The US would buy $400m worth of Cuban cigars if not for the Embargo

[Ryan]

At least according to Jorge Luis Fernández.

Still it's an interesting opinion.

http://www.cubadebate.cu/noticias/2014/10/22/eeuu-compraria-habanos-de-cuba-por-400-millones-de-dolares-al-ano-sin-bloqueo/#.VEi_uiLF98E

[Ryan]

Interesting numbers in that artcle as follows.

Total worldwide unit sales of premium cigars 400 million.

Of which Americans smoke 260-270 million

Habanos claims 70% of the worldwide premium cigar market (280 million units).

That leaves sales of 120 million non-cuban premium cigars worldwide yearly (400 total - 280)

Yet Americans smoke 260 million premium cigars per year.

So the article, unless I have my numbers wrong, is implying that Americans smoke at least 140 million Cuban cigars per year (260 total American smoked - 120 million total non cuban premium cigars sold).

That is with the assumption that Americans consume every non-cuban premium cigar made, which of course is untrue.

So at least 54% of premium cigars smoked by Americans are Cuban.

That is what that article is stating according to the numbers it provides.

[Optic101]

Thanks for the article Ryan.

Later in the article it is mentioned that the annual sales of Habanos SA in 2013 was $447m.

Not to sure how he is calculating but the numbers are a bit off IMO.

...... Ok we do not know about their "Business Plan" .....

Below the english version.

Cuba could get each year nearly 400 million dollars from the sale of premium cigars in the United States if there blocking the echo nomic to the island , an official source said.

Repealed that measure, the US smoking could become the main consumers of cigars, said Jorge Luis Fernandez, vice president of marketing Habanos SA

At a press conference, Fernandez said that Cuba could sell about 170 million premium cigars (twisted by hand) on the market for the United States.

The transaction would report annually about 380 million dollars to the national economy, he said.

Fernandez explained that the global market for premium snuff is in the order of 400 million units, and the US is that of greater consumption with 260-270 million, representing nearly 70 percent of the total.

The American fans buy cigars snuff in other nations, not being available in the network of shops, tourist facilities and international airports.

The island official also said Cuba must disburse large amounts of foreign exchange for the acquisition of plant protection products in third countries, which could negotiate directly in the US at a lower cost.

According to Habanos SA, the international sales of cigars Cuban revenues in 2013 accounted for $ 447 million, 8.0 percent higher than expected.

Habanos SA was founded in 1994 and is the result of the company owned 50 percent by the Cuban state enterprise Cubatabaco and Altadis, belonging to the group English Imperial Tobacco Group PLC.

To date it has 27 brands produced entirely by hand, which are distributed in over 150 countries.

Spain continues to lead in sales and France is second place, while behind China placed Germany, Switzerland, Cuba, Lebanon and United Arab.

Executives argue that the joint venture "Habanos" maintains its share of the international market for over 70 percent as the market leader "Premium".

[santela]

Interesting numbers in that artcle as follows.

Total worldwide unit sales of premium cigars 400 million.

Of which Americans smoke 260-270 million

Habanos claims 70% of the worldwide premium cigar market (280 million units).

That leaves sales of 120 million non-cuban premium cigars worldwide yearly (400 total - 280)

Yet Americans smoke 260 million premium cigars per year.

So the article, unless I have my numbers wrong, is implying that Americans smoke at least 140 million Cuban cigars per year (260 total American smoked - 120 million total non cuban premium cigars sold).

That is with the assumption that Americans consume every non-cuban premium cigar made, which of course is untrue.

So at least 54% of premium cigars smoked by Americans are Cuban.

That is what that article is stating according to the numbers it provides.

Yeah as I was reading this I was like "this can't be right". Also I don't believe Americans smoke more Cubans than NCs. I have to question the credibility of the article when simple math doesn't add up.

[Ryan]

I think what might be distorting the numbers, though the article does not state it, is in the last sentence.

"Executives argue that "Habanos" maintains its share in the international market of over 70 percent of the Premium Market."

That 70% very likely excludes the US market.

[garbandz]

Thanks for the Laugh of the Day,not as funny as usual,but comical none the less.........

The whole article is rife with errors,why do media airheads publish such garbage?

Another case of the media making an expert out of thin air......

[Ryan]

I think what might be distorting the numbers, though the article does not state it, is in the last sentence.

"Executives argue that "Habanos" maintains its share in the international market of over 70 percent of the Premium Market."

That 70% very likely excludes the US market.

I'm quoting myself because, with a little thought, of course that 70% has to exclude the US market.

If 130-140 million premium cigars are smoked outside the US and Habanos make up 70% of that, that's 95 - 98 million cigars.

Those numbers make much more sense.

Especially when, during the Habanos Festivals, I hear whatever Habanos director who isn't yet in prison, talk about exports of 75 -90 million units.

[earthson]

If the embargo lifted, can you imagine how many shite cigar manufacturers would disappear immediately?

[vivalanation734]

If the embargo lifted, can you imagine how many shite cigar manufacturers would disappear immediately?

Yes, but I also think it could hurt quality manufacturers in the States. Quality of Habanos would also take a downward turn... And the prices would go through the roof.

[SCgarman]

Its all a moot point because embargo is going nowhere and will probably still be in effect when our grandchildren are adults. These articles based upon hypothetical situations are just silly in my opinion.

[gtejada]

I believe when the embargo is lifted the demand for CCs in the US will decrease a bit. A lot of the CCs phenomenon amongst non-true enthusiasts (for lack of better term) in the US is the fact that they are so scarce, the enigma of their authenticity or taste and that fact one can not easily obtain them. The Dominicans, Nicaraguans, Hondurans are making great cigars these days. People seem to have this special desire in obtaining things that are not readily available. I think the lift of the embargo at first will increase sales and soon after hurt sales in the US. My .02!