global presence. Gonzalez said that the company will continue launching new products, innovating its operations and trying to satisfy its clients. The company is also considering possible technological improvements in its supply chain operations to better distribute its cigars.
“We want to prevent transfers [of product] from one market to another,” he said. “That’s why in those specific brands, Cohiba and Trinidad, we decided to harmonize with Hong Kong. Habanos is innovation. It is in our DNA, it’s in our products, in our brands. It’s true; we will continue innovating, launching new products, trying to give to our clients more activities, special activities about the lifestyle and so on because this is the demand from our clients. And regarding the prices, I will say that we will continue monitoring them.”
In the end, both men agree that the true value behind Habanos and its cigars are the factory workers who produce the cigars, the retailers who sell them and the consumers who are dedicated to Habanos’ 27 brands. “We have more than 4,000 specialized point stores in the world that represent, I would say, more than 50 percent of our sales,” said Inchaurbe. “They are in charge of this ship. For us, these new retail concepts that are driving our growth, we are going to continue bringing more points into the family and strengthening the points that we already have in the market. Habanos is poised for great success.”

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 1, 2022