Sales of Cuban cigars hit record

A SURGE in sales of Cuba’s legendary cigars in China helped manufacturer Habanos S.A.’s global revenue rise 12 per cent to hit a record of around $500m last year, the company said at the start of Cuba’s annual cigar festival.

Habanos, a 50-50 joint venture between the Cuban state and Britain’s Imperial Brands, said sales in China, its third export market after Spain and France, jumped 33 per cent in value in 2017.

“Without doubt, there is potential for China to become the biggest market at a global level,” Habanos vice president of development, Jose María Lopez, said.

The Cuban monopoly cigar company’s hand-rolled cigars, which include brands such as Cohiba, Montecristo and Partagas, are considered by many as the best in the world, and the festival attracts wealthy tobacco aficionados and retailers from all over.

Lopez said that growth in global sales of Cuban cigars last year outpaced the luxury goods market, which expanded 5 per cent, according to consultancy Bain & Co. He put sales growth down to several good tobacco harvests and new products.

The Habanos executive said the outlook was also positive, given solid demand and “excellent” climatic conditions. Hurricane Irma, which wrought havoc in Cuba last year, left the western, prime tobacco-growing state of Pinar del Rio mostly unscathed.