Interesting read from the Jefes de Habanos

[Habana Mike]

https://www.cigaraficionado.com/article/the-co-presidents?fbclid=IwAR1nIWoGkN32gPaOBMLML13M-UkNcflzWfovGrpL7VDC8kd2cRi2DvNovzU

[NSXCIGAR]

Thanks for the article. CA still occasionally does good work on Cuba news.

I always find it interesting when these head honchos drone on about wrapper having to be perfect, particularly for BHK and other super premiums.

Things that have never been said by anyone, ever:

"What I really love about BHK is how great the wrappers are."

"I'm returning this box of BHK because the wrappers aren't significantly better than Cohiba Siglo VI."

I'm not sure where they got the idea any BHK buyers care whether the wrapper is top 2% or top 1%. This coming from a company that has no qualms blowing out trash wrappers that were aged for 2 years only because they had been sitting around that long before they could figure out what the hell to do with them on a "Limited Edition" program with a 10% markup over regular production (in 2000).

Lowering the wrapper threshold from top 1% to top 2% (or top 0.1% to top 0.2% or whatever they use) would double BHK production and no one--literally no one--would care.

Instead they have a shortage of what is almost certainly their most profitable item.

[avaldes]

In reality, there are probably a long list of items in the supply chain that hold up production of any one product. By saying "we only want the best" they are appealing to the marketing of the brand. Just like other luxury products.

We all know that the reality is that if they critically evaluated the blockers in their process, they could vastly improve both the quality and the quantity of their products.

[ATGroom]

Quote

 By 2024, because of a new European Union regulation, we will also have tracers on every box of cigars from the time they leave Cuba, right down to the retailers’ shelves.”

Will be interesting to see how this will be implemented.

Imagine if you could log onto the Habanos verification site, put in your bar-code and see something like:

Montecristo No.4 dress box of 25 MEL DEC 19

20/1/20 - Departed Guanbacoa Cuba

24/1/20 - Arrived Pacific Cigar Hong Kong

3/2/20 - Arrived Pacific Cigar Sydney

12/2/20 - Arrived La Casa del Habano Melbourne

20/2/20 - Sold by La Casa del Habano Melbourne

 

Selling fakes is all about the story, so I'm sure they could explain away anything, but would be an interesting tool for the secondary market if nothing else.

[1LegLance]

So Imperial Brands is looking to sell off it's share of Habanos......can we start a FoH fund to buy it?

Anyone around here in Private Equity?

 

[NSXCIGAR]

On 6/11/2020 at 7:40 PM, 1LegLance said:

So Imperial Brands is looking to sell off it's share of Habanos......can we start a FoH fund to buy it?

Anyone around here in Private Equity?

Already been sold:

https://www.cigaraficionado.com/article/1-3-billion-deal-for-imperial-s-premium-cigar-business

[NSXCIGAR]

On 6/9/2020 at 7:47 PM, ATGroom said:

Will be interesting to see how this will be implemented.

Imagine if you could log onto the Habanos verification site, put in your bar-code and see something like:

Montecristo No.4 dress box of 25 MEL DEC 19

20/1/20 - Departed Guanbacoa Cuba

24/1/20 - Arrived Pacific Cigar Hong Kong

3/2/20 - Arrived Pacific Cigar Sydney

12/2/20 - Arrived La Casa del Habano Melbourne

20/2/20 - Sold by La Casa del Habano Melbourne

 

Selling fakes is all about the story, so I'm sure they could explain away anything, but would be an interesting tool for the secondary market if nothing else.

I don't know how they're going to get the retailers' info on the boxes. I suppose the distributors will be responsible for recording each box that goes to a particular retailer.

Obviously boxes sent to gray market vendors won't have that. Nothing will change in that regard.