Havana News July 08

[El Presidente]

I had some enlightening meetings in Havana. Overall I came away more despondent than usual. I will just fire away on a few different topics of interest.

New Montecristo Sport.

They are going back to the drawing boards. There will be a new Montecristo Line called "Montecristo Open" It was pointed out to the marketing heads that associating tobacco and "Sport" would see the line banned in most countries.

"Montecristo Open" will be targetted at the duty free end. There is still no final approval but the word is it will be pushed through. It has little support amongst distributors. Expect to see it sometime in 2009.

Tobacco Crop

Current shortage of wrapper. Production of larger vitola's will be down this year. Cigars in general are on the milder side but it is due to the Ligero currently being used is a little milder in strength. This is just a normal seasonal variation and not a planned blend change.

Discontinued Cigars

They are at it again. 58 cigars were submitted to be discontinued at the end of 2009. Tabacuba reduced the list to 16. THIS IS NOT FINAL but is what is currently being proposed. There is hope to save 3-4 of the cigars but as of right now the list below is what is being looked at.

The premise for discontinuance is sales....nothing more and nothing less. I made the normal plea for a renewed respect for brand heritage.

The Cubans have made a stand to save some lines. Initially La Gloria Cubana was to be reduced to only the LGC Medaille D'Or No 2. Rafael Gonzalez was to be wiped as were Sancho Panza and Vegueros. For the time being they are safe but in a precarious position.

This is the list of cigars proposed to be discontinued at end 2009. Again..it is not final but as an analogy....they are on the gallows, noose around the neck and awaiting a final plea.

Bolivar

Bonitas

Inmensas

Coronas Extra

Fonseca

Cosacos

Upmann

Coronas Junior

Monarcas

Hoyo De Monterrey

Hoyo Du Roi

Montecristo

Joyitas

Partagas

Super Partagas

Princess

Petit Coronas

Punch

Super Seleccion No 1

Quintero

Nacionales

Vegas Robaina (only 3 cardboard packs to be discontinued)

Famosos (25's will remain....only cardboard packs discontinued)

Don Alejandro (25's will remain....only cardboard packs discontinued)

Clasicos (25's will remain....only cardboard packs discontinued)

I would strongly suggest to members that they contact Lise and to have her set aside progressively the finest examples of the above over the coming 6-9 months. No use stocking up on ordinary cigars but rather cherry pick the best examples.

International Markets

Global economic downturn and smoking laws have affected sales worldwide. Only two distributors are maintaining a level of growth with the rest stagnant or dropping. Conditions are expected to remain difficult in the immediate future. Cigar lines offered will continue to be reviewed with those removed being replaced by new offerings which hopefully wiill have more market appeal.

[Colt45]

They'll do what they do, but I am a bit surprised to see the Bolivar Coronas Extra

and Upmann Monarcas on the proposed list.

Thanks for the report, and welcome back.

[habanohal]

DId you mention anything about price reductions?? Not as much profit made but more product sold in the haul of it

[El Presidente]

» DId you mention anything about price reductions?? Not as much profit made

» but more product sold in the haul of it

Colt I was stunned to see the Bolivar Corona Extra on the list.

Habanohal....no mention of price reductions Realtiy is that with the Le's and RR's + new general releases (P2/Siglo VI/Monte Edmundo etc) the average $ sale price has increased as has average $ return. Sales volume looks like remaining steady or showing a decline. I doubt the final figures released will show a volume decline.....if you know what I mean.

[anacostiakat]

» They'll do what they do, but I am a bit surprised to see the Bolivar

» Coronas Extra

» and Upmann Monarcas on the proposed list.

»

» Thanks for the report, and welcome back.

Damn. Stupid . . . :crying:

[Ginseng]

» They are going back to the drawing boards. There will be a new Montecristo

» Line called "Montecristo Open"

What in the hell is "Open" supposed to mean or connote?

» Tobacco Crop

»

» Current shortage of wrapper. Production of larger vitola's will be down

» this year. Cigars in general are on the milder side but it is due to the

» Ligero currently being used is a little milder in strength. This is just a

» normal seasonal variation and not a planned blend change.

Good to know. Rob, this would be fermented wrapper ready for rolling then? Any word on this year's crop in the fields?

» Discontinued Cigars

»

» Bolivar

» Coronas Extra

You have got to be kidding me.

» Upmann

» Monarcas

Sigh. I suppose the more expensive Sir Winston will hold down the fort.

» Montecristo

» Joyitas

Nooooooooooo!

» International Markets

»

» Global economic downturn and smoking laws have affected sales worldwide.

» Only two distributors are maintaining a level of growth with the rest

» stagnant or dropping. Conditions are expected to remain difficult in the

» immediate future. Cigar lines offered will continue to be reviewed with

» those removed being replaced by new offerings which hopefully wiill have

» more market appeal.

Would you be at liberty to share what regions are doing so well?

Thank you for the insight, as always.

Wilkey

[Don Candido]

» Colt I was stunned to see the Bolivar Corona Extra on the list.

I was surprised as well, but I have to admit, while I hold that smoke in fairly high regard, I do not reach for it too often.

[FireDigger]

Excellent info Presidente!

I think it's a good thing to discontinue the Monarcas and SS#1 since more popular cigars of the same size already exists within those brands. And if you're a fan of those, better stock up!

Edit: oops, thought SS#1 was one of the three remaining coronas gordas, but it is the corona grande.

[El Presidente]

» What in the hell is "Open" supposed to mean or connote?

Maintains the Sport theme (Golf) I assume. It is still idiotic.

» Good to know. Rob, this would be fermented wrapper ready for rolling then?

» Any word on this year's crop in the fields?

Correct. I didn't get a report on this years crop but I will endeavour to find out.

» Would you be at liberty to share what regions are doing so well?

Middle East and Asia are the star performers.

[Ginseng]

» » Good to know. Rob, this would be fermented wrapper ready for rolling then?

» » Any word on this year's crop in the fields?

»

» Correct. I didn't get a report on this years crop but I will endeavour to

» find out.

Fantastic!

» » Would you be at liberty to share what regions are doing so well?

»

» Middle East and Asia are the star performers.

Would Asia include PCC? If so, congratulations to all of you at Czar and to Mr. Holmboe as well.

Wilkey

[El Presidente]

» Would Asia include PCC? If so, congratulations to all of you at Czar and

» to Mr. Holmboe as well.

»

» Wilkey

Correct PCC and Phoenicia are those kicking goals.

Hats off to Dag Holmboe. Dag was in Vegas and attended our Wednesday FOH get together. It was near 3 o'clock in the morning and I can remember Don Candido having a tete a tete with Dag and Jemma Freeman from H&F.

Once I put DC to bed it was the last I saw of him for the week

[Sandman]

Have to admit that I am shocked to see the Punch SS#1 considered for discontinuation.

Thanks for the updates Rob.

[BlackFriar]

In the end, it seems capitalism beats out the communist experience. Very Sad.

Chris

[Evo03]

» Partagas

»

» Super Partagas

» Princess

» Petit Coronas

»

I hate to see them get rid of my favorite Petit Corona.

[habanohal]

One line I would really like to see Robustos or Corona Gorda would be the LGC line up. Seems that HSA is fadeing out regular production lines for "special"releases, which IMO arent really far differant than their cigar families.

[perfectform]

Great batch of info Rob, thanks for the report!

[El Presidente]

» Have to admit that I am shocked to see the Punch SS#1 considered for

» discontinuation.

As am I mate. One of my favourite go to cigars.

The argument the Spanish make is that people are voteing with their wallets. I can run the "heritage" line as much I want but when they produce the numbers it is hard to run a case against it. I do however. It costs near nothing to "reduce" production of these lines (particularly Bolivar Inmensas/CE + Punch SS1 + Partagas PC) and keep them in the loop.

I must give Kudos to the Cuban side for fighting this to the end. They are appalled. Yet, as much as we detest the "Montecristo Open" concept....they will sell more in one weekend Duty free worldwide than they would sell Punch Super Selection No 1 in a year.

You guys give me an argument, give me a foothold and I will battle on.

[Lanthor]

Thanks Rob, kind of ironic the Punch SS is one of the harder cigars to find, so they are going to discontinue it due to lack of sales.

Not a fan of punch, but I am of the CE's and coronas in general. I fear we will be smoking nothing but robustos and torps in 10 years.

[El Presidente]

» Not a fan of punch, but I am of the CE's and coronas in general. I fear

» we will be smoking nothing but robustos and torps in 10 years.

If the world moves to cigarillos so will they. They will produce whatever sells. For a group trying to emulate the great watch brands (Rolex) or Champagne houses (Dom Perignon) they need a serious lesson in history and integrity.

I have said enough ;-)

[kjellfrick]

This was sad news, Rob. The Punch SS1 is one of my favorite cigars, not to mention the Bolivar Coronas Extra and Inmensas. Together with the recent cuts of Coronas and Lonsdales, this is turning nasty.

Thank you for the information and the sound advice, though.

[havanaclub7]

» » What in the hell is "Open" supposed to mean or connote?

»

» Maintains the Sport theme (Golf) I assume. It is still idiotic.

Prez is right, Montecristo Open sounds like a golf tournament. Of course we'll know for sure when they name the cigars Brassie, Mashy, Niblick and Jigger (depending on the size of the cigar, of course!).

[mkz]

Thanx for the info. :-)

[yossie]

I must stock my lovely bolivar CE and LGCs up..

[northo]

Like others I'm not happy about those bolis. But mostly it would be a crying shame to see Rafael Gonzalez go, they may have torn the soul out of it when the lonsdale went, but the pc and ce can still be great smokes.

I'm going to go against the tide on the Montecristo Open issue. I love montes and would be interested to try a new line with a slightly different profile, especially with the new sizes, as long as it kept that unique Montecristo base flavour.

'Montecristo Open' is a bit of a silly name, and I'm not sure how they think that particular bit of branding is going to work semantically or semiologically. But its a helluva lot better than 'Montecristo Sport'. If I went into a shop and bought a box of Montecristo Sports I'd feel like a ****, if I bought Montecristo Opens I would just feel a little confused.

[Smallclub]

» Discontinued Cigars

» Partagas

» Petit Coronas

I guess it is the Petit Corona Especiale, because AFAIK the "real" Petit Corona (mareva, hand made) was discontinued many years ago…