Cuban cigars make record sales thanks to growing demand from China

HAVANA: Stimulated by China's growing demand, Cuban cigar sales reached a record $ 537 million in 2018, an increase of 7% over the previous year, despite global laws against cocoa. tobacco, said Monday (February 18) Habanos, a company partially owned by the state.

"China has overtaken France as the second Habanos market," said vice president of the cigar company, Jose Maria Lopez Inchaurbe.

Sales in China grew 55 percent and East Asia as a whole 9 percent, said Lopez.

Marketing Director Ernesto Gonzalez said the numbers showed "the strength of our sales despite the difficulties we have encountered during the year".

The French market was hit by a 17% increase in taxes on tobacco products, which forced Habanos to raise prices by 8 to 10%, said Lopez.

Gonzalez said the numbers were impressive despite the growth of only 1 percent of the global luxury tobacco market in 2018.

Unlike Europe, tougher anti-smoking laws did not have an impact on sales in China.

"The regulatory environment of the tobacco market is getting more and more complicated," said Lopez.

Growth is also occurring despite the continued embargo on Cuban products sold in the highly lucrative United States market.

Habanos belongs half to the Spanish tobacco group Altadis, itself owned by the British giant Imperial Brand.

In 2017, Habanos sales increased by 12%, reaching a record US $ 500 million, again driven by a sharp increase in Chinese demand.