One day as HSA CEO

[El Presidente]

Newly appointed HSA El Presidente Rob Ayala fronted the Habanos Festival 2013 dinner with a stunning 10 point plan which led to a series of applause and catcalls from the industry centric audience.

1. 5 new cigars will be launched in 2013 to reinvigorate certain brands and reward afficionados worldwide.
• Ramon Allones Extra will join regular production.
• Diplomatico Robusto to be introduced.
• Sancho Panza Robusto to be introduced.
• Punch Robusto to be introduced.
• Por larranaga Robusto to be introduced.
• Trinidad Flying Pig to be introduced. Reyes and Trinidad "T" to be retained.
• La Gloria Cubana Robusto to be introduced.
• Other brands/cigars will be assessed in following years.

[*]Partagas Serie De Connaisseur No 1, 2, & 3 to be reintroduced in cabinets of 50. Limited production every 3 years.[*]Cancellation of the LE program.[*]Introduction of a Heritage Program bringing back 3 cigars annually from the period 40's - 90's.[*]Introduction of a solely top 100 Retailer Festival October each year where retailers have access to top HSA brass to discuss ideas, threats and opportunities.[*]HSA annual "Community Cabinet" functions in Canada, HK, South Africa, UK, Moscow, Madrid, Germany, Mexico open to afficionados to discuss ideas, threats and opportunities.[*]La Corona to specifically produce all existing and future short and long skinnies under a quality control management program.[*]Price increases of 20% across the board to all distributors from 2014. Wages in all factories will increase to a minimum of $50 a month with bonuses. El Presidente pointed out this increase for a standard D4 would equate to less than 75 cents for all distributors. Cuban rollers would become again some of the best paid employees in Cuba.[*]Corruption crackdown. Prosecution (public) of all HSA and Tabacuba employees involved as "privateers".[*]Freeze in discontinuations for 3 years. However sale quotas will be set for all cigars. If they do not sell in the quotas required they will be produced every 3 years only in batches of 100,000 cigars. If these sale quotas are not met they will be discontinued. The process will be public.

El Presidente was removed from office the following day

[riazp]

Where do I vote?

what would I do? pretty much what you said Rob. Axe the LE program, bring out some new vitolas to ingnored marcas, i'd bring back the diplo 4 as well personally, and instead of Diplo robusto it would be a CG or Lancero.

I'd also introduce Lanceros to the Bolivar and RA Marcas.

[sblevit]

Pres: What would you do with the RE Program?

[benjaminbbush]

Dang, seems like you have had some time to think about this.

[El Presidente]

Pres: What would you do with the RE Program?

One cigar a year per distributor Maximum 75000, cigars/minimum 25000. Must be from :

Cuaba

Diplomatico

LGC

Sancho Panza

Rey Del Mundo

Juan Lopez

Ramon Allones

Bolivar

Punch

Fonseca

Quintero

Por Larranaga

Trinidad

Vegas Robaina

***the distributors must be involved in the final blend over a week's selection. They are entitled to bring a team of 20 including distributors, top retailers, top clients. They are encouraged to work 2-3 years in advance of what they are seeking to select****

[gersonmorelli]

Love the heritage program idea. Even if it meant ending the LE... Even though we've seen some great LE, there is also a lot of crap. At least the heritage program would have a better marketing appeal.

RA Extras has to be a regular production cigar (maintaining the good quality).

But how about doing something with Romeo y Julieta?? I'd start off by cutting a lot of cigars from the marca that are horrible and start focusing on being consistent and reviving this legendary brand. Something has got to be done about RyJ, it's not fair to its historical value in the habanos legacy...

[dan5974]

Love the heritage program idea. Even if it meant ending the LE... Even though we've seen some great LE, there is also a lot of crap. At least the heritage program would have a better marketing appeal.

RA Extras has to be a regular production cigar (maintaining the good quality).

But how about doing something with Romeo y Julieta?? I'd start off by cutting a lot of cigars from the marca that are horrible and start focusing on being consistent and reviving this legendary brand. Something has got to be done about RyJ, it's not fair to its historical value in the habanos legacy...

I totally agree with RyJ.Even though I'm one of the few that actually likes that brand,there are too many sizes.They also need to cut some of the Cohiba and Montecristo sizes as well.

[sblevit]

Let's face is, Cubans are bad businessmen. If I were in charge of HSA, I would introduce a "guest blender" program where folks like Pepin, Fuente, Dion, etc. are brought in to blend cigars under the "Habanos" brand, perhaps some even with Nic or DR tobacco in the blend. They would fly off the shelves.

[El Presidente]

Let's face is, Cubans are bad businessmen.

I can't let this one pass. Cubans are 50% of the JV with Imperial Tobacco (UK). Imperial purchased Altadis which was a Spanish Company. They kept predominantly the same team.

HSA is for all intensive purposes run by "Spanish Executives and Cubans". The Spanish hold the whip hand (money) and the marketing.

There are many on the Cuban side of the JV who hate what is going on.

[sblevit]

^ Fair enough, but Spain isn't exactly in tip top financial shape either.

[El Presidente]

^ Fair enough, but Spain isn't exactly in tip top financial shape either.

Fair enough..... but neither is USA/Italy/UK/Portugal/Greece/Japan/France etal

[El Presidente]

Love the heritage program idea. Even if it meant ending the LE... Even though we've seen some great LE, there is also a lot of crap. At least the heritage program would have a better marketing appeal.

RA Extras has to be a regular production cigar (maintaining the good quality).

But how about doing something with Romeo y Julieta?? I'd start off by cutting a lot of cigars from the marca that are horrible and start focusing on being consistent and reviving this legendary brand. Something has got to be done about RyJ, it's not fair to its historical value in the habanos legacy...

Agreed re R&J. A factory/marque close to my heart.

R&J needs a few things under my second year.

1. Full factory establishment.

2. All R&J produced at R&J.

3. Cut the lines by 30%.

4. Full support by HSA. The Divan currnetly is not owned by HSA. This changes giving it full tourism promotional support ala Partagas.

[jedipastor]

El Presidente for CEO! Seriously, all great ideas. The only one I'm not sure on from a business standpoint is the cancellation of the LE program. I thought that made a lot of money (could be mistaken). I think the LEs just need to be BETTER cigars. But everything else is golden, especially the extra QC measures (marcas produced in the same factory, special factory/teams within the marca-factory for skinnies, etc).

I would also have a goal of a Lancero in every marca within 5 years.

Sales wise, I'd make sure everything popular came in 10-count boxes. Also, I'd initiate some "Sampler Boxes" for certain vitolas (maybe rotating yearly), say a 25-count box with 3 sticks each of 8 different regular Robustos plus 1 LE/RE, etc.

[mk05]

Without getting tooooo dreamy about changing the system, I will go on about how I plan to profiteer from this grand opportunity .

I would hoard all the best tobacco, keep pilons of the best VR tobacco, and other tobaccos from each region, let it marinade for like 5 years.

Make a cigar label called the Marque, named after me of course , vitola #1 would be the SdC #1 blend but a bit stronger and wetpack it . Then vitola #2 would be the Trinidad Reyes blend in the Laguito #2 size, a #3 Cazzy size of the Monte #2 blend but stronger and wetpack it (the way it used to be), #4 a panatela with the RASS profile...wetpack that bruh too , then the #5 would be a Laguito #3 size in cabs of 50 and 100 called the super selection, 10 or 20 of different blends separated by dividers. Would do a RyJ Coronita en Cedro, Partagas Super Partagas, Monte Joyita, Cohiba Esquisito, SLR pacificos blends. OR 5 custom blends by the 5 level8 rollers (Hammy, China, Reynaldo, Santos, etc)

Then after 5 years, we have a blendoff. I invite all the best known blenders in the game and have them make the best GD cigars possible from the aged tobacco. Call it the Marque Grand Seleciones, featuring Hamlet, Santos, Pepin, EPC, La China, Reynaldo, etc. Put the blender's face on the band. Boom.

Yea I love wetpacks .

Then I'd also sell JARs of just tobaccos. The Pinar. The Vuelta. You get the drill. Each holding enough to make 10 cigars. Buy them all, blend them, and roll your own. Would be awesome .

[winelover]

Firstly I'd discontinue some very popular marcas/vitolas just to piss people off. Then I'd further alienate my clientele by making every cigar a two bander and at least 50RG. I will obviously pay the rollers in the factories far less than they receive now because they need to know who is the boss. I would allow all the top executives to do what they please with money and cigars. They have no reason to be corrupt since they love the gov't so much. Of course, I will introduce an LE every 6 months for every single global marca and every city on the planet with more than 50,000 people(minus the USA of course) will receive their own regional edition every month. I will then make sure that every cigar is either boxed in a pretty lacquer, magnetic box that will only lead to heftier pricing or I will throw them all in a jar to attract the tourists. After several years I will ensure that Cohiba, Montecristo and Partagas are the only marcas left in regular production, with every other marca being used for REs.

Oh wait....

Spot on! Pretty much how they are headed.

[winelover]

Newly appointed HSA El Presidente Rob Ayala fronted the Habanos Festival 2013 dinner with a stunning 10 point plan which led to a series of applause and catcalls from the industry centric audience.

1. 5 new cigars will be launched in 2013 to reinvigorate certain brands and reward aficionados worldwide.

• Ramon Allones Extra will join regular production.
• Diplomatico Robusto to be introduced.
• Sancho Panza Robusto to be introduced.
• Punch Robusto to be introduced.
• Por larranaga Robusto to be introduced.
• Trinidad Flying Pig to be introduced. Reyes and Trinidad "T" to be retained.
• La Gloria Cubana Robusto to be introduced.
• Other brands/cigars will be assessed in following years.

[*]Partagas Serie De Connaisseur No 1, 2, & 3 to be reintroduced in cabinets of 50. Limited production every 3 years.[*]Cancellation of the LE program.[*]Introduction of a Heritage Program bringing back 3 cigars annually from the period 40's - 90's.[*]Introduction of a solely top 100 Retailer Festival October each year where retailers have access to top HSA brass to discuss ideas, threats and opportunities.[*]HSA annual "Community Cabinet" functions in Canada, HK, South Africa, UK, Moscow, Madrid, Germany, Mexico open to afficionados to discuss ideas, threats and opportunities.[*]La Corona to specifically produce all existing and future short and long skinnies under a quality control management program.[*]Price increases of 20% across the board to all distributors from 2014. Wages in all factories will increase to a minimum of $50 a month with bonuses. El Presidente pointed out this increase for a standard D4 would equate to less than 75 cents for all distributors. Cuban rollers would become again some of the best paid employees in Cuba.[*]Corruption crackdown. Prosecution (public) of all HSA and Tabacuba employees involved as "privateers".[*]Freeze in discontinuations for 3 years. However sale quotas will be set for all cigars. If they do not sell in the quotas required they will be produced every 3 years only in batches of 100,000 cigars. If these sale quotas are not met they will be discontinued. The process will be public.

El Presidente was removed from office the following day

Pres for Pres. What I wonder is how influence can be bourne on these people at Habanos SA? Are they impervious to the views of their major distributors? Is there a way you can club together with other major distributors and petition them - surely that must be one of the most effective ways? Or is the best route via Imperial Tobacco - to lobby there directors? Surely there must be a way of influencing them somehow.

[PigFish]

... for a minute I saw this image! It was Rob walking on water... Then the dog barked and I woke up.

-

[LeafLover]

I'd form focus groups to research what consumers are saying....and listen to them.

Or, I'd save that money and be a secret member on these boards and see what people are writing.

[PigFish]

I can't let this one pass. Cubans are 50% of the JV with Imperial Tobacco (UK). Imperial purchased Altadis which was a Spanish Company. They kept predominantly the same team.

HSA is for all intensive purposes run by "Spanish Executives and Cubans". The Spanish hold the whip hand (money) and the marketing.

There are many on the Cuban side of the JV who hate what is going on.

Foul!

Wait a minute babe! Cuba is 90 miles from arguably the stongest economic force on the planet. It has thumbed its nose at that force for 50 odd years. Do you really think that 430 million and some change buys one of Cubas largest businesses??? If all it took was 430 million to get the Castration brothers to change color... it would have been done long ago.

My gut is that certain dictator Cubans like Spaniards about as much as Americans and after the revolution there is about zippo chance of turning Cuban tobacco over to the Spanish... again! Fidel might have been a Soviet puppet, nukes were on the table and he was full of rum and testosterone, but he ain't no Spanish puppet!

Take one look at Altadis USA's catalogue. They believe in choices, they want to roll and sell tobacco. They make money! This is no Altadis model.

My 2 cts. -

[Montaigut]

I can't let this one pass. Cubans are 50% of the JV with Imperial Tobacco (UK). Imperial purchased Altadis which was a Spanish Company. They kept predominantly the same team.

HSA is for all intensive purposes run by "Spanish Executives and Cubans". The Spanish hold the whip hand (money) and the marketing.

There are many on the Cuban side of the JV who hate what is going on.

Not quite; the image may be accurate but it is incomplete.

Customers are the ones that supply the whip ($) regardless of which of the two arms of HSA wields it.

As long as returns meet growth expectations, HSA will continue on its present business strategy.

What does it mean for me? Simple: if/when I can no longer find in the HSA catalogue the products I want, at a price I am willing to pay, I will stop buying.

If enough customers are of a similar mind, HSA will change its business strategy.

If not, HSA will continue to "re-brand" CC's into something I no longer identify with or enjoy.

Yes, I will miss smoking my favorite vitolas but at least I will have the peace of mind of knowing that I no longer give HSA the whip to beat me with.

Life will go on, a little poorer for the sacrifice of yet another simple pleasure on the altar of greed and stupidity.

[El Presidente]

Not quite; the image may be accurate but it is incomplete.

Customers are the ones that supply the whip ($) regardless of which of the two arms of HSA wields it.

As long as returns meet growth expectations, HSA will continue on its present business strategy.

What does it mean for me? Simple: if/when I can no longer find in the HSA catalogue the products I want, at a price I am willing to pay, I will stop buying.

If enough customers are of a similar mind, HSA will change its business strategy.

If not, HSA will continue to "re-brand" CC's into something I no longer identify with or enjoy.

Yes, I will miss smoking my favorite vitolas but at least I will have the peace of mind of knowing that I no longer give HSA the whip to beat me with.

Life will go on, a little poorer for the sacrifice of yet another simple pleasure on the altar of greed and stupidity.

And yet it does not need to be so. There can be a path of historical respect and future releases. You are right in that it will take consultation with the lovers of the Leaf on the ground. Right now there is little to none.

The requirements of HSA and Cigar Lovers are not mutually exclusive. A financially strong HSA with a happy and financially rewarded Tabacuba (factory workers + Cuban side cigar industry) should go hand in hand with their customers/ supporters world wide. We should work together for the betterment of all.

It is not difficult to achieve. It has not been done to date.

[Montaigut]

And yet it does not need to be so. There can be a path of historical respect and future releases. You are right in that it will take consultation with the lovers of the Leaf on the ground. Right now there is little to none.

The requirements of HSA and Cigar Lovers are not mutually exclusive. A financially strong HSA with a happy and financially rewarded Tabacuba (factory workers + Cuban side cigar industry) should go hand in hand with their customers/ supporters world wide. We should work together for the betterment of all.

It is not difficult to achieve. It has not been done to date.

From your mouth to the ears and hearts of HSA mate!

I don't know what the year on year financial reports of HSA look like. But I can tell you what they are in the luxury sector HSA wants to position itself in. LVMH Q1 2012 over Q1 2011 at + 25%, Burberry's at + 18% to name but a few. And the sector survived the 2008 crash essentially unscathed...

I have no reasons to think HSA is doing any worse in the sector than the other players. So what incentive does it have to change anything?

My money, what little I have, is on the table for the taking. That is my negotiation power. In front of me I see a marketing organization that knows the price of everything but the value of nothing (I wish it was my original quote). We have little in common. A passion for Cuban cigars would help to find a mutually satisfactory outcome for all; I am not even sure we share that. Now you know how I feel about marketing. LOL!

[Colt45]

First, I would petition FOH forum owner to change the forum name to Not-So-Much-Friends of Habanos.

Second, I would not produce a bunch of new robustos.

And last but not least, I'd give myself a massive bonus, take the money, and split.

[mazolaman]

points 2 to 4 I agree with, except, in point no 6 is the UK not allowed to part of the community program? much cigar history here.

I personally think that the reason alot of our faves are going is due HSA trying to appeal to the fat, besuited, moneyed amateur who wants a fatty in his mouth...like of the movies.

So, have a two pronged attack...make 55gauge rubbish for the fools, but continue to make the traditional cigars we all love...

Maybe they are already doing this, with the exception that they are getting rid of the cigars we love?

Do we really need any more robustos?

[CaptainQuintero]

-The opening up of all ICT products to all markets to give ciagarette smokers a quick and easy transition into cigars.

-All marque to have a Corona and Robusto as a minimum

-Each factory to have an in-house veteran (Such as Hamlet etc) responsible for quality control, with the power to deband all produced cigars if not up to standard

-Each marque must have at least one unique vitola eg LGC slim panetela, Punch Short Perfecto, QDO grand corona etc..

-Banishment of the Robusto Extra/double robusto. The churchil vitola is there, use it.

-No bands shall be allowed to have holographic/glossy/glitter/sparkly nonsense.

-All second bands banished.

-RE programme is entitled to one release every two years by each region