Introduction: Habanos S.A. is a name that needs no introduction in the world of cigars. The company controls the promotion, distribution and export of premium cigars and the country’s other tobacco products worldwide. It was established in 1994 and offers 27 brands of handmade Habanos, including Cohiba, Montecristo, Romeo y Julieta, Partagás, Hoyo de Monterrey and H. Upmann.
Habanos Co-Presidents Maritza Carrillo Gonzalez and Luis Sanchez-Harguindey Pardo de Vera discuss the brand’s strategy in travel retail, introducing the new channel-exclusive Cohiba Vistosos and underlining the passion and pride at the Habanos core. They talk with The Moodie Davitt Report Associate Editor Colleen Morgan.
Habanos is a well-known name in the cigar category. Tell us what the company is doing to ensure its reputation for quality and innovation is maintained.
Maritza Carrillo Gonzalez: Anyone associated with Habanos will tell you it’s a brand based on passion. Like many, Luis and I have both been in the business for many years.
It’s not just about the products; it’s about the people behind those products, from the tobacco growers to the rollers all the way through to the executives. Habanos is pride, passion and a love for Habanos, all rolled into one.
2024 has been a particularly significant year for us, as we celebrate Habanos’ 30th anniversary. This milestone has been an additional source of inspiration to continue working with the same commitment and dedication towards innovation that has guided us through these three decades of history.
Our ambition is to be attractive, not just through the products our customers already know but through new developments, new lines, exciting retail concepts and through offering new experiences, both locally and globally.
Luis Sanchez-Harguindey Pardo de Vera: As a multinational group, Habanos will continue to be a market leader, combining tradition with innovation.
People associate Habanos with a premium market and we want to continue developing as a premium lifestyle company with brands which hopefully meet the needs of our aficionados and attract newcomers at the same time.
What are the challenges facing the cigar industry and how are they effecting Habanos in travel retail?
Luis Sanchez-Harguindey Pardo de Vera: As everyone knows, since the challenges posed by the COVID pandemic, one of our main objectives has been to recover business volumes in these channels to pre-2020 levels.
The main challenge for us is the ever-increasing demand for premium cigars. Habanos is present all over the world and to ensure we meet this demand we need to strengthen our production levels.
Our customers are increasingly looking for more premium and exclusive lines; we need to be one step ahead of any new trends in the marketplace. We have launched exclusive formats, selecting iconic vitolas and developing presentations that are true works of art, such as travel humidors and collector’s editions.
What is the Habanos strategy in travel retail? How important is the channel to the company overall?
Maritza Carrillo Gonzalez: Travel retail is a vital part of our business, representing approximately 19% of our sales. This is a very special channel to Habanos and a key part of our business globally. In some cases, like the in the Middle East and Asia, travel retail accounts for the bulk of our sales.
We need to be innovative, and we need to pay a lot of attention to our customers’ needs in both our existing markets, like Europe, and other countries, like India, for example, which are developing very quickly for Habanos and the brands in its portfolio.
Habanos’ dedication to travel retail is underlined by the latest addition to the Cohiba offer, launched at this year’s TFWA World Exhibition.
| Vistosos is a 53 ring gauge x 145mm/5 3/4in long. This is unique to the Cohiba brand but the same size as the Trinidad Esmeralda. Like many limited-edition Cohibas, it has a pigtail. The vitola is handmade with long filler, crafted from leaves selected from tobacco fields in the Vuelta Abajo region in Pinar del Río, Cuba, considered the most prestigious tobacco-growing area in the world.
Adding to the premium presentation in travel retail, this special edition comes in a ten-piece travel humidor. |
Luis Sanchez-Harguindey Pardo de Vera: Habanos aims to increase the number of limited or exclusive offers in duty free which has become such an important part of the Cuban cigar industry. In the past we have concentrated on exclusive formats, selected vitolas and collector’s editions but this Cohiba Vistosos takes our product offer in the channel to a different level.
Has the ‘profile’ of a Habanos fan/connoisseur changed and what is the company doing to attract consumers?
Luis Sanchez-Harguindey Pardo de Vera: Habanos distributes 27 premium cigar brands across 130 territories. Our strategy to meet any changes in both the domestic and travel retail markets is to continue to offer products which appeal to a wide range of customers, with an eye on younger adult cigar smokers who are becoming more and more attracted by the unique lifestyle and experiences that characterises the Habano.
In this, digitalisation plays an important role. Habanos understands the importance of strong social media and influencer ties. At the same time, we have increased the use of Near-Field Communication, which not only provides product information and often encourages further consumer engagement but also underlines the legality of our Habanos which is increasingly important to put an end to any illicit trading. ✈️
