How is the business ? As mentioned in the previous blog this years 10th International Meeting of La Casa del Habano Franchise chain was all around this single question. The crisis has reached Cuba and its cigar industry….

Very much to my surprise Habanos S.A. commercial Vize-President Manuel Garcia Morejon included hard facts and sales statistics in his long resume about todays Habanos market situation.

Here are some details:

Total net sales 2006: 374 Million USD

Total net sales 2007: 402 Million USD

Total net sales 2008: 390 Million USD

The drop of about 8% in sticks andsome 3% in total sales value has various reasons that we do not need to discuss for now. Just one example I like to mention is that due to a drop in international travels the duty free sales – accounting for 25% of the total Habano sale – are affected very hard.

Some markets are affected hard than others. Canada has reported a loss of 18%, Western Europe minus 11.3% and the Middle East minus 12.4%.

98% of all sales are done with what we could call Premium Standard cigars versus just 2% made with what Habanos S.A. calls Specialities (such as Regionals, Limited Editions, Humidors etc etc)

Habanos is further strengthening its retail outlet franchise chain La Casa del Habano. Currently 144 such flagship stores in 63 countries and 100 cities are under operation.

Most interesting was the brand sales statistic showing Montecristo as the top one both in sales value and units. Remarkable in so far as in previous years Cohiba was the cash cow of the business. Besides Montecristo the Romeo brand and Jose L.Piedra rank in the top range of the sales statistics. The best selling cigars are Montecristo No.4 with 8% market share, Jose Piedra Cazadores with 5% and Partagas Serie D. No 4 with 4%.

A motivating conclusion of the business preview for 2009 has been made by Manuel Garcia Morejon when he pointed out that trust in our business is the most important issue. “A good Habano will make all of us feel better” added Habanos S.A. Franchise GM Ignacio Balmaseda. I like that standpoint and agree in full

Now, the more easy to digest part of the meeting was about the new cigars we may expect in 2009. Habanos S.A. Specialist Arturo Mejuto presented what is forseen to come out this year:

1) Colleccion Habanos San Cristobal de l’Habana – with 20 Robusto sized cigars names O’Reilly ( a street downtown Habana where the old Habanos head office was located)

2) Montecristo Antique Humidor – just where is the current one ??

3) H.Upmann Crystal Jar with Cosaco sized Noellas

Especially the latter sounds great to me. I used to smokes the cigars in the late 1980’s and support the idea of a re-launch of crystal jars!!

Now, I am on my way to meet a very old friend at his cigar farm in the Vuelta Abajo region. Stay tuned to read more about Alejandro Robaina and todays trip. Actually I cant wait to see if he will ask me about how my family is doing…….

During the Festival week LCDH Hamburg has some specials on sale you do not want to miss. This offer is valid until Thursday , to our overseas customers only and of course as long as stocks last. Pls leave order code FESTIVAL03 …

Todays special is Cohiba Robusto – Summer 2007 at only 350 Euro.

To order pls use our webstore or just email to sales@thecigarsmoker.com

Happy smoking from the Highway between Havana and Pinar del Rio

Christopher Wolters

LCDH Hamburg

www.thecigarsmoker.com

To read yesterday's blog please click here