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Current Brand StatusThe currently Habanos s.a. portfolio consists of 27 brands, grouped by world availability.
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Current Production All Habanos cigars are now handmade (Totalmente a Mano). They are mainly long filler (Tripa Larga). Three brands (Jose L Piedra, La Flor de Cano, and Quintero) comprise all short filler (Tripa Corta - TC) cigars. Three brands also contain a single short filler cigar (Por Larranaga - Panetelas, Rafael Gonzalez - Panetelas Extra, and Fonseca - Delicias). This information was confirmed as correct in 2006 and is understood to be still current. |
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Sales & Revenue For 2007, Habanos' three top brands accounted for two-thirds of total income: ● Cohiba ...................... 25% of total revenue (from 12% of total sales). ● Montecristo ............... 23% of total revenue (from 19% of total sales). ● Romeo y Julieta ........ 18% of total revenue (from 18% of total sales). These top three brands represent 50% of all sales, and two-thirds of all revenue. Previously, it was advised that Cohiba (with 11% of sales) generated 20% of all revenue and the top selling Montecristo generated for 29% of all revenue. |
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Brand History When Cubatabaco took control of the Cuban Cigar Industry in February 1962, 25 brands existed: Several pre-revolution brands were later reinstated:
Several new brands were added (some were later discontinued, see below):
Since 1962, the following brands were discontinued:
Circa 2005/6, the remaining machine-made brands were discontinued or transferred out of the Habanos s.a. portfolio of brands: In late 2007, Habanos SA listed a new website. H Upmann and Jose L Piedra were upgraded to Global brands and Quintero was downgraded to a Multi-local brand. |
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Cuban Tobacco & Cigar History The following is a summary of significant periods in Cuban tobacco history: 1492 Columbus "discovers" indigenous tobacco in Cuba and takes it back to the New World. 1511 Spain takes control of Cuba. 1614 La Casa de Contratatacion de la Habana formed to develop tobacco production in Cuba. 1717 Royal monopoly control on tobacco growing in Cuba imposed and vigorously enforced. 1817 Tobacco industry monopoly ends and a boom in cigar production export commences. 1898 War brings independence to Cuba (under USA influence) and the American / British buy-out begins. 1920 Cigar making machines introduced into Cuba. 1959 The Revolution occurs (outing corrupt President Batista) and Fidel Castro takes control of Cuba. 1960 Castro nationalises the Cuban cigar industry on 15th September 1960. For more detail, see below. 1962 Cubatabaco (Empresa Cubana del Tabaco) was formed and over one hundred export brands discontinued. For more detail, see below. 1962/3 The 1962 Cuban Missile crisis results in a USA embargo. Full restrictions are enforced in 1963. 1980 Cuban factory Vitolas de Galera names are reduced and rationalised. For more detail, see below. 1992 Start of Cuba's Special Period, a near decade of economic crisis following the collapse of the Soviet Union (who had been propping up Castro & Cuba). 1994 Habanos S.A. (Habanos Sociedad Anomina) created as the commercial (sales) arm of Cubatabaco. Cubatabaco retains control of all aspects of cigar production. 1999 Altadis S.A. formed by merger between Spain's Tabacalera S.A. and France's SEITA. 2000 Altadis S.A. purchases a 50% share in Habanos S.A. 2001 Tabacuba formed and takes over from Cubatabaco as the manufacturing arm of Habanos S.A. Internacional Cubana de Tabacos s.a. formed to manufacture & promote the Guantanamera brand and the various brands of mini cigars (mini, club, & puritos). 2002 A major policy change introduced, and production improvements commenced. For more detail, see below. 2005 A three year period of significant production improvements completed. 2006 Arguably considered as a highpoint in modern Cuban cigar quality. 2007 Altadis (French-Spanish company) has accepted a bid of €50 a share from Britain’s Imperial Tobacco (valuing the company at €12.6 billion, for its 252,436,856 shares). Altadis holds a 50% share of Habanos SA. Castro's illness triggers speculation of the end of the US embargo. While currently appearing unlikely, this, combined with the pending merger, raises many concerns regarding supply, quality and pricing of Cuban cigars. 2008 The final sale/transfer of Altadis to BIT finalised. Castro announces his retirement as President of the Council of State, and Commander-in-Chief. |
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Rationalisation of the Cuban Cigar Industry The following events sets out the various stages that significantly affected Unification & Rationalisation within the Cuban Cigar Industry. Pre Revolution Before the Revolution, the Cuban cigar industry was not centralised. There was no system or any rules to follow. All the manufacturers were independent, some large and many small. Every manufacturer was free to produce whatever cigars and packaging they wished. The Revolution - 2 January 1959 Following the revolution, it was business as usual for the cigar industry. All the firms still remained independart. The Cuban cigar price list effective from 1st January 1959 showed 140 brands in production for export. There were a total of 1,185 vitolas available. There were 999 in-production and further 186 available for sale by order. Nationalisation - 15 September 1960 Private businesses were “nationalised” to become the property of the Cuban government. Many business proprietors of the Cuban factories fled the country. While there was general chaos, Cuban cigar production in many small factories continued with the employees operating the businesses. Cubatabaco Formed - February 1962 Government officials took over as managers of all Cuban cigar factories. Most small factories were closed down due to lack of man-power. Only major factories remained in operation. These factories still remained independent of each other and therefore from a production point of view, still nothing changed from pre-1960. The suggested reasons are that government factory managers knew very little about cigars, and in a Communist system, you don’t get rewarded for positive thinking. Cubatabaco produced its first Catalogue detailing the brands officially produced by the new Government regimen. The number of brands and vitolas was substantially reduced. Crop Failure - 1980 The crop failure of 1980 resulted in a historical rationalisation of the Cuban cigar industry. Blue mould disease (a plant fungal disease) wiped out the entire tobacco crop in 1980. With no tobacco, the factories became idle and some were closed. During this time, a new policy was developed that had three main principles. Every factory could make any brand; all vitolas sizes and packaging types were standardised; and any uneconomic vitolas or packaging were eliminated. A massive trimming of many small selling vitolas occurred, and only about 500 different vitolas remained. Altadis SA purchase of 50% of Habanos SA - 2001 Prompted by Altadis S.A. influence, in 2001 Habanos S.A. decided to dramatically change the way they make and market cigars. This change was carried out over a three year period. Instead of having varying degrees of quality within each brand (handmade, hand-finished, & machine-made), Habanos S.A. decided that the major brands will only offer premium “totalmente a mano” hand-rolled cigars. This was to allow consumers to better understand just what sort of cigar they are buying. Of the 549 vitolas that were manufactured in 1992 (the beginning of Cuba's Special Period) only 319 were to remain in production, and only 33 brands continue to manufactured, and almost all brands saw major changes. Within each brand, vitolas that have the same size but different blends, were axed. Only the best selling cigar of a vitola was to survive. These changes enable a greater chance of a particular vitola being in stock. The simplification of the brand lines allows the occasional smoker to better understand the range of Habanos. There were two other significant decisions. Firstly the machine-bunched hand-finished method was to be eliminated, due to economic and marketing simplification reasons. Secondly, the Belinda, Quintero, Jose L Piedra, Gispert, La Flor del Cano, Cabanas, Los Statos de Luxe, and Troya brands will only be made by the “tripa corta” or “mecanizado” methods. Extension of the 2001 Policy - 2005/6 Around 2005/6 Habanos SA decided to carry this 2001 policy further by eliminating all machine- made cigars and brands from their portfolio. This reduced the number of brands to 27 and reduced the number of standard production vitolas to around 240. This was offset by the major increase in premium cost Special Releases. Purchase of Altadis SA by British Imperial Tobacco - 2008 The effect of this purchase is unknown at this time. To be continued! |