TRADITION & INNOVATION: THE KEYS TO SUCCESS

EXCLUSIVE INTERVIEW WITH LUIS SANCHEZ-HARGUINDEY AND INOCENTE NUÑEZ BLANCO, CO-PRESIDENTS OF HABANOS S.A.

Year after year, the Habano Festival reinvents itself. It always amazes guests, delegates and specialized press that come together for the main international event on the best premium cigars in the universe.

As it does each year, the Excelencias magazine is pleased to interview the copresidents of Habanos S.A., Mr. Luis Sanchezharguindey and Mr. Inocente Nuñez Blanco, in order to talk about the new elements within the festival, Habanos's international turnover, as well as new challenges and goals in a bid to make the fiesta dedicated to the finest cigar on earth even better.

What new elements will the Habano Festival have to offer to guests and attendees in its 21st edition?

I.N.: The Habano Festival is always trying to innovate and surprise its guests. Last year, we enjoyed a moving and special Festival dedicated to its 20th anniversary, and this time around we will be celebrating the 20th anniversary of San Cristóbal de la Habana, which also commemorates the 500th anniversary of the Cuban capital, as well as the 50th anniversary of one of our most prestigious brands, Trinidad. As you can see, this is also going to be a unique and unrepeatable Festival.

The Habanosommelier contest has been removed from the event's official schedule this year. Is there any specific reason behind this decision? Are we going to see any other significant change?

L.S.H.: We are not going to have a Habanosommelier competition this year, which would have been its 17th edition, and the reason is quite simple. As co-president Mr. Inocente Nuñez pointed out, we are always trying to innovate and introduce new elements for our Festival to be an unparalleled event.

We had a new contest last year, Habanos World Challenge, to recognize the greatest aficionados within the Habano realm. It was very successful.

Therefore, we presently organize two high-level contests, one for Habanosommelier experts and the other one is focused on cigar aficionados. We want each competition to have its exclusive space and time. That is why we have decided to alternate these contests so they can be paid all the attention they deserve.

Moreover, I would like to highlight the use of new technologies this year, not only at visual level at night, but also in digital terms throughout the Festival. We have developed the Festival's own app, Habanos World, and I hope everybody has already downloaded it, which will deliver a more intense and interactive experience during the Festival. This is all about taking the week-long events and our brands closer to Habano enthusiasts, so they feel part of this Festival.

Which products will be launched during this year's Festival?

I.N.: Since this year marks the anniversary of two outstanding brands within our portfolio, we will have several newcomers.

Two San Cristóbal de la Habana-related products will be launched: San Cristóbal de la Habana 1519, an unprecedented vitola within the brand's portfolio, created to commemorate the 500th anniversary of the city, to be showcased in a special Humidor with 100 Habanos, 500-humidor limited edition. San Cristóbal de la Habana 20 Aniversario will be also joining La Casa del Habano exclusive network of specialized stores.

On the occasion of the 50th anniversary of Trinidad, we thought that it is the perfect moment to boost the brand by launching three

new vitolas. Trinidad Esmeralda, Media Luna and Topes will be enriching the brand's regular portfolio, which will benefit all enthusiasts of this delicious Habano.

As if this were not enough, this is the first time we have a figurado-format Habano in the brand's history: Trinidad 50 Aniversario. Trinidad 50 Aniversario is put out in an exclusive humidor, developed in collaboration with prestigious Italian DEART workshop. This is a series of 100 unique and numbered humidors, storing 50 Habanos each, and one of them will be auctioned during the Gala evening.

We cannot forget about the other brand to be taking center stage at the Festival, Hoyo de Monterrey and its Gran Reserva cosecha 2013, since we are sure that it will be successful.

How does this year's edition join the celebrations for the 500th anniversary of the foundation of San Cristóbal de La Habana?

L.S.H.: One of the Festival nights will be dedicated to this celebration.

Our portfolio is lucky to include a brand that was named after this city, San Cristóbal de La Habana, which is also celebrating its 20th anniversary. Therefore, we have the perfect opportunity to dedicate a night to the celebration of both anniversaries.

Actually, we have gone farther and, as announced by Mr. Nuñez, we have launched a special product within the brand to commemorate the 500th anniversary of Havana. This city was the cradle of the brand and we also want it to host this new launch.

How about the turnover of the world's best cigars in international markets? Which are the most outstanding regions?

I.N.: Once again, this has been a successful year for Habano sales, putting good numbers on the board in terms of both volume and value, and keeping a market share in the neighborhood of 70 percent in those markets where we sell Habanos.

The top five markets for Habanos as far as volume is concerned are -in that same orderspain, China, France, Germany and Cuba. Four of them have posted growths in both the number of units sold and in sale revenues, and only the French market slumped, mostly due to the new fiscal legislation levied on tobacco products that have made prices soar around 8 percent, with the corresponding decline in consumption.

The rest of the major markets have seen their sales grow. Overall, that makes us very proud of the outcomes we have yielded in 2018 and encourages us to move into 2019 with renewed ambitions and optimism.

We have already lived the first twenty years of the Habano Festival. What challenges and goals will be entailed by the organization of the event from now on?

L.S.H.: Having spent twenty years as the most important premium-cigar event of the world is already a huge success. This is the outcome of a highly ambitious work philosophy that helps us better ourselves every year, but we want to go farther. As market leaders, our challenge is to go beyond expectations and offer new experiences for Habano aficionados.

We will have innovations this year during the Festival, so we can deliver a more interactive, digital and experiential event. Our goal is to keep on offering Habano enthusiasts a unique experience, which combines tradition and innovation as a success formula.