Discussing significant reductions in Cuban cigar deliveries for 2024 and their impact on distributors and aficionados.
You may not have this on your radar yet, but Habanos isn't just playing the field, they own stakes in every importer they partner with. The latest smoke signal from their end? Distributors not entirely under Habanos' umbrella should brace for a sharp downturn. Expect cigar deliveries to nosedive by 30 to 50% from last year’s figures. It's a tightening grip on the reins that's bound to shake up the boardrooms and lounges alike.
Our fellow cigar lovers from 'L’amateur de Cigare,' a magazine that’s actually worth your time, just shared the disturbing news. It seems that several distributors linked to Havana but not wholly owned by Habanos SA have already been informed about this—they're about to see their cigar shipments take a serious hit starting this year.
In a bold move emblematic of a deeper strategic intent, the Havana-based leadership has opted to distinctly favor distributors that are entirely under Cuban control. Prominent distributors such as Coprova in France, Laguito 1492 in the Benelux region, and Tabacalera in Spain now enjoy preferential status because of their alignment with Cuban directives. In contrast, independent distributors like Phoenicia and Pacific Cigar, along with joint ventures such as Intertabak AG in Switzerland, are experiencing a discernible shift, finding themselves at a disadvantage. This recalibration signals a significant realignment within the sphere of global cigar distribution.
The latest strategic pivot by Habanos is set to affect Phoenicia, Intertabak, and Pacific most. These importers were discreetly briefed on the developments by Habanos several weeks ago. One importer however has indicated that discussions are still ongoing introducing an element of suspense to our story.
Reliable sources are now speaking of emerging tensions between Habanos SA and the Villiger group, connected through their joint venture in Fifth Avenue Trading, the sole importer of Cuban cigars in Germany.
Under the veil of anonymity, the affected distributors have disclosed a significant reduction in this year's deliveries, estimated at 30 to 50% less than the previous year. And there’s more—turns out, a mid-April email from Intertabak to its clients sheds further light on the situation. Tony Hoevenaars, Intertabak AG's Managing Director, conveyed a shift in expectations: "Until recently, we had every reason to be optimistic about the improvement in the availability of Habanos in 2024," he noted. "However, the latest news we have received is less favorable than previously communicated, and, much to our regret, we must now anticipate lower volumes than in 2023."
Honestly, my expectations were set rather higher regarding the stock situation. Recent indicators had suggested a positive trend, with cigars being dispatched in increased quantities and a general alignment towards progress.Yet, let us not forsake optimism, let us instead look forward with anticipation to more encouraging developments in the near future.