Cuban cigar shortage, part 2

Dear cigar-loving friends,

Last week's article in our newsletter and blog generated a strong reaction from aficionados, with messages of concern, friendship and support, as well as a huge number of questions.

To continue the reflection shared in this article, here are a few lines that might interest you.

It's essential to understand that the situation we're all living through is the vector of moments of rare intensity; the multiple changes we've been facing for over a year are extremely rapid, profound and are challenging our industry on several levels. One of the points I'd like to stress is the almost certain risk of industrial concentration. In fact, in the tobacco sector, the first phase of this industrial concentration began in the early 2000s, followed by subsequent phases in the early 2010s and 2020s. In fact, as we emerge from the COVID-19 crisis, there is no doubt that it will intensify.

When it comes to industrial concentration in the tobacco sector, there are several points to consider: concentration at the premium cigar production level, tobacco trading, distribution, and finally retailing. Companies are on the warpath, sharpening their weapons for the battles ahead. Some have already begun implementing their strategy. If quality, diversity and supply can be preserved, then aficionados will be the winners. But until when? When will the system and its constituent forces regain stability? To date, I don't have the answers to these questions.

Problems relating to stock management
The problems we are striving to manage to the best of our ability are unfortunately not limited to Cuba. Various sizes of cigar brands from Nicaragua, Honduras and the Dominican Republic are already experiencing supply difficulties. That's why we try to buy as many good-quality cigars as possible from reputable brands, not only in large formats that are difficult to produce upstream, but also in more common sizes. In our ageing cellars, we stock vintage cigars as well as more recent cigars from a wide range of terroirs. One of my suggestions would be, wherever possible, to broaden your taste horizons, to get off the beaten track and away from your usual cigars, by moving towards other brands and other formats.

For investors
With scarcity usually comes counterfeiting. This makes it all the more important for cigar collectors to buy their boxes of Habanos from reputable sellers approved by the official importer. Not only is your specialist's accreditation a key to the added value of your cigars, but their value will also be enhanced by the seal your dealer/specialist will have put on the box you have purchased, a guarantee of authentic, controlled, quality merchandise. It goes without saying that cigars sold through a specialized network, accredited by Swiss brands and importers, will be worth more than other cigars from non-accredited merchants. In fact, every day we receive calls from customers all over the world asking us to certify, verify and authenticate the cigars they have purchased in recent years. It's important to specify that our work in this field is limited to our expertise on cigars from the sales of our own boutiques: La Couronne SA & La Casa del Habano - Nyon. We only deal with high-potential vintage products acquired from other accredited and renowned specialists. There is no point in contacting us about products not acquired from non-accredited merchants.

Edicion limitada
These types of cigars are produced in very limited quantities and have excellent aging potential. Naturally, the leaves selected for these limited editions are chosen specifically because they will age magnificently well over an extended period. The Reserva de Habanos lines are a case in point, where tobacco growers meticulously select certain leaves. Blends with a darker wrapper and a more pronounced taste are the ones to look for, as their aromas are preserved much longer than those of cigars with lighter blends.

The leading brands driving the Cuban cigar market
It's no great secret that brands like Cohiba, Montecristo and Romeo y Julieta, Partagas are the brands to collect. If you're new to stocking cigars, choosing these brands is a good first step. For better aging potential, opt for full-bodied brands such as Bolivar, Punch or Partagas.

Aging your cigars.
It's widely recognized that the older a cigar is, the higher its value. Just look at the value of pre-embargo cigars, which for some cigars has more than tripled compared to their original price. What's more, some cigars are no longer on the market, which can considerably increase their price. Finally, like wine, the flavor profile improves with age. To start maturing your cigars, you'll need an excellent humidor. If your goal is optimal preservation, invest in a private humidor rental from your authorized cigar merchant. Any cigar merchant worth his salt will offer this kind of box to his customers. This not only saves you the trouble of constantly checking the humidity and temperature of your precious cigars, but also gives you the certainty that your cigars are safe and perfectly preserved.

As long as the right conditions are maintained, cigars can be stored indefinitely, from a few months to over 30 years. The ideal temperature and humidity for vintage cigars are generally 69-70% humidity and a temperature of around 16° Celsius. As far as humidors are concerned, if you want one, opt for the most efficient and prestigious on the market, choosing from : Elie Bleu Davidoff or Swisscave cabinets/cellars. It simply doesn't make sense to keep cigars costing from 50 to 700 chf each in a 200 chf humidor.

Arturo FuenteDavidoff, Padron, Ashton, La Estancia, La Flor Dominicana, Pepin Garcia, etc... Beginning of a shortage of major brand cigars
As previously mentioned, this shortage is already having repercussions on prestigious non-Cuban cigars such as Davidoff, special series, and Winston Churchill by Davidoff Late hour series ; Arturo Fuente, almost all ranges; Padron for more than a year; Pepin Garcia ; La Flor Dominicana, etc...

What applies to Cuban cigars, now also applies to cigars from other terroirs
Aficionados the world over have long since recognized that terroirs other than Cuba offer products of exceptional quality. These brands have also become collector's items around the world, and are the object of speculation on numerous auction sites. The problems facing the cigar industry are identical to those currently facing other industries, i.e. shortage of raw materials and logistical difficulties. According to experts, we may not emerge from this crisis until the last quarter of 2022. This is, of course, without taking into account the risk of major inflation associated with this situation. As far as premium cigars are concerned, the problem is likely to last much longer. Handmade cigars are not made at the touch of a button. It's a long, painstaking process that demands attention. We're in an industry where we have to give time to time.

As you can see, the supply of cigars is likely to deteriorate further over the coming weeks and months. Of course, we will do everything in our power to continue to offer you the widest possible assortment. As those who know me well know, all this is not an effort to prop up sales by suggesting a shortage, but the advice or suggestions of a professional who loves the product he sells and wants the best for the cigar lovers with whom he shares this passion. I can only reiterate my suggestion and advise you to stock up on your favorite products while they're still available, as we can't be sure of being able to guarantee stock levels over the coming months. Variations in availability will be very significant, stock-outs extremely frequent, and we have no visibility on product restocking.

I'd like to thank you all for your comments, your pertinent questions and your testimonials, reflecting the strong bond we share: our passion for cigars.

Cigarement vôtre
Alexis Aazam Zanganeh
Owner

The La Couronne SA group is 100% dedicated to the passion of cigars, with more than 20 people working every day to satisfy your needs and present you with the world's finest cigars in workspaces totalling more than 1,000 m2.

Our two boutiques offer a unique range of products in Switzerland, with over 340 m2 of display space in Nyon's lakeside Rive district.

www.cigarpassion.com

www.lcdh-nyon.com

www.la-casa-del-habano-nyon.com