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34

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.”