Habanos Sets Sales Record Thanks To Asia

[El Presidente]

Habanos, hit a record high with $827 million in sales last year, driven mainly by wealthy consumers in Asia, especially China.

Habanos' impressive 16% revenue surge in 2024 underscores the rising desire for luxury cigars among Asia’s elite. Asian markets, led by China, made up nearly a quarter of global sales, reinforcing the cigar's prestige as a luxury item.

 

https://www.reuters.com/business/retail-consumer/cubas-top-cigarmaker-breaks-record-with-sales-827-million-2024-2025-02-24/

 

[Marco_011t556]

People care about quality rather than the price. I wish Cuba could maintain better quality...higher price but lower quality is really disappointing! 🤣🤣

[unaslob]

Clearly they are succeeding so we can expect more of the same. I’m not sure what the CC world looked like pre covid as I found it post covid. I wonder how their growth compares to the NW cigar groups? Is their growth part of overall part of luxury cigar market growth vs Cubans just doing better? 

[El Presidente]

7 hours ago, unaslob said:

I wonder how their growth compares to the NW cigar groups? Is their growth part of overall part of luxury cigar market growth vs Cubans just doing better?

Financially, Habanos S.A. on those numbers are kicking arse. They are headline figures only. There is no breakdown (nor will there be) on what of their portfolio is contributing to those numbers. However, you have nailed it in that "we can expect more of the same".

The premium cigar market is growing. However it is safe to assume that while Habanos S.A. may have kept industry pace in stick numbers, they have outperformed all in ROI. 

[BlueWS]

Are the Chinese really smoking that many cigars now or is the draw towards Cuban Cigars simply gift giving? Give someone connected to the Party a $5,000 box of BHKs that sit on a shelf to curry favor?

[El Presidente]

7 hours ago, BlueWS said:

Are the Chinese really smoking that many cigars now or is the draw towards Cuban Cigars simply gift giving? Give someone connected to the Party a $5,000 box of BHKs that sit on a shelf to curry favor?

Take this with a pinch of salt:

• In 2024, the number of people living in the middle class and above in China amounted to over 1.13 billion.
• In 2024, China had the highest number of billionaires in the world, with 814 billionaires. As of 2023, there were 1,019 billionaires in the Asia-Pacific region.
• According to Credit Suisse estimates, the number of dollar-millionaires residing in China totalled 6.2 million individuals, ranking second after the United States in the world. In 2022, there were approximately 9.77 million millionaires in the Asia-Pacific region. This is projected to increase to about 15.41 million by 2027, which would be a 58% increase. According to recent data, the Asia Pacific region is currently experiencing the fastest growth in the number of millionaires globally.

It doesn't take a rocket scientist to see why the Asia Pacific region is a target rich environment for "luxury" brands. 

[BoliDan]

Yay, more demand. Sigh 😢

[TacoSauce]

16 minutes ago, El Presidente said:

It doesn't take a rocket scientist to see why the Asia Pacific region is a target rich environment for "luxury" brands. 

My business contacts in China have been talking about a recessionary feeling in China over the past year. They perceive that spending is way down compared to previous periods. If this is true, then just wait until China comes out of the recession! Demand will bounce higher in a hurry!

[El Presidente]

[SCgarman]

When you simply triple and quadruple prices on the same product, naturally the numbers will look impressive. Doesn't take rocket science. 🤪

[JohnS]

Habanos S.A. Reports $827 Million in Revenue for 2024, a 14.7 Percent Increase

February 24, 2025 - Charlie Minato

Habanos S.A.—the Cuban cigar monopoly—says that it generated $827 million in 2024, a 14.7 percent increase over the previous high set in 2023.

The numbers were announced at the start of the Festival del Habano XXV, the annual Cuban cigar festival in Havana. These figures are vitally important for Cuba; last week, President Miguel Díaz-Canel said that tobacco was the country’s main export.

From 2017-2023, Habanos S.A. generated revenue in the $500-570 million range. In 2020, Imperial Brands, plc sold its 50 percent share of Habanos S.A. to a group of Asian investors. Less than two years later, Habanos S.A.—which controls the global supply of Cuban cigars—announced historic price increases, doubling the prices of Cohiba overnight and tripling the prices of some Trinidads. Those price increases, reportedly due to pressure from the new Asian owners, have paid off, literally. This is the second year in a row that Habanos has added more than $125 million in revenue to its books.

“Habanos, S.A.’s achievements in 2024 reflect the international recognition of our unique origin, the strength and prestige of our brands, and, of course, the passion of everyone involved in the fascinating world of Habanos,” said Maritza Carrillo González and Luis Sánchez-Harguindey Pardo de Vera, the company’s co-presidents, in a press release. “And this is demonstrated not only by these fantastic results, but also by the demand we have had to attend this 25th Habano Festival, an event that continues to provide unparalleled experiences for premium tobacco enthusiasts worldwide.”

While the price increase percentages have slowed down in 2024 and 2025, the Cuban cigar company is increasingly focused on cigars that cost hundreds of dollars. This week’s festival is highlighted by the Cohiba Behike BHK 58, a cigar that will inevitably cost at least $400 in the cheapest market. A press release says that attendees of this festival will be able to purchase a three-pack of the H. Upmann Magnum 50 Gran Reserva Cosecha 2019, a five-pack of the Romeo y Julieta Amantes or a four-pack of the Cohiba Behike line, moves that will likely generate millions in added revenue.

When Imperial sold its stake to a group of undisclosed Asian investors, many assumed that it would mean that Habanos S.A. would focus its business on China. While China remains the company’s top country by sales, Europe still accounts for more than half the sales.

As far as countries, Habanos S.A. says its largest markets by sales revenues are, in order: China, Spain, Switzerland, the United Kingdom and Germany. Those are the same top five countries as 2022, though the U.K. and Germany have swapped spots.

Market-wise, Europe continues to be the top-selling area for Cuban cigars:

• Europe — 54 percent (56 percent in 2023)
• Asia Pacific — 24 percent (21 percent)
• Americas — 12 percent (13 percent)
• Africa and the Middle East — 10 percent (10 percent)

Because of the outsized lack of supply of Cuban cigars, these numbers are somewhat irrelevant. If Habanos S.A. wanted to make a specific market more important, it could easily supply that market with more cigars.

Source: https://halfwheel.com/habanos-s-a-reports-827-million-in-revenue-for-2024-a-14-7-percent-increase/447655/

[NotLawReview]

16 hours ago, TacoSauce said:

My business contacts in China have been talking about a recessionary feeling in China over the past year. They perceive that spending is way down compared to previous periods. If this is true, then just wait until China comes out of the recession! Demand will bounce higher in a hurry!

I've been hearing the same. And my friends in the wine industry have recently witnessed their numbers in China falling off of a cliff.

[El Presidente]

20 hours ago, NotLawReview said:

I've been hearing the same. And my friends in the wine industry have recently witnessed their numbers in China falling off of a cliff.

In terms of wine to China, Australia was effectively banned for three years until May 2024 when the "ban" was lifted by the Chinese Govt. In less than 12 months Australian wine exports to China in terms of volume is No2 behind France. That may explain some of the falling numbers elsewhere. 

However, there has been a significant luxury good downtrend in China since last quarter 23/first quarter 24. 

For Habanos however, if China is 26% of sales you are only looking at 15 million cigars (estimate) in the last year. Given the scale of the Asia Pacific region and its "wealthy" demographic trend, it is a drop in the ocean of potential. 

Caveat. That number wouldn't take into account side door exports into China from around the world. That 26% could actually be 40%. Hard to know. 

[BlueWS]

They lie about every government statistic there is. We're starting to see that over here too! But I digress.

[BrightonCorgi]

They should incrementally keep increasing prices.  Looks like it's working to their benefit.

[Blazer]

I "think" I've read that the wealthy Asian customer has been the primary driver of increased sales over the last few years. My naive question: is that all due to personal use or has there been evidence of their purchasing for resale?

[SCgarman]

35 minutes ago, BrightonCorgi said:

They should incrementally keep increasing prices.  Looks like it's working to their benefit.

They most certainly will! Why stop now? Soon a box of PSD4 will be $800usd. 

[MrBirdman]

8 hours ago, BlueWS said:

They lie about every government statistic there is. We're starting to see that over here too!

It's funny, this seems to be the one piece of info from the government people don't doubt. Understandable, since it aligns with what we're seeing on the ground.

I suspect that the vast majority of that growth for the past year or two is coming from premium lines, and that the core lines aren't seeing much revenue growth. There's just no way they're selling Monte 4's for nearly $400 at a clip anywhere close to a few years ago. I think long term the bigger concern for smokers is less price increases (they're already pushing the limits of everything except maybe Cohiba) but more just unavailability, as tobacco and roller time is redirected to new premium lines. 

We'll see. 

[BrightonCorgi]

6 hours ago, Blazer said:

I "think" I've read that the wealthy Asian customer has been the primary driver of increased sales over the last few years. My naive question: is that all due to personal use or has there been evidence of their purchasing for resale?

Is there any margin to resell at price? Would you buy from a Chinese reseller? Is there a Chinese domestic market for reselling cigars?

[ha_banos]

5 hours ago, MrBirdman said:

It's funny, this seems to be the one piece of info from the government people don't doubt. Understandable, since it aligns with what we're seeing on the ground.

I suspect that the vast majority of that growth for the past year or two is coming from premium lines, and that the core lines aren't seeing much revenue growth. There's just no way they're selling Monte 4's for nearly $400 at a clip anywhere close to a few years ago. I think long term the bigger concern for smokers is less price increases (they're already pushing the limits of everything except maybe Cohiba) but more just unavailability, as tobacco and roller time is redirected to new premium lines. 

We'll see. 

Why not? They almost always sell out on 2424 at over 420$ (btw £600 here...and only 1 left in stock! Quick!)

6 hours ago, SCgarman said:

They most certainly will! Why stop now? Soon a box of PSD4 will be $800usd. 

£879 here now...($1116.10)

[Hammer Smokin']

Definitely not duty free to all buyers outside of Australia. Really, duty to everyone, aside from the good ole Ewe S of A.

[BrightonCorgi]

Duty Free airport prices are best global price guide IMO since they available to everyone without jumping through hoops. Unfortunately, they've been on the barren side. Anyone been through Beirut or Dubai airports recently? How was the stock?

[MrBirdman]

5 hours ago, Hammer Smokin' said:

Definitely not duty free to all buyers outside of Australia. Really, duty to everyone, aside from the good ole Ewe S of A.

Thats another matter - the duties aren’t charged by the merchant and plenty of people outside the US order gray market cigars without paying duties, at least on every package. I recognize Canada is especially punitive in that respect though.