Cuba cigar records despite supply problems

Cuba cigars set records in 2020 despite supply problems due to COVID-19 There was strong growth at 5^THAvenue in the 2020 financial year. The Cuba importer provided information on 29 January 2021:

Unexpectedly strong business performance brought 5^THAvenue, the official importer of Habanos in Germany, Austria and Poland, achieved a very satisfactory result in the Corona year 2020, which is particularly surprising given the persistently inadequate supply of the coveted hand-rolled cigars from Cuba.

After cigars from the Cohiba brand, large-format cigars, specialities and limited editions had been particularly rare in recent years, there were now also increasingly large gaps in the standard range. This was due to restrictions on cigar production in Cuba as a result of measures to protect employees from Covid-19.

Even though the factories were never completely closed, for the most part only some of the employees were able to work. This was exacerbated by logistical problems caused by drastically reduced flight connections to and from Cuba. 

On the other hand, demand for Habanos from Germany and abroad continued to rise. 

Outstanding Cuba cigar development in Germany

Sales of Habanos in Germany increased by 27.1% in value and 23.8% in volume. Consumption of premium cigars has increased during the coronavirus pandemic. Many aficionadas and aficionados worked from home and therefore had more opportunity to enjoy cigars.

The start of the first lockdown in March 2020 marked the beginning of a very long phase of pleasant outdoor temperatures in Germany. The reduced travelling also led to increased demand in Germany. Specialist retailers with a strong online presence benefited from this in particular. They also suffered less or not at all from the shop closures during the lockdowns. 

A decisive factor in the positive sales development of Habanos (Cuban cigars) was the unbroken high demand from Asian customers, particularly from China and Vietnam. After the coronavirus pandemic was quickly combated and brought under control in these countries, interest among cigar lovers very quickly returned to its original high level.

However, local buyers viewed this development with great concern and annoyance, as they were often no longer able to obtain their favourite cigars from specialist retailers. Even the few new products that came onto the market in 2020 had often already been sold to Asia before aficionados in this country had even noticed. 

The best-selling Habanos (Cuban cigars) in Germany were

• Romeo y Julieta Mille Fleur
• Quintero Favouritos
• Partagás Series D No.4
• José L. Piedra Petit Cazadores

The Cuba cigar brands with the highest sales and turnover were Romeo y Julieta, followed by Montecristo and Partagás. All three brands recorded significant double-digit growth. 

Note from the editors: Cigars.Zone Social Network has published an eBook about the great Cuba cigar brand José L. Piedra in mid-January 2021.

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Strongly divergent development in export markets

Sales to customers in duty free developed in an almost devastating manner. The slump in air travel in the wake of the coronavirus pandemic had a strong negative impact here. Turnover plummeted by 61.8% and sales fell by 66.1%. 

In Austria, the shock of the introduction of a total smoking ban in restaurants in late autumn 2019 was overcome in 2020 and sales increased by 6.7%. Working from home and reduced travelling had a positive impact on consumption. 

The situation in Poland, the youngest and currently still smallest market of 5^THAvenue. Despite tough lockdowns with shops closed for several weeks, Habanos sales increased by 3.5 per cent. 

Speciality retail concepts for Cuba cigars remain important 

The specialist retail concepts „La Casa del Habano“ (currently 15 shops in Germany, 2 more shops in Poland), Habanos Specialist with currently 68 shops in Germany, 33 shops in Austria and six shops in Poland and Habanos Point with 103 shops in Germany played a key role in the good business result in 2020. Due to the inadequate supply of Habanos, the sale of Habanos was particularly focussed on these specialist retailers, whose Habanos sales showed a significant double-digit increase on average. 

Habanos lounges and terraces in Germany provide guidance for cigar lovers looking for suitable places to enjoy a cigar. The first shop closures in the wake of the coronavirus crisis reduced their number to 21 in Germany. 

Cuban Mini Cigars also with significant growth

Sales of Cuban Mini Cigars, the Cuban premium cigarillos, increased for the twelfth year in a row. Cuban Mini Cigars are distributed by 5^THAvenue exclusively in the German domestic market. The global brands, above all the top brands Cohiba and Montecristo, once again enjoyed particularly strong growth. The value-for-money brands Punch and Guantanamera Mini also contributed disproportionately to growth. The success of the Cohiba Short, which was launched in 2016, continued in 2020 with further disproportionately high growth. The Montecristo Short, which was launched in autumn, also contributed to the positive result in this segment. The positive trend is expected to continue in 2021 despite the difficult conditions.

Tips from the editors about Cuba cigars

• All posts about Cuba cigars from the category „World Of Habanos“
• In 2021, the long-awaited Limitada 2019 from Quay d'Orsay to Switzerland