Whosear wrote:
I'm standing corrected...I checked serial numbers on Cuban cigars at some of the better cigar shops downtown and they matched. So my info about the difficulty of importing Cuban cigars and tobacco is not accurate. My apologies.
Its not difficult - just expensive! And you STILL Have to be on the lookout for fakes.
I'll give you the Readers Digest version of how Cuban's get distributed (I may be off a little, but I think I'm 98% correct; this is off the top of my head based on what I've read and been told by tobacco men like Ernesto Perez Carillo founder and former owner of La Gloria)- I'm also truly giving the short version! I don't work in the cigar industry, nor did I ever - I just love them and have done a lot of research):
Cuban cigars are distributed by "Habanos" - As Cuba is under a communist government, Habanos (formerly "CubaTobacco") is in essence controlled by the Cuban government - however, a 50% stake in Habanos is (reportedly) held by Imperial Tobacco, a large British firm.
Habanos sells directly to Appointed Distributors located throughtout the world - these tend to be old, very knowledgeable firms - in many instances their relationship w/ Cuba goes back decades - they have exclusive rights to countries, or regions of the world - one of the best known is the UK distributor, "Hunters and Frankow" (sp) and WAS Davidoff of Geneva - more on Davidoff later.
These Appointed Dist. sell directly to:
Casas de Habanos
Other Distributors in their geography
Certain retail tobacco stores
Some years back, the Cuban gov't came to these Appointed Dist's (AD) and demanded a 50% stake in their companies, as a condition to continue as distributor(s) - as you can well imagine, while they were not thrilled to give up 50% of their business, however it was better to own 50% of a firm w/ the rights to distribute Cuban cigars vs 100% of a company who did not.
(This is their world wide business model - so if the AD for the UK has 50% of their company owned by the Cuban Government/Habanos, you have to asume the AD for CR and Nic. also does - but even Hunters and Frankow does not like to discuss their ownership -and as a private company, does not have to do so).
The "AD's" all aquiesed - w/ the exception of Davidoff of Geneva, who told the Cuban Government to pound sand - then proceeded to burn their entire inventory of Cuban cigars - and no, not one cigar at a time! - in protest saying the the quality was poor and they did not want the association w/ Cuban cigars going forward.
The distributon model is complex - and w/ the exception of the Appointed Distributors, no one legally "buys direct" from Habanos - but it also explains why these damn cigars are so bloody expensive.
Take the example of a cigar purchased in a retail store, and we will put aside the (very real) question of whether its genuine.
By the time you buy it look at how many "hands" could potentily have touched it:
Habanos - who sold it to...
The regional Appointed Dist
Perhaps the AD sold the cigar to another Dist
Who in turn sold it to a retailer - then you.....
So you potentially can have 4 people touch that one cigar or box before you buy it; at the very least, three - and all have to make a profit along the way - so the question perhaps should not be "why are Cubans so expensive" but maybe why don't they cost even more!
PS For a Communist Government, they can be pretty good capitalists when they so choose!