Who owns the Cuban brands?

[genevapics]

I believe I know the answer to this question, but I am a little fuzzy about the history of things.

Back before the revolution, all of the brands where owned by either a family or some company, if I understand it correctly. Then along comes Castro and things changed. I believe the date is sometime in January 1959 as the date for Pre/Post Revolutionary Cigars. [Note: My Min Ron NEE is upstairs, so forgive my laziness.] Now, what happended next? Did all of these rich families/companies flee the country and head to Florida, The Dominican Republic, and other parts of the Caribbean? Did they flee and leave behind everything or were they forced to give up everything to Castro and the new gov't? Or, did the gov't buy them out at sometime down the line. (This last option seems highly unlikely.)

It seems to me, and I may be wrong, but Habanos, S.A. has taken over from Cubatobacco in regards to manufacture and distribution of Cuban cigars. So, what happened to the families/companies that owned all of these Marca's?

Any help from our history buffs would be greatly appreciated. Thank you.

Geneva

[NOTE: I apologize for my lack of knowledge on this subject, but it really has me perplexed as to what happened and when.]

[El Presidente]

Of the premiums, Habanos s.a owns all brands except Quai Dorsay (owned by CubaTobacco).

They also own all the factory stores except Romeo y Julieta.

Cost was $500,000,000.

Habanos s.a does not however own the factories themselves. This is still under the control of CT and is still the bain of 99% of problems and arguments. Just like a typical marriage

The traditional owners were dispossessed of their property, trademarks and entitlements.

[genevapics]

» Of the premiums, Habanos s.a owns all brands except Quai Dorsay (owned by

» CubaTobacco).

»

» They also own all the factory stores except Romeo y Julieta.

So who owns the Romeo y Julieta factory store? And are they a private concern or gov't controlled? And these factory stores are the ones that are located inside the factory or nearby?

»

» Cost was $500,000,000.

»

» Habanos s.a does not however own the factories themselves. This is still

» under the control of CT and is still the bain of 99% of problems and

» arguments. Just like a typical marriage

So, CT owns the factories. So CT controls how they make the cigars in regards to blends? Also, does CT then sell the cigars back to Habanos? And are both Habanos and CT privately owned or are they gov't controlled?

»

» The traditional owners were dispossessed of their property, trademarks and

» entitlements.

I figured this to be the case. When did this actually happen? At or near the Revolution or was it a gradual thing, where the families were slowly forced out?

[El Presidente]

Habanos s.a is a 50% joint venture with CT (Cuban Govt arm) & Altadis.

Habanos s.a owns all rights to premiums except Quai Dorsay (CT). Habanos s.a owns all internal factory stores except R&J which is owned by CT.

All Factories are owned by CT (Cuban Govt). I believe Blends are also owned by CT but I need to clarify.

Obviously as CT owns 50% of Habanos s.a there is profit distribution after input costs are factored in.

I will need to research further as to the timetable of the dispossession of owners. My understanding is that it was complete within a few years. Many staid on in Cuba to work and manage the plantations.

If others have more information it would be enlightening.

[genevapics]

No rush Rob. This thread has really cleared some things up for me. I new the families were pretty much out of the picture, but I still wasn't quite sure how things were actually run in regards to the production, manufacture and distribution of the actual cigars. Your answers cleared things up for me. Thanks.

While I have your attention, can you recommend any books on the history of Cuba. Pre/Post revolution is what I would be interested in. Again, thanks.

Geneva

[CigarZen]

Interesting info. I did not know about the RyJ and QdO exceptions. How were these carved out of the deal?

[El Presidente]

I will ask my Habanos s.a mates next time I see them

No doubt the story will involve equal parts skulduggery, intrigue and deception ;-)

[Wiley]

» I will ask my Habanos s.a mates next time I see them

»

» No doubt the story will involve equal parts skulduggery, intrigue and

» deception ;-)

Skullduggery is one of my all time favorite words.

[tey]

i'd like to know more also. so out of all the brands the only one they kept was QDO??? interesting

[DocRKS]

» i'd like to know more also. so out of all the brands the only one they kept

» was QDO??? interesting

The only brand they were ALLOWED to keep, things don't always get put to a 'majority rules vote over there....

QdO is a strange duck in its own right - originally developed to go after the 'unique' taste profiles called for in the FRENCH market..... however, since this is an outstanding International Forum - discretion and respect for our hosts here will make me end this post at this point without further comment.

[Van55]

I found this bit of history at a website called e-tobaccos.com

Revolutionary Cuba:

By the beginning of the 20th century, the United States had acquired control of Cuba and much of the cigar industry after the Spanish-American War. The business of cigars had reached a turning point.

Brand proliferation and marketing had begun. Indeed, the huge number of brands, sizes, and shapes required some sort of regulatory action. In 1912, the Cuban Warranty Seal was introduced to guarantee the authenticity of Havanas and bring order to the fragmented industry. Business and profits were not to be denied however.

The 1920's married technology with cigars. The cigar-making machine appeared causing a massive uproar amongst the workers in the industry. A boycott against these substandard cigars was organized but to no avail. Foreign companies simply imported Cuban leaf to their respective countries and built large cigar factories. These cheap cigars of lesser quality hurt the hand-rolled industry for a time.

1959 was the year of the Cuban Revolution. The political climate of Cuba had changed and Fidel Castro's new government nationalized many assets and businesses within Cuba. The primarily American owned tobacco industry was one of these. In 1960 it was reborn as CubaTabaco.

These events led to the imposition of a trade embargo upon Cuba by the United States, the world's wealthiest market. Another unforeseen consequence was increased competition. While nationalization had put control of tobacco back in Cuban hands, it was also parent to a host of competitors: the cigar families that had fled Cuba to surrounding regions with suitable growing conditions, countries such as Honduras and the Dominican Republic.

Modern Cuba:

CubaTabaco initiated a much-needed overhaul of the Cuban cigar industry. The number of brands was greatly reduced and marketing emphasis was given to the top Cuban cigars. 1982 saw the appearance of the Cuban 'State Cigar', Cohiba. Since this fine debut, a couple of other brands have been introduced including the mysterious Trinidad in 1994 and Cuaba in 1996.

This agrees with my vague recollection what happend in Cuba shortly after Castro deposed Batista.

So the long and the short of it is that the cigar industry in Cuba is now "owned" by the Cuban government through its agent Cubatabac.

Of course Habanos s.a. -- a 50-50 partnership between Cubatabac and Altadis -- markets Cuban cigars internationally

As for the trademarks and trade names, it will be fascinating to see who will control them once the embargo ends. It's interesting that General Tobacco has (so far) won the right to market under the Cohiba brand name in the U.S. courts in a suit filed by Cubatabac. The reason that I say this is interesting is that the Cohiba brand was introduced in Cuba AFTER the Cuban revolution, so General could not claim any pre-revolution ownership in it. This contrasts with, for example, the Trinidad name which is still used by the Cuban exile Trinidad family outside of Cuba.

[genevapics]

Nice work Van55. Thanks for the website.

[El Presidente]

Great work Van

Many indeed left their factories and plantations and headed to Honduras and the Dominican Republic to start again. Some however could not leave behind all that they created and continued on managing the factories and fields under the control of the Cuban Government. Some only lasted a brief period of time (who could blame them) while others died in those factories and fields that they once managed and owned. I hope to find out the names of those that stayed on. It would be a nice part of Cuban Cigar History which should be acknowledged.