Cuban Cigar Shortage. . . Why?

[jimjim99]

[quote author=Garbandz link=topic=55707.msg214484#msg214484 date=1671581685]
[quote author=jimjim99 link=topic=55707.msg213390#msg213390 date=1666287161]
In general I think people are panic buying.


Panic Buying WHAT ?

nothing to buy !!
[/quote]

Foh sells out daily good stuff in seconds.

[alwayslit]

[quote author=Johnny-O! link=topic=55707.msg212239#msg212239 date=1661788789]
1. China
2. China
3. China


[/quote]


...this and the same goes for HTF pipe tobacco as well.

[Corona84]

Some people just make China out to be the culprit for everything, lol. It's just weird...

[perfectoman]

[quote author=Corona84 link=topic=55707.msg215239#msg215239 date=1674970340]
Some people just make China out to be the culprit for everything, lol. It's just weird...
[/quote]

Yes it is! 

[Dmex]

I started to see the availability of cigars dwindle from my trusted online sources back in 2021 and then vanish in 2022.  There has indeed been an impact due to fertilizer shortages, supply chain disruption for packing materials, covid, and decline in tobacco growth.  The biggest impacts from what I have read was the increase in demand due to the pandemic.  Specifically in Europe, Spain to be precise, the consumption of cigars increased and reached (surpassed) the Chinese market.  So, low supplies matched with an historic increase in demand created the shortage. 

But the biggest impact to pricing has been the involvement of the Chinese investors into Habanos.  They sought out to unify the pricing in Cigars so that all prices were set to the Hong Kong Market, which has some of the highest taxes on tobacco anywhere in the world.  That pricing fix means that we are all now paying Hong Kong prices for Cuban cigars without any true benefit or increase in quality or availability.  The purpose of this pricing is to make profit.  (568 million in revenue for 2022, a 15% increase from previous year, they have also annouced an additional price increase for 2023).  Habanos aim is to make the brands we have known and enjoyed for years (Cohiba, Trinidad, Montecristos, Romeo y Julieta) a luxury item that can only be purchased by the wealthiest consumers, or as collector items by the Chinese who love French Wines, Italian Sport Cars, Designer Clothes, and now Cuban Cigars, and the occasional smoker who is dumb enough to pay $100/stick for the occasional vacation f*ck it purchase.  But what happens to the rest of us who have supported the industry through their ups and downs such as the cigar boom and eventual collapse and a decade of overproduction that lead to bad quality of cigars.  This bubble will also burst, hopefully they survive it and things will return to normal.  If they continue this way, I, like most of you will have to find other avenues for the everyday stick.  Cheers!  https://tobaccoreporter.com/2022/11/01/moving-forward-2/

[canadianbeaver]

Terrific post @Dmex and like how it says you are a newbie from 2013. Yeah, right. 

“If they continue this way, I, like most of you will have to find other avenues for the everyday stick.”

Exactly. Was a Cuban purist, now 60cc/40nc. This would shock me a while back. Our cigar club inventory list had to have offerings that are obtainable for members, but still minimal variety as I only acquire cigars I consider collectible. Davidoff, Tatuaje, top level Fuente, Padron.

I am not a shop, I am a collector who runs a club?

This is why OLH info is terrific. Thank you for that article. It will be in newsletter today, brother.

CB

[Uncle Lou]

CB, what do you mean by “runs a club”, is it like they buy through a group deal or just some people that get together and smoke and have an adult beverage or something else if they don’t drink?

[canadianbeaver]

[quote author=Uncle Lou link=topic=55707.msg215525#msg215525 date=1675969752]
CB, what do you mean by “runs a club”, is it like they buy through a group deal or just some people that get together and smoke and have an adult beverage or something else if they don’t drink?
[/quote]

We live in a small town with lots of golfers etc. and cigar lovers. We have a cigar club with about 60 members. I send them a newsletter at least once a week and they like my collection. A lot.

When we have a herf they smoke by our pool or we go to their places. Beer, wine or whiskey, BYO. Or whatever.

CB

[Uncle Lou]

Sounds nice, now we just need some warmer weather to enjoy that pool! Thank you for the explanation, everywhere is different and we find a way to do what we enjoy.

[Corona84]

Any updates on this shortage? I figured this thing would be over by now but it seems to have only gotten worse... It's hard for me to imagine that all of a sudden the Chinese just got super interested in Habanos and they're just gobbling them all up. How is that even possible? If you understand how the HSA distributer network is structured. It's not really possible for Chinese people to buy up all the Cuban cigars in the world. There has to be more to it than that. It reminds me an awful lot of the Rolex watch shortage that started a few years back and is still going strong. They were there on minute then gone the next. I'm well aware of exactly what's going on with Rolex. Greedy flippers cornered the market and they buy up damn near everything in sight or at least all the highly sought after models then kick them up to the grey market. This happened quickly. The Rolex authorized dealers, unfortunately, don't see them as flippers, but as "special preferred loyal customers." At the end of the day Rolex doesn't give a shit if their REAL loyal customers get screwed so long as they keep turning record sales.