Questions Request -- Another Question

[pnutbutrsangwich]

Not sure if it's too late, but I was just pondering something I have been bothered by for a little while. It seems that by general consensus on many internet boards that the Ramon Allones marca has a devoted and somewhat large following. In 2002, it essentially got cut in 1/2 by the discontinued list, putting an end to the production of some very fine vitolas. With the answers to a few of these production decision questions breaking down to "This sells a lot and no one buys that", I was wondering if a similar reasoning was the basis for the cuts made to the RA marca. Were the sales of RA coronas, PCs, and 898s that low? Or was it a question of raw material availability to maintain blend consistency. More broadly, how much does the supply of raw materials play in to decisions for cutting certain vitolas across all of the other marcas?

Prez, if this question is too late, I understand. It was just something that came to mind while I was smoking a great 06 Boli CJ, but I wish I had thought of it earlier. Thanks a lot to you and to your Habanos contacts for making this opportunity for free release of information available to us, the consumer. We as a community, can not thank you enough:-)

[El Presidente]

My pleaure mate :-)

Like all else in the world of Cuban cigars the answer is not necesarily straight forward.

Ramon Allones Specially Selected is by far away the most successfull cigar in the lineup followed by the Gigantes. Nothing else rated a "blip" on the Habanos sales radar......not the corona....not the 898.

Meanwhile, the Cohiba Siglo VI, P2, Edmundo took off like a train. I am guessing nearing 6-10% of total premium sales. Add to this the success (and continued success) of the Edicion Limitada's and now the Regional Edicions. Total quantity of cigars has been capped at $150Million for a number of years. Something has to give....and what gives are those lines that the consumer has moved away from.

I have high hopes for the Ramon Allones line in that it will see an extension in years to come. It is well respected both inside and outside of Cuba.

If I had a crystal ball I think the RA Belicoso will see worldwide release in 2008/9 followed by the Estupendos in maybe 10/11/

I hope this answers your question. The "culling" has had as much negative response inside Cuba (inside the industry) as it has had outside. It is just damn hard to argue against sales figures. Arguments do exist but take the new Estupendos (regional release). What if....and it is still early....the sale of Estupendos exceeds the RA 898v and RA Corona combined since the year 2000? Distributors are happy, Retailers are happy, 90% of consumers are happy and Habanos s.a are ecstatic. Trying to find a recalcitrant in the Habanos s.a meeting being negative on the project is as likely as finding a Rabbi at a hungi.

Here is the "recalcitrant view" that I proposed in regards to the release of the Behike Cohiba 40th anniversary release. I am paraphrasing but you get the idea.

HSA "The Behike was a huge success"

Rob " The Behike was a huge disaster"

HSA " What do you mean Rob....we could have sold them out 3 times over?"

Rob "You celebrated the 40th aniversary of Cohiba....and by making them unaffordable.....you kicked in the guts every man who has put his hand in his pocket to purchase a Cohiba. You had a party...and didn't invite the very people who made it a success. You have pissed on the taxi driver, the teacher, the plumber, the electrician, the small businessman etc who has at any time stuck that gold band in his mouth. And...to make it worse...in a world of advertising restrictions, these are the very people who you will increasingly rely on to spread your gospel."

HSA " Wow...I never looked at it like that"

Rob "Better start looking at the holistic repurcussions of your decisions. Sales count for now, hearts count forever.

I don't know what they will do in the future. However, through FOH and other mediums, they are at least recieving another angle through which to assess their decision making process.

[TR]

Keep fighting the fight el prez.......without man on the street views many large oranizations loose touch with their customers.....

TR

[tandblov]

An excellent post Pres,

I couldn't agree with your points any more. Personally I think the continued sucesss of the RE cigars is based quite a bit on the discontinuations of cigars in popular marcas. Hence the enthusiasm over the RAB, Estupendos and the PL Lonsdales. I know that I appreciate both these marcas a lot and, due to their limitations, ANY increase in varieties of available vitolas is exciting to me. I just wish that they were regular production cigars vs the more exclusive RE.

[anacostiakat]

» Keep fighting the fight el prez.......without man on the street views many

» large oranizations loose touch with their customers.....

»

» TR

Indeed!

[pnutbutrsangwich]

Wow Prez, that's a great answer! Thanks so much for taking some time to explain that. Your conversation about the Behikes was something that I also have been thinking about and I really like the way that you discussed it with the rep from HSA. Thanks again for making these little info sessions available.

[jwrussell]

A wonderful post Prez.

[pnutbutrsangwich]

» My pleaure mate :-)

»

» Like all else in the world of Cuban cigars the answer is not necesarily

» straight forward.

»

» Ramon Allones Specially Selected is by far away the most successfull cigar

» in the lineup followed by the Gigantes. Nothing else rated a "blip" on the

» Habanos sales radar......not the corona....not the 898.

»

» Meanwhile, the Cohiba Siglo VI, P2, Edmundo took off like a train. I am

» guessing nearing 6-10% of total premium sales. Add to this the success

» (and continued success) of the Edicion Limitada's and now the Regional

» Edicions. Total quantity of cigars has been capped at $150Million for a

» number of years. Something has to give....and what gives are those lines

» that the consumer has moved away from.

»

» I have high hopes for the Ramon Allones line in that it will see an

» extension in years to come. It is well respected both inside and outside

» of Cuba.

»

» If I had a crystal ball I think the RA Belicoso will see worldwide release

» in 2008/9 followed by the Estupendos in maybe 10/11/

»

» I hope this answers your question. The "culling" has had as much negative

» response inside Cuba (inside the industry) as it has had outside. It is

» just damn hard to argue against sales figures. Arguments do exist but take

» the new Estupendos (regional release). What if....and it is still

» early....the sale of Estupendos exceeds the RA 898v and RA Corona combined

» since the year 2000? Distributors are happy, Retailers are happy, 90% of

» consumers are happy and Habanos s.a are ecstatic. Trying to find a

» recalcitrant in the Habanos s.a meeting being negative on the project is

» as likely as finding a Rabbi at a hungi.

»

» Here is the "recalcitrant view" that I proposed in regards to the release

» of the Behike Cohiba 40th anniversary release. I am paraphrasing but you

» get the idea.

»

» HSA "The Behike was a huge success"

» Rob " The Behike was a huge disaster"

» HSA " What do you mean Rob....we could have sold them out 3 times over?"

» Rob "You celebrated the 40th aniversary of Cohiba....and by making them

» unaffordable.....you kicked in the guts every man who has put his hand in

» his pocket to purchase a Cohiba. You had a party...and didn't invite the

» very people who made it a success. You have pissed on the taxi driver, the

» teacher, the plumber, the electrician, the small businessman etc who has at

» any time stuck that gold band in his mouth. And...to make it worse...in a

» world of advertising restrictions, these are the very people who you will

» increasingly rely on to spread your gospel."

» HSA " Wow...I never looked at it like that"

» Rob "Better start looking at the holistic repurcussions of your decisions.

» Sales count for now, hearts count forever.

»

» I don't know what they will do in the future. However, through FOH and

» other mediums, they are at least recieving another angle through which to

» assess their decision making process.

Just thought of something else. Prior to the RA Corona and PC getting cut, they were produced in very small quantities. I would hate to jinx it if it's true, but do you think that they will cut the last smallish RG vitola, the Small Club Corona, as it appears to be going through the same thing currently? With one exception, I cannot find them anywhere and all the impressions I have gotten are that most retaillers have no idea when they're going to be coming in. I have a very narrow scope on this information (not a large number of retaillers), but this is what I have seen. Thanks, again. BTW, it's Tuesday... how much for the Estupendos?:-D

[El Presidente]

» Just thought of something else. Prior to the RA Corona and PC getting

» cut, they were produced in very small quantities. I would hate to jinx it

» if it's true, but do you think that they will cut the last smallish RG

» vitola, the Small Club Corona, as it appears to be going through the same

» thing currently? With one exception, I cannot find them anywhere and all

» the impressions I have gotten are that most retaillers have no idea when

» they're going to be coming in. I have a very narrow scope on this

» information (not a large number of retaillers), but this is what I have

» seen. Thanks, again. BTW, it's Tuesday... how much for the

» Estupendos?:-D

The RA Small Club Corona is following the same line as the San Cristobal Principe and Cuaba Divino's. They are just not being made in any quantities. Reading between the lines....they take as much work as a D4/CR/RASS/ but produce a much lesser internal rate of return (financial). They will continue to be dribbled out without much enthusiasm from Habanos s.a