How can Cuban cigars enter US shelf life?

[canadianbeaver]

"At 12:01am on New Years Day, every scrap of Cuban tobacco will be bailed up and on its way to Nicaragua, Costa Rica, Honduras and the Dominican Republic to be blended with their best tobaccos. The Padrons and Garcias and Johnsons and Rubins will buy up every scrap they can find just to say they have "only the finest and rarest Cuban tobacco..."

Fascinating and creative thought. But I think Habanos might think differently. I hope!

CB

[Jersey Devil]

I hope so too, but if you're in their position, given that nation's economic situation, to know you'll have an immediate and extremely substantial income from a renewable product, why on earth would they not? Other than the ultra high-end marcas like Cohiba, Trinidad and perhaps Montecristo and H. Upmann in the midrange, I could see them putting retail product on hold for several seasons for the short-term gains that the Nicaraguan big boys can afford to pony up. And you can bet the Padrons; and Garcias' pockets are so deep it's scary. Can you imagine a 1964 Anniversario blended with Vuelta Abajo leaf formerly used to manufacture Bolivar or Partatas classics? Their investors and backers sure can. And the Cuban government can see all the tens-of-millions of US dollars flowing into the island in exchange for something they can keep producing.

In the very long term, market demand would probably be met, prices would fall and Cuban puros would come back into vogue, but honestly, I don't think it would be within 10 years, and probably closer to 20 (assuming smoking tobacco is even still legal in the U.S. in a generation). Believe me, I'd love to see the day come when I could take a drive to my local B&M and have a choice of an Illusione or a Magnum 46, each for about $8 or 9, and know that either one will taste great and be well constructed.

[LLC]

I think Habanos stand to make a lot more money on the finished product than by selling the raw materials in bulk.


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[Dmpotocek]

The thought of a Cuban blended Padron is certainly interesting, but I'm not losing sleep over the prospect of HSA shifting their business model to tobacco export. CCs are one of the few things that Cuba produces that there is any global demand for. Sure they could make a quick buck selling a vast majority of their tobacco, however by the time a leaf is ready to be rolled there is already substantial time and money invested. To turn around and wholesale raw materials when they already have the infrastructure to make cigars and sell a finished product doesn't make a whole lot of sense. The smart move would be to make a very small portion of tobacco available for export and let the Padron's, Garcia's and the Drew's of the world bid over it.

I am losing sleep over the thought of what the effect of opening the largest market for cigars would do to quality/price/availability, however I don't think it is a concern for the foreseeable future. Because outside of cigars, Cuba doesn't really have anything that we need/want, and cigar smokers make up a pretty small portion of the US population. Certainly not a big enough portion to warrant any action from our representatives.


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[SCgarman]

7 hours ago, Dmpotocek said:

The thought of a Cuban blended Padron is certainly interesting, but I'm not losing sleep over the prospect of HSA shifting their business model to tobacco export. CCs are one of the few things that Cuba produces that there is any global demand for. Sure they could make a quick buck selling a vast majority of their tobacco, however by the time a leaf is ready to be rolled there is already substantial time and money invested. To turn around and wholesale raw materials when they already have the infrastructure to make cigars and sell a finished product doesn't make a whole lot of sense. The smart move would be to make a very small portion of tobacco available for export and let the Padron's, Garcia's and the Drew's of the world bid over it.

I am losing sleep over the thought of what the effect of opening the largest market for cigars would do to quality/price/availability, however I don't think it is a concern for the foreseeable future. Because outside of cigars, Cuba doesn't really have anything that we need/want, and cigar smokers make up a pretty small portion of the US population. Certainly not a big enough portion to warrant any action from our representatives.


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Truth is the Padrons would have no interest in Cuban tobacco for their cigars. They have spent decades perfecting their tobacco grown in Nicaragua and perfecting their blends. The company is an absolute goldmine as it is. I'm pretty sure Jorge Padron would tell you his tobacco is superior to anything coming out of Cuba.

[canadianbeaver]

Totally agree with above. I foresee Padron, Arturo Fuente and Nat Sherman just saying, "Why go Cuban when you can get some of ours for $5.50. Or $55.50?"