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TOBACCO BUSINESS INTERNATIONAL
MARCH/APRIL 2015
wonderful product; however, variety
is the spice of life when you’re a cigar
smoker now. While there may be some
heavy impact in the short term [of the
embargo lifting], like anything else, the
novelty will wear off and it will be back
to regular [mixed] business.”
Vitale is also quick to point out that
there are those in this country that have
been obtaining Cuban cigars illegally
for quite some time,with the knowledge
and understanding that they are just
one version of a good cigar. “Americans
get what they want whenever they
want,” and sometimes they want it
more if they’re not supposed to have it,
according to him. His thinking is that
sooner, rather than later, the mystique
will wear off if they are freely traded in
the U.S.
Can of Trademark Worms
If the embargo is lifted, it is also
expected to open up a can of worms
regarding brands and trademarks.
For every Cuban brand, there is now
(since the ’70s) a U.S. trademark and if
Cubans are allowed back in, there will
be two companies with the same brand.
“So that will be a big fight,” Gray says.
It will be “confusing” with the
possibility of brand deals being made,
according to DiMeola, who envisions
the likelihood of brand names/labels
paralleling one another, distinguished
only by their country of origin on the
label. For instance, there might be a
Monte Cristo Dominican Republic
and a Monte Cristo Cuba. “It will
complicate matters, but it will also
stimulate interest,” he maintains. “Of
course, Cubans will have to compete
on the same level playing field as the
rest of the market and the consumer
will determine which they like best,”
DiMeola reiterates. “Cubans will also
have to be priced correctly. People are
not going to pay $20 [per stick].”
From a manufacturer’s perspective,
Jose Collado, president of boutique
brand Don Rigo Premium Cigarros,
is somewhat skeptical of an immediate
boom to business. “Eventually, it might
be good for the industry overall, but
I believe that even if they break the
embargo, Cuban cigars are still going to
be hard to come by for a while because
of the taxes and red tape you’ll have to
go through to get them.”
Positively speaking, Collado sees
a long-term prospect for making
the market more competitive on the
manufacturing side,and more profitable
on the retailing side.
While agreeing on principle,
Vitale believes the effect of a lifted
embargo will be felt much sooner
on traditional premium cigar
manufacturers, particularly boutique
brands such as his. “I expect our
business will slow down a bit and
attention will sway because of Cuban
cigar curiosity,” he offers. “But I don’t
think the effects on people like me
will be long term. I travel the world
searching to find the best presentable
tobacco and I am confident in the
ingredients in my cigars. After cigar
enthusiasts are done sowing their
oats with Cubans, they will come
back after six to nine months. I don’t
“Eventually, it might be good for the industry overall,
but I believe that even if they break the embargo,
Cuban cigars are still going to be hard to come by
for a while because of the taxes and red tape you’ll
have to go through to get them.”