JR Cigar to be the USA Habanos primary retailer?

[SCgarman]

If Cuba had a huge untapped source of oil or rare earth minerals I could see the embargo being lifted at anytime. However, since neither of those exist the lifting of the embargo won't occur until Fidel dies and the regime shows a willingness to move away from their anti-American communist rhetoric. The Obama administration is a very poor litmus test for true American foreign relations. Point being the deal they put together with the Iranians, which has very little domestic support, and probably won't last beyond his Presidency if it ever even gets implemented. The Obama agenda is not linked to public opinion or the will of the majority of Americans. Obama neither has the House or the Senate to propose and pass any legislation lifting the embargo. Additionally, even his use of Executive orders has limits - demonstrated by the 5th district court of appeals blocking his executive amnesty. To be honest, I don't think most Americans would really care if the embargo was lifted because Cuba is not a threat to the US. Politically, lifting the embargo means "forgiving" Cuba for allowing Russian nuclear weapons instillations to be built and manned less than 100 miles from Florida. I don't think anyone, but the most left-wing communist/socialist leaning politicans, want to attach their name to legislation forgiving that until those responsible (the Castro's) are gone.

P.S. I won't change my buying habits just because some group in the US will get distribution rights.

Thank you. Once again well said. You and I agree totally.

[NSXCIGAR]

U.S. Customs has a long history of seizing Cuban cigars. That hasn't changed, they just don't catch every shipment.

They have indeed, but I don't think they're very effective at it. Personally, I'm about 99% pass through for 14 years, and everyone I know is around the same.

My point was more to address conditions post embargo. If they're only seizing <10% of shipments now, when they're ostensibly illegal, I don't think when/if the embargo is lifted they're going to do much about seizing for unpaid duties alone.

[Habana Mike]

They have indeed, but I don't think they're very effective at it. Personally, I'm about 99% pass through for 14 years, and everyone I know is around the same.

My point was more to address conditions post embargo. If they're only seizing <10% of shipments now, when they're ostensibly illegal, I don't think when/if the embargo is lifted they're going to do much about seizing for unpaid duties alone.

Hate to say but when there's revenue at stake I think more attention will be paid.....

Think I'll start a gar-dog business!

[brschoppe]

I think that even if the embargo ended today you would not see Cuban cigars sold immediately in the US (atleast not by the names that we know them as today). Rob put out an article a few months ago that I thought of when I read this....in that many Cuban cigar labels are currently sold in the United States under the same name but by different companies using Dominican and Nicaraguan tobacco.. Yes, Altadis is one of those companies, but so is General Cigar. I am sure that there will be many legal battles that would need to be straightened out to see cigars under their Cuban brands in the United States. Also, because those brands are currently sold in the US with lesser tobacco, there is risk to brand name by having both brands exists on the market at the same time. I remember the original Dominican Cohiba's had a label very close to the Cuban product and sold at a premium because of it, but they were two very different products in terms of quality. Probably the one brand that could make the transition the easiest is Dunhill. They already have a premium brand and they have their own US Distribution channels already. They have also partnered to make a Cuban product already (though I believe that relationship ended badly if I am not mistaken).

[polarbear]

I think that even if the embargo ended today you would not see Cuban cigars sold immediately in the US (atleast not by the names that we know them as today). Rob put out an article a few months ago that I thought of when I read this....in that many Cuban cigar labels are currently sold in the United States under the same name but by different companies using Dominican and Nicaraguan tobacco.. Yes, Altadis is one of those companies, but so is General Cigar. I am sure that there will be many legal battles that would need to be straightened out to see cigars under their Cuban brands in the United States. Also, because those brands are currently sold in the US with lesser tobacco, there is risk to brand name by having both brands exists on the market at the same time. I remember the original Dominican Cohiba's had a label very close to the Cuban product and sold at a premium because of it, but they were two very different products in terms of quality. Probably the one brand that could make the transition the easiest is Dunhill. They already have a premium brand and they have their own US Distribution channels already. They have also partnered to make a Cuban product already (though I believe that relationship ended badly if I am not mistaken).

Pretty sure the Dunhill brand is owned by Altadis, so Cuban Dunhills isn't out of the question

[dangolf18]

I think that even if the embargo ended today you would not see Cuban cigars sold immediately in the US (atleast not by the names that we know them as today). Rob put out an article a few months ago that I thought of when I read this....in that many Cuban cigar labels are currently sold in the United States under the same name but by different companies using Dominican and Nicaraguan tobacco.. Yes, Altadis is one of those companies, but so is General Cigar. I am sure that there will be many legal battles that would need to be straightened out to see cigars under their Cuban brands in the United States. Also, because those brands are currently sold in the US with lesser tobacco, there is risk to brand name by having both brands exists on the market at the same time. I remember the original Dominican Cohiba's had a label very close to the Cuban product and sold at a premium because of it, but they were two very different products in terms of quality. Probably the one brand that could make the transition the easiest is Dunhill. They already have a premium brand and they have their own US Distribution channels already. They have also partnered to make a Cuban product already (though I believe that relationship ended badly if I am not mistaken).

Well legality is all I care about at this point. Dont really care whether I can buy them in the U.S.

[Smallclub]

Probably the one brand that could make the transition the easiest is Dunhill. They already have a premium brand and they have their own US Distribution channels already. They have also partnered to make a Cuban product already (though I believe that relationship ended badly if I am not mistaken).

It won't happen: Richemont, the company that now owns Dunhill, wants to distance itself from tobacco, and tobacco users.

Dunhill pipes don’t even mention the name “Dunhill.” The brand is now "White Spot".

The Dunhill pipe blends are made in Germany or Denmark. Dunhill dominican cigars are almost invisible in Europe…

[Smallclub]

Pretty sure the Dunhill brand is owned by Altadis, so Cuban Dunhills isn't out of the question

Not at all. Dunhill is owned by the Compagnie Financière Richemont SA

https://en.wikipedia.org/wiki/Richemont

[Habano]

The "post embargo" situation really means nothing as long as the embargo is STILL in effect and it in fact is. And with congress and the president always in deadlock and never able to agree on anything the embargo may be in place for another 10 years, who really knows.

Just because the US has taken a few baby steps towards relations with Cuba really means little. As I have said many times Obama has a year left in office and then he is gone! Nobody knows what the next President will do regarding Cuba. Everyone thinks they have the goose that will lay the golden egg!

Perfectly fine with the embargo staying in place.

[CigSid]

Perfectly fine with the embargo staying in place.

Agree with this 100%

[ThatAlfonso]

I'm not doing business with JR's if this happens. Sticking with our host.

Don't know how much will be inventoried with JR vs imported and simply distributed immediately by them but they are not well known for the quality of the sticks coming from their retail locations. I agree. The value that Rob and Co. offer in terms of weeding out the good from the bad and offering very good pricing is enough to get me to stick around post-embargo.

[Orion21]

Don't know how much will be inventoried with JR vs imported and simply distributed immediately by them but they are not well known for the quality of the sticks coming from their retail locations. I agree. The value that Rob and Co. offer in terms of weeding out the good from the bad and offering very good pricing is enough to get me to stick around post-embargo.

+1

[Elvis]

They have indeed, but I don't think they're very effective at it. Personally, I'm about 99% pass through for 14 years, and everyone I know is around the same.

My point was more to address conditions post embargo. If they're only seizing <10% of shipments now, when they're ostensibly illegal, I don't think when/if the embargo is lifted they're going to do much about seizing for unpaid duties alone.

Very true. Then again, as US Customs is part of Customs and Border Protection (CBP) I suspect they're primarily focused on terrorists first before "contraband". I don't think they were necessarily looking for Cuban cigars when they seized over 100,000 cigars at O'hare Airport in Chicago a few years back -- an event that you probably remember well.

For those that don't recall, just prior to this seizure the US Dept of Homeland Security (DHS) had placed a ban on parcels over 16oz on passenger aircraft. This was in response to terrorist attempts to ship bombs made using printer toner cartridge.

The seized Cuban Cigars were all from Swiss vendors that had arrived on a cargo plane and were subjected to additonal scrutiny. This put at least one major Swiss vendor out of business.

[Elvis]

Hate to say but when there's revenue at stake I think more attention will be paid.....

Think I'll start a gar-dog business!

Absolutely concur. The cost of inspection as compared to revenue generated is a key motivator and US duties/tariffs seem relatively low in comparison to other countries. Not much incentive there.

However, if tarrifs go up or cost of inspection goes down, that could be a game changer.

[planetary]

I find it remarkable that it's more likely for marijuana will be legally on sale in my state in the next 12-18 months than Habanos. Crazy world.

[Orion21]

I find it remarkable that it's more likely for marijuana will be legally on sale in my state next year in the next 12-18 months than Habanos. Crazy world.

It is a crazy world, but weed makes people and the states lots of money...

[brschoppe]

I find it remarkable that it's more likely for marijuana will be legally on sale in my state in the next 12-18 months than Habanos. Crazy world.

And it will probably be easier to find a place to smoke weed than cigars. It is interesting that at the same time that government bodies are cutting back on where you can smoke legally, they are increasing the products that can be smoked. I guess they are hoping everybody just does pot brownies.

[ThatAlfonso]

I find it remarkable that it's more likely for marijuana will be legally on sale in my state in the next 12-18 months than Habanos. Crazy world.

Well, when you put it that way...

[NSXCIGAR]

It will be quite interesting to see how it all unfolds post embargo, to be sure. It will take years, possibly decades to shake out.

I will say that just because Habanos will be available at retailers in the US doesn't mean they will necessarily be cheaper. Remember, prices are all controlled from top-down for the most part. Right now, we can buy from many low-overhead online retailers all over the world and Rob still has prices that are comparable and often unbeatable at times, especially considering the care and attention he provides in stock selection.

I'm lucky in the US to live 20 minutes from a LCDH so the lifting of the embargo means very little to me personally but I do hope the lifting of the embargo introduces the US to the wonderful world and rich tradition of CCs and furthers the popularity of our hobby.