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24TOBACCOOUTLETBUSINESSNOVEMBERDECEMBER2009eventhoughsmokerscouldnx19tgettheCubanbrandstheycertainlyreadaboutthemx1dherelays.x1cClearlytheywereatthetopothelistoallcigarsatonepoint.Tedix2erencetodayisthattherearetremendousbrandsthatwerenx19taroundwhentheembargowasputintoplace.Itx19sgoingtobeinterestingbecauseiitopensuptherex19snotenoughbeingmadetosupplyeverybody.WhenitdoescomewesurelywouldlovetohavesomeCubanstosellbutnobodyknowshowitx19sgoingtoworkandwhenandhowwewillgetthem.x1dSomeanwhilex1cobaccoDepotisbuildingitscigarbusinesswithx1cgreatproductsromtheDominicanandHondurasx1daccordingtoHoyland.x1cWehavegreatcigarsandwex19renotmissinganythingatthispoint.x1dBuildingupcigarinventorystrengthinanticipationotheCubanembargobeinglitedisonetacticretailersaretakingpreparingorpotentialcigar-sellingchaosisanother.x1cItdeinitelyconcernsusinterestsusandwewanttobepreparedoritiandwhenitdoeshappenx1dsaysRandySilvermanvicepresidentoKlaterx19s.x1cIx19dliketobebetterpreparedorthisthanIwasortheoriginalcigarboomothex1990s.Itwasreallychaoticandwhatwouldhappenisyoux19dget20orsocallsadaytoseeiyouhadthehottestbrandsandiyoudidnx19ttheyx19dhangup.Iwanttomakesureweminimizealotothatthewasteulcallswherepeoplearejustkindoishing.Idonx19twantittodisruptourbusiness.x1dSilvermanisalsomindulohiscurrentcigardemandandgauginghowitmightbeax2ectediCubancigarsshouldbecomeaU.S.reality.Eventhoughitx19simpossibletoknowhowitwillplayouthisconx1dencethatheandothertobaccoretailerswillx1gureitoutisprettyhighthankstowhattheindustryrecentlywentthrough.x1cAtersurvivingthewholeSCHIPtransormationmostdistributorsandretailersinourmarketcansaytheydigestedaprettybiganimalx1dSilvermanmaintains.x1cIx19mthatmuchmoreconidentnowwecanigureoutCuba.x1dTOBItwilltakemorethanalitedtradeembargoorCubancigarstofowreelytotheUnitedStates.HerearesurroundingissuesandideastoconsiderSwedishMatchsellscigarsintheU.S.madeinHondurasandtheDominicanRepublicunderCubanbrandnamesitboughtthebrandsromamiliesthatfedCubaaterFidelCastroseizedtheircigarcompaniesinthe1960sreportedBloomberg.comrecently.MeanwhileImperialx1cobaccoGoupdistributesCuban-madecigarsundermanyothesamenamestotherestotheworldthroughanagreementwiththeCubangovernmentmonopolyCubatabaco.ExpertssaybeoreseriouscommerceresumesthesetwowillhavetoresolvetheissueowhogetstheexclusiverightstoselltheCuban-madebrandsintheU.S.LiftingtheCubantobaccoembargoopensuptwogatewaysaccordingtoFredHoylandox1cobaccoDepot.x1cOneisanall-CubancigarmadeinCubaandtheotherisaHondurascigarmadewithCubantobaccox1dhesays.x1cTeall-Cubancigarwillhavesomanylimitationsduetopoorproductionlevels.ItheUSAopensupitwillbehugethereisjustnotenoughproductoutthere.x1dTatx19swhyHoylandbelievesax1csecondphasex1dx14usingCubantobaccooaspecialblendbutactuallymakingitinHondurasorelsewherex14isalogicalollow-upstep.x1cButthatwilltaketimetooevenithetradingopeneduptomorrowx1dhesays.BecauseofitscommunisttotalitariangovernmentCubaprobablywonx19tx1copenupx1dinthebroadersenseothattermbelievesJeanEdmondambassadororGrayclix2CigarCo.x1cTetimecouldcomewhentheydonx19tquitex18openupx19butwecouldstillbuytheircigars.WemayhavecertaintraderestrictionswithCubabutcigarsmightnotbeoneothemdowntheroad.Tatwouldbeagoodthing.Itwouldenhancethediversix1cationothecigarculture.Peoplewouldbeabletotastethedix2erencesandmakegoodchoices.Itwouldbelikesugaroranythingelsethatcountriesexportorimport.x1dTurningOveraCubanLeaf