Friday, January 23, 2015

Great Cigars Coming Soon From Cuba? Wait, Not So Fast....

    
OK, thank you Mr. Obama.  Since you announced the easing of restrictions on travel to Cuba, and access to fine Cuban spirits and tobacco, people want to know what this means to the Cuban Cigar industry, and most importantly, their direct access to it.  My phone, email, social media, and postal box have all been ablaze with that one single question. 

Well I don’t want to disillusion anyone, and in spite of what my GOP thumping friends and family may accuse me of, I do not have direct access to the Administration, and do not participate in creating International policy.  However, please allow me to expand on some of the things I do know about this landmark change and how it is affecting worldwide Cigar markets.

First, I content that the very thing that directly crippled the Cigar industry in Cuba, is the very thing that has helped it thrive over the last several decades.  I will go a bit further, by saying that the Unites States embargo of Cuba is the very thing that has saved and preserved an industry, who by all rights, should have faded into pages of history long ago.


Why is this and how did it happen?  Well, Cuban Cigars have taken on an almost mystical reverence in this country.  Let’s face it, most Cigar smokers know very little about materials, construction, blending, composition, aging, growing technologies, and vertical integration.  They have virtually no understanding of how a new box or product line arrives at their local tobacco retailer. 

When a friend, and we have all had them, was able to sneak a Cuban through our borders either North or South, and we toasted that Cigar with a childlike anticipation, we exclaimed it as a near biblical experience.  Maybe it wasn't actually due to the flavor, draw, or burn of an amazing Cigar, but simply because well… hell, it was a Cuban right?  They have to be great; we were always programmed that they would be, but were they really all that we were led to believe?  Well, no it sure wasn’t, and there were several very good reasons why:

1.  Limited Ingredients:  Cuban Cigars are made strictly from Cuban tobaccos.  That means while huge operations throughout Central America scour the world to find the finest binders and fillers that compose a great Cigar, Cubans are limited to only using tobaccos they themselves can cultivate and manufacture.  This is a significant disadvantage.

2.  Loss of Experience & Skill:  Thanks to Mr. Castro and his Marxist policies in relation to corporate independence and economic growth, the count of viable and surviving Cigar factories have dwindled in Cuba.  What became of this knowledge and experience?  It departed with the growers, rollers, and farmers that fled to other neighboring countries in hopes of a better life.  Not only did they take their talents but they also took with them the very growing seeds, the inner life force of the Cuban Cigar industry.

3. Lack of Competition:  With a lack of competition in the Cuban market, there was nothing to keep the fat cats on their toes, guarding against upstart rivals and investing in their own infrastructure.  Without this motivation, their organic evolution stopped, trapped somewhere in a time warp of the early to mid-1960s. 

4.      No Reinvestment:  You can imagine how this choked off manufacturer re-investments back into their businesses, not only due to the lack of competitive motivation, but also because of the unpredictable and psychotic Cuban government.  It really isn't sound business logic to invest millions into an industry where the government could step in and take possession of all assets and any second.  These companies had other options, and they used them.  Yes, Cigar production is an age-old art, heavily rooted in the talents of hand-rolled artists.  However, technology has showed us that it provides a consistent quality of product.  Not necessarily in the mechanical rolling of Cigars, but in the Quality systems that guarantee a smooth and defined taste, replicated in each product line, down to the very stick. Many of the manufacturers who had operations rooted in Cuba and extending to other Central American markets, chose to put those reinvestment funds into the other countries, and not into an aging and unstable Cuba.

To summarize, the Cuban embargo, the mass exodus of qualified and experienced manufacturers, the underground transport of the Cuban Cigar seed, and stagnation of it’s infrastructure, has allowed the industry paradigm to shift, taking root and thriving in the countries of Honduras, Nicaragua, Dominica, and others.  The Quality Control, robotics, and vertical integration quickly became prevalent in these new emerging Cigar markets while primarily bypassing Cuba.

When comparing the taste and quality of these new products against Cubans, not only would I put the higher end Diamond Crown, Opus X, or Julius Caesar Cigar up against the best Cohiba that Cuba has to offer, I could easily choose from a wide variety of very affordable Arturo Fuentes, Padron, Rocky Patel, or Perdomo Cigars that I know would give the Cuban Cigar makers absolute fits.

I do not know if the position of US Senator Marco Rubio is valid, as he contends that the relaxing of the Cuban restrictions only serves to make the Castro regime more powerful.  Again, that is a little too political for me to intelligently argue.  I do know that all the questions that I am being asked about fresh access to Cuban Cigars can be easily answered with a simple, “It doesn't matter that much really”.  Maybe now we will appreciate all of the hard work and dedication of these Central American growers and the operations that they have built.  Their products really are sensational.


I can only imagine about what our greatest American ambassador to Cuba would have thought about what has happened to its struggling Cigar industry.  Knowing what I do about Earnest “Papa” Hemingway, I would bet he would take a few puffs of today’s Cuban, spit and say, “Well that’s a damn shame”.   I sadly would have to agree with him.

Until next time, keep em long and lit.