Cuba Industry Update

[Colt45]

» Like you say, a 30% markup isn't too terrible.....

A $10 cigar becomes a $13 cigar, a $200 box becomes a $260 box --

please, someone point me in the direction of the money tree......

[Miami101]

Hi

Rob

Please if you have any photos from your trip.......I have been looking forward to the photos.

[genevapics]

Great information Rob. Thank you for sharing. I have no problem with people buying the EL's/RE's, as long as these products are superior or at the very least provide something that the consumer cannot purchase in the regular line. The problem is, no one knows whether these cigars are superior, because they are not really ready to smoke and won't be for at least 3-5 years.

But, I also can't fault Habanos, S.A. for discontinuing a product that doesn't sell. They are no different than any other business; it is about the bottom line, whether they are a manufacturer of luxury goods or not. Damiler/Chrysler will eliminate some 13,000 jobs nationwide, due in part because the Dodge Durango and Chrysler Aspen, mid-sized sport utility vehicles, don't sell. Why, because these automobiles are gas guzzlers. My point is this: from a business standpoint, if it doesn't sell, most likely the product will be discontinued.

How many of us have the MRN book? There probably are more discontinued habanos than current production habanos listed, yet we still continue to buy habanos. Why? Because we love the taste of a good cuban cigar. Ask yourself this question: Which currently discontinued vitola(s), was eliminated so that a new vitola(s) could be introduced? And was the newer vitola a success? Rob? Anyone? The only cigar that comes to my mind is the discontinuation of the Cohiba Coronas, which was replaced by the Cohiba Siglo III.

Listen, I am not in favor of discontinuing certain smaller sized vitolas, just so that we can enjoy something new or bigger. I am only in favor of culling the current line of cigars, if and only if, it provides us with a better product in the long run. The problem as I see it, is that the verdict is still out as to whether the newer EL’s/RE’s will be good/great cigars, or at the very least are better than those that they are replacing. From everything that I have read, most, if not all of these cigars are far too young to make this distinction.

As someone relatively new to cuban cigars, I just purchase regular production cigars anyway. Because of people like Rob, Tampa and many others, I have grown to love thin gauge habanos, in particular panetelas. When I placed my first order with Rob, I made the mistake of buying half a dozen Cohiba Sublimes. I purchased it (along with some Monecristo No.2’s) because it was the newest cigar and the habano that everyone was talking about; I fell for the marketing hype! Big mistake! Not only did I not like the cigar, due to its lack of flavor, but I found the damn thing a jaw breaker! Damn thing is the size of a horse’s “you-know-what!” Now, I stick strictly to regular production cigars.

As to those that purchase the newer EL’s/RE’s, hey more power to you as I have no right to tell you how to spend your money. If you have made your way through most, if not all of the regular line and are looking for something new or unique, go for it. But if you are purchasing these cigars strictly because they are new or the latest thing to have in the humidor, well, I think you may be part of the problem. If you are purchasing the newer EL’s/RE’s just make sure you understand why.

To reiterate, the discontinuation and introduction of vitolas is part of the evolution of the habanos line of cigars, IMO. I, for one, have no problem with Habanos, S.A. introducing newer EL’s/RE’s, as long as these cigars are better than those being discontinued.

[El Presidente]

Nice post Andre ;-)

I have no problems discontinuing cigars particularly if they can be revived through regional releases or a "Heritage Release" program that we have been pushing for.

The thrust of my discussions/arguments/pleadings is that a % of the new releases need to be thinner gauged. That is all I ask for. I think the quality of the new offerings across the board is excellent and there is no reason to suspect that a small ring release would also not be excellent.

Just mix it up a little :-)

[GTS21]

» I believe it will turn around.

»

» I am happy to fund a 60,0000 run of thin gauged cigars (PL Charlota?) as

» proof positive of demand. You bastards had just better buy some

I'm in!!

[genevapics]

» The thrust of my discussions/arguments/pleadings is that a % of the new

» releases need to be thinner gauged. That is all I ask for. I think the

» quality of the new offerings across the board is excellent and there is no

» reason to suspect that a small ring release would also not be excellent.

»

» Just mix it up a little :-)

I agree 100% Rob.

[Bernard]

»

» I can tell you as a store retailer (as opposed to a net retailer), about

» 50% of my instore local clients would not even notice a 30% increase in

» price. Price is irrelevant. I would say another 35% would notice but would

» pay and come to accept the new pricepoint. The remaining 15% would either

» change their purchasing habit or for a small percentage, stop. Again I am

» talking Bricks and Mortar.

Fair point, but is the internet not taking over bricks and mortar shops? The normal stores here sell 95 % of their premium Cigars as singles. Do you have stats on the international split between Internet and traditional stores?

[Mr. Japan]

Thank you Rob, your info are very helpfull for all of us.

[dav1041]

Wow, awesome information. I'm in for the thinner 'gars as well :-P

[El Presidente]

» Thanks for the info Rob & answers to me pre-trip questions.

»

» One comment, turnover was 370 M USD based on 162 M cigars? That means

» Habanos SA are selling them for around $2 per cigar???? And we pay $20 for

» them in the store...? Wonder where all the money is ending up.... :-D

»

» Magnus

The math also raised questions at the time in my head :-)

My personal belief is that the numbers are rubbery. Habanos s.a. is normally hesitant to release dollar figures because they fear it provides ammunition to their competitors.

The numbers stated were released at the Habanos Press Conference at the Melia Habana on the 23rd of February. The only thing missing at the press conference was a grain of salt.

[messa]

Cuban Cigar Industry Comment. ...

Some odds and ends:

...

* No difference between cabinet and dress box blends

...

Rob (or anybody else that might know),

has this always been true. I've heard from so many others that cabinet blends are better than dress box?

Is this a recent change by HSA?

[semery74]

I think that the end of the embargo also signifies a turing point for Dominican, Nicaraguan, and Honduran cigars. If the market share in the U.S. diminishes they will concentrate on increasing global sales. Perhaps they will also be forced to increase the quality at least to the level of Padron and Fuente. LOL You can definitely say that many International smokers will look for cheaper alternatives as prices rise.

But the tragedy of it all is that when the time finally comes, there will no place for us to enjoy our smoke in public. But I will gladly give up one freedom to enjoy another that is far better. I also dream of having "a few drinks overlooking the Malecon and a couple of Cohiba", RA.

Perhaps after a great meal with all of my best friends.

[Jimmy2]

Rafael Gonzalez M. Cigars/La Gloria Cubana Cigars are the cigar brands maybe you could think about for your limited release .More than ever with so many of them being discontinued they need some exposure to remind people how good these brands are.Rob I believe more than ever these need the exposure and you are the one to lead the campaign.