Habanos S.A. Plan for the US market


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December 17, 2014 changed everything...

Uh, it did? 

Embargo ain't going anywhere soon. 

Also, article written prior to the new FDA regs.

Expect nothing to change in the way of how cigars are produced, marketed and distributed in Cuba for a long time, at least as long as the Castros still breathe.

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I don't see habanos forking up the 250k per vitola to get on the market even if the embargo dropped.

I'm also not too sure the FDA is keen on allowing any new products on the market, though the tin foil hat may be on a bit too tight on that one.

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6 minutes ago, skalls said:

I don't see habanos forking up the 250k per vitola to get on the market even if the embargo dropped.

I'm also not too sure the FDA is keen on allowing any new products on the market, though the tin foil hat may be on a bit too tight on that one.

Bingo. Spot on!

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50 minutes ago, skalls said:

I don't see habanos forking up the 250k per vitola to get on the market even if the embargo dropped.

I'm also not too sure the FDA is keen on allowing any new products on the market, though the tin foil hat may be on a bit too tight on that one.

Makes one wonder if the FDA factored in the potential windfall from opening the embargo. Things that make you say hmmmm...........

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And the current US market Cohiba, Romeo, etc will say what about cigars being sold under the same name in the US market? 

 

I dont see any way it happens, not in the forseable future. 

And as Americans WE dont want it to.... who the hell wants to pay taxes and everything else on a product we get at a fraction of what it would cost if legal here? 

 

If you are an American, and you love CCs, the embargo remaining in place is the absolute best case scenario. 

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3 minutes ago, LandCruiser said:

And the current US market Cohiba, Romeo, etc will say what about cigars being sold under the same name in the US market? 

 

I dont see any way it happens, not in the forseable future. 

And as Americans WE dont want it to.... who the hell wants to pay taxes and everything else on a product we get at a fraction of what it would cost if legal here? 

You should have to suffer like the rest of us

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No one will ever buy a cigar from General Cigar Co. again....Rocky Patel and the likes would also suffer greatly. Personally I hope CCs become legal to own/buy, just not available for sale in the US itself.


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18 minutes ago, Hutch said:

I'm an American. I love Cuban cigars. But I'd like to see the Cuban people be able to earn a livable wage, reap the rewards for their efforts, and be free of the current form of government. Just a couple of things more important than the tax I pay on cigars :)

If you think that money would be going to them.... You are not just smoking cigars...

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1 hour ago, LandCruiser said:

If you think that money would be going to them.... You are not just smoking cigars...

Spot On! I would LoL, but it is sad! My theory is that there are also a lot of interests in central American who will/are lobbying for the embargo to stay in place.  I walk into a cigar store in the US and it's outrageous what they want for a cigar that doesn't hold a candle to the quality of CC tobacco!

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Anyone has to be crazy to think that Imperial Tobacco/Habanos will allow any FDA regulations, payments, trademarks etc. to stop them from entering the largest premium cigar market in the world. They have been gearing up for this day for a long long time. Money will be spent in large sums to ensure their investment pays off including trademark payments, FDA payments etc. The money wont be coming from Habanos either it is all Imperial Tobacco. Hence their reorganization of the Altadis USA, the purchase of JR Cigars/Cigar Inn, the expansions of the Montecristo Lounges with other B&M's, focus on internal distribution. Its part of the grand plan. Every current cigar maker in the USA who doesnt sell another cigar outside of the USA will tell you they aint coming and they are going to face issues with the FDA thats their plan.  

 

 

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I think a HUGE issue is the current back and forth court battle of the cigar copy names here in the US that include Monte Cristo, Romeo Y Julieta, Cohiba, it goes on and on...I would guess the level of counterfeits will be even larger the day authentic CC's are available here in the US.

 

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  • 2 weeks later...
On 9/13/2016 at 1:36 PM, cigarsdelcuba said:

Anyone has to be crazy to think that Imperial Tobacco/Habanos will allow any FDA regulations, payments, trademarks etc. to stop them from entering the largest premium cigar market in the world. They have been gearing up for this day for a long long time. Money will be spent in large sums to ensure their investment pays off including trademark payments, FDA payments etc. The money wont be coming from Habanos either it is all Imperial Tobacco. Hence their reorganization of the Altadis USA, the purchase of JR Cigars/Cigar Inn, the expansions of the Montecristo Lounges with other B&M's, focus on internal distribution. Its part of the grand plan. Every current cigar maker in the USA who doesnt sell another cigar outside of the USA will tell you they aint coming and they are going to face issues with the FDA thats their plan.  

 

 

I'd tend to agree with this POV with a few caveats.  Imperial is a $40B public company and their Tabacalera division owns a 50% stake in Habanos SA.    

The quick, easy and relatively cheap entryway into the USA (if embargo lifted) would be to introduce a "new" CC brand to avoid any issues with trademarks which I think (unless they are willing to fork out some really big bucks (in the B's range) could take years and years tied up in Federal court.... 

In my past life I was an executive in importing/marketing luxury fine spirits into the USA (Remy Martin Cognac).  My strategy if I was marketing CC to the USA for the first time legally after so many years would be to create a blend that the USA "wants" and then supply the full range of vitolas under a single KNOWN brand name/logo like "Habanos"...They own this name and the FDA costs would be manageable.  Over time they would release special editions and differing blends but immediately they could potentially capture a huge market share if the product quality delivered.

I think Piggy also mentioned something like this in one of his threads........that they have been culling down the brands/lines over time...

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