Why U.S. cigar companies can’t wait for you to light up Cuban cigars

[Smallclub]

Habanos no longer <<need>> to be aged.

Most of the vitolas that really needed several years are discontinued and, as already stated, many 2013-2014 cigars already smoke great.

[Jah]

Working for one of the busiest cigar shops in the country, I can tell you that Americans are extremely excited about getting in Cubans, in fact, I get at least 20 customers a day inquiring about when we'll be able to get them.

With that said, the quality of Cubans I've smoked over the past year has been phenomenal, so I personally can't wait to get them in stock. Prices won't dissuade consumers here, they're ready and willing to spend the cash.

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[Colt45]

With the embargo lifted, for how long?

I couldn't possibly know. Even though the farmers are relatively autonomous, the government is their sole customer and has a monopoly on the production of Cuban cigars, with Imperial Tobacco having a fifty percent stake in that monopoly - I can't imagine they'll be quick to invite anyone else to the party.

Ending the embargo does not mean an automatic change in the Cuban government....

[Fosgate]

Working for one of the busiest cigar shops in the country, I can tell you that Americans are extremely excited about getting in Cubans, in fact, I get at least 20 customers a day inquiring about when we'll be able to get them.

With that said, the quality of Cubans I've smoked over the past year has been phenomenal, so I personally can't wait to get them in stock. Prices won't dissuade consumers here, they're ready and willing to spend the cash.

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I sit and smoke with the local owner here also and for years he has been stating how many people come in asking for CC's every day. Higher number now but still. I think many would be willing to buy Cubans, at least until they see the price. I would be willing to bet they would near double from what you see priced on other sites by the time you add U.S. taxes and price for the new excitement of the release. Most won't have a clue of CC history and just see the price difference of a RYJ and a DC RYJ and buy the DC. Some will buy not having a clue but will buy just because they are expensive and they can parade them off in front of their buds.

[Jah]

I sit and smoke with the local owner here also and for years he has been stating how many people come in asking for CC's every day. Higher number now but still. I think many would be willing to buy Cubans, at least until they see the price. I would be willing to bet they would near double from what you see priced on other sites by the time you add U.S. taxes and price for the new excitement of the release. Most won't have a clue of CC history and just see the price difference of a RYJ and a DC RYJ and buy the DC. Some will buy not having a clue but will buy just because they are expensive and they can parade them off in front of their buds.

Davidoff, Padron and Fuente have no problem selling out of their high end cigars, I can't imagine that price would be an issue with Cuban cigars in the US.

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[Fosgate]

Davidoff, Padron and Fuente have no problem selling out of their high end cigars, I can't imagine that price would be an issue with Cuban cigars in the US.

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Now that I think about it your probably right. The guys that really balk at the price of CC's are probably smoking Swishers and Backwoods now. In all honesty if a box of CC's that are now $250 for me are $500 a year from now, I would have to seriously reconsider or buy maybe 10 instead of a box of 25. If that same box is $750 a year from now, I'm out and will go back to NC's

[Jah]

Now that I think about it your probably right. The guys that really balk at the price of CC's are probably smoking Swishers and Backwoods now. In all honesty if a box of CC's that are now $250 for me are $500 a year from now, I would have to seriously reconsider or buy maybe 10 instead of a box of 25. If that same box is $750 a year from now, I'm out and will go back to NC's

From what I see, I'm doubtful there would be a price increase. If Habanos SA intends to gain a 70% eventual market share as they've stated, they're going to have to keep prices reasonably competitive to the NC market. Add in the fact that they're guaranteed to sell a **** ton of cigars in the first few years post embargo, they'd have no reason to hike up prices.

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[Fosgate]

From what I see, I'm doubtful there would be a price increase. If Habanos SA intends to gain a 70% eventual market share as they've stated, they're going to have to keep prices reasonably competitive to the NC market. Add in the fact that they're guaranteed to sell a **** ton of cigars in the first few years post embargo, they'd have no reason to hike up prices.

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Have you seen how much taxes add to CC's out of Canada selling to Americans now? Add taxes to what we already get and then increased market demand and we are there or higher...at least for a short time.

[Notsocleaver]

Any cigar smoker who has spent 15 minutes on the internet knows that Gurkas are a joke. If Kaizad Hansotia's business model can weather the years of internet hate his brand has received, it can probably handle an influx of Cuban cigars just fine.

[canadianbeaver]

For those of us who are already in the Cuban market, we have been discussing this for months/years and so many of us are American it makes no difference. We buy/sell and trade with each other. The product we deal with will be vintage enough from stockpiled quality, so potate potati.

The new buyers will

- not know the difference and just want boxes "made in Cuba" if it is important to them

- buy hybrid product offered by Senyor Ghurkha and his ilk, like Senyor Fuente and Senyor Davidoff. Just you wait. No more Cuban Seed - Cuban Leaf! The real thing.

- The biggest issue will be the fight between the Cohiba/Cohiba Red Dot stuff and these names. Apparently in the works for years.

My opinion

We here at FOH and other forums, IMO totally overblow the size of the market of the $15+ cigar. Again, IMO, most cigar smokers spend less than $3 a unit and will never touch a $10 cigar other than on their wedding day.

The opened Cuban market will add a new line that will excite much like the craft beer business.

[Jah]

Have you seen how much taxes add to CC's out of Canada selling to Americans now? Add taxes to what we already get and then increased market demand and we are there or higher...at least for a short time.

Taxes in Canada are much higher than most US states.

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[Bennettjohnl]

Taxes in the U.S. vary widely state to state. Having said that the various politicians all want their bite of the apple. Federal tax for cigars is capped at 40.26 cents per stick while the state rates vary. Link below shows individual state rates. I didn't dig too much so I wouldn't be surprised if rates had gone higher.

http://www.taxadmin.org/fta/rate/otp.pdf

[Orion21]

Here is my slant on this:

The Non-Cuban producers have spent decades trying to make a product that is different from Cuban cigars. Just look at the glut of cigars coming out of Nicaragua, the Dominican Republic etc. with triple ligero and maduro wrappers as black as night. Aside from Fuente, Davidoff and AVO most NC's have been produced to provide a cigar with huge amounts of spice, nicotine and full+ body. The average American smoker has become accustomed to this profile. The average American cigar smoker does not buy boxes, but singles of cigars they have grown to like. When given the opportunity to try their first Cuban they will absolutely jump at the chance . . . to buy a single. This single cigar will be chosen based on their limited knowledge of Cuban cigars and most likely will be a Montecristo No. 2 because everyone has heard of that cigar. The cigars they will be choosing from will be new production, stored is overly humidified conditions at local B&M's and that's how opinions will be set. Knowing the average cigar smoker they will compare this cigar to their current go-to and it won't be anywhere as robust, spicy or full bodied. They will fail to consider that Cuban cigars are different animals than NC's and complain to their friends that they just wasted $15 on an "overrated Cuban" and go back to smoking their slurry died maduro wrappered ligero bombs and that's fine with me.

I believe that NC producers are confident that Cuban cigars won't have a meaningful impact on their customers over the long run. It will solidify many, distract some and convert a minority. All the while they are expanding to Europe, Asia and other parts of the world who for decades have only had access to Cuban cigars. They are expanding because their different and having success, while Cuba slowly moves toward the NC model with larger thicker cigars, now having released their first maduro line Partagas. It's a good time to be an NC cigar maker and a time of flux for Cuban cigar lovers - just ask PigFish

[deejank]

scared of seeing singles prices like this at the bars:

[btp1979]

scared of seeing singles prices like this at the bars:

I'd just be happy to find a Bar where I can still smoke in the US lol!

[Jah]

Here is my slant on this:

The Non-Cuban producers have spent decades trying to make a product that is different from Cuban cigars. Just look at the glut of cigars coming out of Nicaragua, the Dominican Republic etc. with triple ligero and maduro wrappers as black as night. Aside from Fuente, Davidoff and AVO most NC's have been produced to provide a cigar with huge amounts of spice, nicotine and full+ body. The average American smoker has become accustomed to this profile. The average American cigar smoker does not buy boxes, but singles of cigars they have grown to like. When given the opportunity to try their first Cuban they will absolutely jump at the chance . . . to buy a single. This single cigar will be chosen based on their limited knowledge of Cuban cigars and most likely will be a Montecristo No. 2 because everyone has heard of that cigar. The cigars they will be choosing from will be new production, stored is overly humidified conditions at local B&M's and that's how opinions will be set. Knowing the average cigar smoker they will compare this cigar to their current go-to and it won't be anywhere as robust, spicy or full bodied. They will fail to consider that Cuban cigars are different animals than NC's and complain to their friends that they just wasted $15 on an "overrated Cuban" and go back to smoking their slurry died maduro wrappered ligero bombs and that's fine with me.

I believe that NC producers are confident that Cuban cigars won't have a meaningful impact on their customers over the long run. It will solidify many, distract some and convert a minority. All the while they are expanding to Europe, Asia and other parts of the world who for decades have only had access to Cuban cigars. They are expanding because their different and having success, while Cuba slowly moves toward the NC model with larger thicker cigars, now having released their first maduro line Partagas. It's a good time to be an NC cigar maker and a time of flux for Cuban cigar lovers - just ask PigFish

The average cigar smoker (including non-Americans) mostly buys singles. With that said, there's still plenty of people that horde boxes of their favorite NC smokes.

The knowledge of Cuban cigars from people already smoking them here in the US is pretty on par with the rest of the world. Most people have already had a Montecristo no. 2 or RyJ of some sort and know what's coming. I'm not sure what makes you think that most of the cigars will be stored in terrible conditions, of course there will be the occasional hole in the wall that has poor storage, but that's no different than the rest of the world.

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[laficion]

Hi all,

I really don't see what the fuss is all about.Frist,the American smoker is not made for the Cuban cigar,he pefers a lot of the N.C.

spice power in his cigar then the overall evolutive delicate tastes,(Taught to him by the N.C. makers in general.) Second, his tastes were never in a real Cuban cigar (look at the Clear Havanas and their success). And third,it will pass the trend of ,"The Forbidden Fruit" ,in a short time after the end of the Embargo.What I regreat the most Is Cuba Itself, I would like to see Cuba a lot more leader then Follower when It comes to the U.S. market,(Look at the American Ring Gauges.),and the new Cuban cigars and the rest.

Guy

[Jah]

Hi all,

I really don't see what the fuss is all about.Frist,the American smoker is not made for the Cuban cigar,he pefers a lot of the N.C.

spice power in his cigar then the overall evolutive delicate tastes,(Taught to him by the N.C. makers in general.) Second, his tastes were never in a real Cuban cigar (look at the Clear Havanas and their success). And third,it will pass the trend of ,"The Forbidden Fruit" ,in a short time after the end of the Embargo.What I regreat the most Is Cuba Itself, I would like to see Cuba a lot more leader then Follower when It comes to the U.S. market,(Look at the American Ring Gauges.),and the new Cuban cigars and the rest.

Guy

The US is the largest market in the world for cigars, the majority of regular US smokers have had Cubans and enjoy their flavor. Once the embargo is lifted, Habanos SA will most likely focus on the US as their main market and cater to the tastes of those consumers. I'm not sure where you're getting your information that the American smoker isn't made for the Cuban cigar, it's completely untrue.

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[atlharp]

Remind me again of that great non-Cuban Churchill or Double Corona Hansotia....

These guys blend **** peppery and harsh on the pallete (and my sinuses) and have the nerve to say Cubans aren't complex. Yeah.... Pull on the other one, maybe there's bells attached.

[SCgarman]

Hi all,

I really don't see what the fuss is all about.Frist,the American smoker is not made for the Cuban cigar,he pefers a lot of the N.C.

spice power in his cigar then the overall evolutive delicate tastes,(Taught to him by the N.C. makers in general.) Second, his tastes were never in a real Cuban cigar (look at the Clear Havanas and their success). And third,it will pass the trend of ,"The Forbidden Fruit" ,in a short time after the end of the Embargo.What I regreat the most Is Cuba Itself, I would like to see Cuba a lot more leader then Follower when It comes to the U.S. market,(Look at the American Ring Gauges.),and the new Cuban cigars and the rest.

Guy

For someone who resides in France you sure make an ignorant generalization about us cigar folks in the U.S. Surely it is your opinion only and has virtually no fact. I'm quite disappointed you would make such an obtuse statement.

[skarolla]

How could the meagre Cubans compete with the luxury $2,000 MSRP sticks that Ghurka put out.