Cuban Cigar Sales Fall Again ... and Faster

[Vision]

Cuban Cigar Sales Fall Again ... and Faster

Cuban cigar sales are off yet again, and there's plenty of blame to go around. Global economic conditions have constrained consumer spending, and smoking bans worldwide have made it harder to find a place to light up.

The quality issue can't be ignored, as well, with many cigar smokers finding that a Cuban cigar just isn't what it used to be.

Habanos S.A., the government-run company behind the Cuban cigar industry, has reported a substantial decline in sales for the second year in a row. In 2009, the company's top line fell 8% to $360 million, which came after a 3% drop to $390 milion from 2007 to 2008.

The embargo severely restricts access to American cigar smokers, who may purchase them outside the country or illegally at home, which means that Habanos relies largely on the non-U.S. market. Spain is Habanos' largest market, and a weak Spanish economy in 2009, characterized by rising unemployment, provided a tough environment for Habanos.

The travel market recession has also hurt Habanos, particularly in airport duty-free shops.

Habanos Vice President Manuel Garcia said during a news conference at the beginning of Cuba's five-day yearly cigar festival, "This is not what we were expecting, not what we hoped for anyway."

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http://www.bloggingstocks.com/2010/02/24/cuban-cigar-sales-fall-again-and-faster/

[wingman01]

Interesting:der:
I will say that it seems like quality is lacking a bit. I've recently bought some Dominicans and others that are made very well by hand.
Could it be because of quantity over quality is taking over?

"In 2000, the Franco-Spanish tobacco giant Altadas purchased 50% of Habanos S.A.. There has been speculation that their influence has led to Habanos' drastic restructuring of their cigar lines and size offerings, the adoption of marketing practices and production methods more in-line with cigar companies that market in the US, and the increasing number of "special release" and "limited edition" lines of cigars It has also been suggested that Altadis might be ramping Habanos up ready to trade with the US, anticipating the end of the embargo"
We will see.

[rollzst]

Interesting post. I think the cigar Market in general is in decline. The smoking bans are one of the main reasons in my opinion. It's easy to go outside for a quick cigarette but a cigar takes much longer so people are only able to smoke when they are at home or during free time therefore smoking less.

Another reason must be the recession over the last couple of years. People have been cutting down on items that are not essential. Cuban cigars are the most expensive type of cigar so smokers who are wanting to continue their habit\ hobby could well be switching to Dominican or other cigars.

[tippexx]

[QUOTE=wingman01;69104] ..... ready to trade with the US, anticipating the end of the embargo"

I cant see that being too far off now.

Loss of sales through the Duty Frees. I don't think all of that is down to the reduction in tourist traffic. A lot is to do with lack of selection and poor humidor keeping.

[navzor]

Perhaps influenced by Obama looking like he'll ease back on the embargo, so less US trying to get them by nefarious means and holding on until they might be able to get them legally?

[Boss Hog]

Very interesting,
Nothing to do with the fact that more people are finding they actually like NC's for taste and price.
(excluding Pedro, that is)

[Vision]

Personally I see it as a mix of the economy and poor quality.