US Might Be the Main Market for Cuban Cigars

Source from:  Radio Cadena Agramonte Digital (cu)  12/29/2014

Cuban authorities said that in case of the lack of trade and economic restrictions against Washington against Cuba, US customers could be the main consumers of cigars in the world.

Jorge Luis Fernandez, commercial VP for international corporation Habanos SA , said Monday that this prerogative would occur in the absence of the blockade against Cuba. He said an analysis is required before, and another one after the triumph of the Cuban Revolution of 1959.

He remembered that from 1949 to 1958, the Americans were a natural market for this country and consumed 33 percent of the island's tobacco.

Fernandez, told local newspaper Trabajadores, that for that earlier period 35 percent of total revenue came from tobacco sales to Americans.

These barriers imposed in the 60s last century, not only stripped the Cuban tobacco business of a safe market, but the Americans, who stopped smoking these cigars.

In normal marketing conditions, Cuba world commercialize normally 150 to 170 million Premium cigars (more than three grams, handmade), which would bring 380 million dollars per year.

Cuba sells Premium tobacco to 25 countries of the European Union, which represents 58 percent of this production, with involvement due to accurate freight.

The executive noted that currently in the world, 400 million units of Premium are sold, and only in the United States about 270 million are consumed.

The blockade, he insisted, only leaves room for the rest of the market covering about 130 million cigars and cigars in particular account for 73 percent in terms of units.

If such figures are applied to the American market, they could get 70 percent share in units.

He estimated that up if these impediments, Cuba could sell in the first year about 50 million units in 10 years and get the corresponding market share

Meanwhile, international relations specialist at the Ministry of Agriculture in this country, Juan José León, said that the total damage to Cuban agriculture by such barriers reach a littler more than 307.36 million U.S. dollars in the last year.

The greater involvement of the sector, he specified, points to the tobacco, pork, grain production, and veterinary medicines and vaccines. Enditem