15 Minutes With Habanos, S.A.

Source from:  cigarwise.com 05/10/2004

Manuel Garcia Morejon, Commercial Vice-President of the Habanos S.A. Corporation, answered a few questions ranging from new cigars and new factories, to production, battling counterfeited habanos, to possible future agricultural constraints: CW: The cigars from 2003 are considered to be some of the best in recent memory. What factors do you attribute this? [img border=0 hspace="4" vspace="4" align="left" src=http://www.tobaccochina.com/english/picture/mvc-753f.jpg] MM: In the last years, important investments have been made in the tobacco production with views to guarantee the necessary resources: investigation and development, tobacco houses for the maturing of the leaves, soil maintenance, better conditions of storage throughout the entire production process, remodeling of the factories—everything that results in better harvests and an end item of superior quality. The key word is the nonsingle quality in the production, but also in the distribution. Habanos S.A. tightly controls the quality of the product from the beginning of production to storage and handling in the warehouses to the exclusive distribution of the habano to ensure perfection. This way, the retail stores may guarantee an affluent product and better service to the demanding smoker who wants quality. Habanos S.A. has been growing and consolidating its international network of specialized stores under the tax exemption the House of the Habano. The results that we have today are the fruit of a strategy focused towards the quality and that the smoker of habanos finds maximum satisfaction. CW: In light of the Edition Limitadas success, are there plans to continue the line or to re-issue some of the older ones, such as the original Montecristo Robusto? MM : The Limited Edition development is an exciting project that we are dedicating much effort. This unique product line responds to the demand of a segment of very select consumption and collecting to that Habanos S.A. wishes to satisfy. By their concept of creation these products are unique and available in only limited amounts. At the moment we no plans to repeat the series; nevertheless, we continue to analyze the possibility to perhaps reproduce these products that have had greater acceptance, maybe in the occasion of an anniversary or celebration. [img border=0 hspace="4" vspace="4" align="right" src=http://www.tobaccochina.com/english/picture/mvc-745f.jpg] CW: Habanos S.A. is stepping up the modernization of factories and production techniques to provide better working conditions, thereby producing even higher quality product. What details may you provide on this refurbishing and, in some cases, the complete construction of new factories? MM : At the present time all the factories count on artillery systems, which are part of the quality control. As previously commented, we are immersed in a constant process of improvement; in this sense, the development has been predominantly intensive. All the facilities have been remodeled, improving the conditions for production. For example, in the case of the legendary H. Upmann factory, the entire operation has been transferred to a more modern factory, offering better conditions in space and organization. Soon we will also transfer the historical Crown Factory for another location, and in its place will become the Internancional Museum. This year we plan to build a new factory which will be designated only for the production of Special Productions and Limited Editions, due to the high degree of specialization of this type of small-scale productions. CW: The smoking public has a fascination for irregular sized cigars: Salomones, Diademas, and other special sizes. We have noticed that Habanos S.A. is now producing more of these, as well as sizes such as the Extravaganza. Is this a trend that will continue? MM : For the consumers of the appeared formats we have incorporated two Salomones, a standard of this type of habanos. Due to the high acceptance by this type of habano, and to offer smokers a variety of flavors in these formats, we thought to develop them in other marks, although in amounts limited like specialties. Manuel Garcia Morejon, Commercial Vice-President of the Habanos S.A CW: Share with us the details of the soon-to-be released Montecristo Edmundo. MM : The creation of the Edmundo responds to the demands of the lovers of Montecristo of a new format to savor something more of the wealth of this Marca. The result is a vitola of heavy caliber, whose combination of trap and length offers a Montecristo to us of great identity. With this new vitola the character of the mark Montecristo, the more well-known and sold mark of habanos in the world is fortified. The world-wide launching of Edmundo will be in May of this year in Paris and we are sure that it will captivate all and it will become a jewel of the Montecristo mark. CW: Could you summarize the achievements of Habanos S.A. in the past year? MM : The concluded year was intense filled with great satisfactions. There were several important events that defined it. Our portfolio of habanos became rich with new formats and packages demanded by our smokers, and they were commercialized, destined to a more demanding consumer segment through new limited editions and special productions. One of the excellent facts of the last year, without doubts, was the conclusion of the vitola Cohiba Century series (Siglo), a format created exclusively for the celebration [of Columbus's discovery of the West Indies and 500 years of tobacco]. Another mark that stood out significantly was Trinidad, when at the end of year, with the launching of three new vitolas in its regular vitolario: Kings, Colonial and Robust Extra, done totally by hand, of long gut and who are not in any other mark of habanos. CW: With the ongoing success of the Habanos S.A. lines, counterfeiting continues to plague these noted labels. What is being done to combat this black-market trade? MM : The daily routine of our corporation is the fight against the contraband and the falsifications. The habano as luxury product must be protected against this plight. In this sense, several measures have been taken. At the moment General Customs of the State of Cuba has reinforced the customs controls. In addition a new resolution of the Cuban customs was approved, that took effect in October 2003, which establishes that all travellers are forced to present a copy of the original invoice of the store when they carry in their luggage more than 23 units of habanos. The habanos must be in their original packages showing all official seals, including a new holographic seal created specifically to identify the habanos commercialized in the network of stores in Cuba. CW: In regards to the recent hurricane; what effect did this have on crop production and the agricultural scheme of the country overall? MM : Regarding this atmospheric phenomena we worked intensely to repair the damages that were for the most part limited to the tobacco houses, some of that were destroyed totally. Nevertheless, there was no effect on stored tobacco that was in facilities outside the affected zone. In addition, the recovery of the number of necessary houses for the harvest and of the damaged seed plots was made in a relatively fast period, concluding there was little reason to appraise any negative impacts on production. CW: What plans is Habanos S.A. making for the ending of the U.S. sponsored Cuban and opening of the U.S. Market? MM : The American Market has a very important weight in the world-wide market of our products and although at the present time the sale of habanos is not possible, a great culture of the habano exists and there are many followers of our products in that market. Before the possibility of an opening of the American market for the habanos, we are prepared to create the conditions opportunely, to be able to provide to this market. It is important to indicate, that in this case, Habanos S.A. will distribute to the American market, without reduction of its traditional markets. CW: With the increase in the popularity of cigars, and the subsequent demand and strain on native tobacco crops, does Habanos S.A. harbor any concerns about producing enough high-quality tobacco to keep up with market demands? Would the company ever consider introducing foreign tobacco into its products to make up any shortfalls in production? MM : As I commented in the previous questions, we can create the conditions to respond to an increase of the demand. Enditem