Habano News: Habanos could downsize some markets by 50% this Year

[NSXCIGAR]

26 minutes ago, SCgarman said:

Wasn't the Swiss market one of the largest? Almost all of the grey market vendors had their stock in Swiss warehouses. Switzerland was even called the Cuban cigar capital of the world. So the Chinese market gets the bulk of stock and all the other markets get the shaft? Talk about putting all your eggs in one basket. What do these LCdLH's sell? FWIW they will look like Rolex watch AD's. Lotsa glitzy retail space with no product to sell. What a winning business model! 

Yes, mainly due to low duties, ease of export and it's central European location. And yes, they are putting all their eggs in one basket. This is looking like the new owners are effectively capturing HSA for China. But you have to keep in mind that China's looking at anti-smoking efforts in the west that keep increasing and there's no indication the US market will open any time soon. The west's discretionary spending keeps declining. It's hard to deny the future of cigars in the west looks bleak. 

I agree with Rob that they're making a very aggressive move here and we'll see how it plays out. 

[El Presidente]

2 hours ago, NSXCIGAR said:

Well, that's a bit of an exaggeration. But it makes my point. How could stock be reduced a further 50% from near zero? 

My apologies. I misread your question as to what % PCC stock enters the secondary grey since 2022. 

In terms of reduction in supply since 2022, I would say 60% if you moved that needle back to 2019. 2020 was the beginning.