Intertabak AG struggles for Cuban cigar supply in Switzerland
Cuban cigars, a symbol of pleasure and luxury, are facing a challenge in Switzerland. Habanos SA, the Cuban government-run organization responsible for the worldwide export of these exclusive products, will significantly reduce deliveries to markets where it does not have full control over distribution. Switzerland, which is known for its fondness for these cigars, is also affected by this measure. In May 2020, it was announced that the shareholder of Habanos S.A., the tobacco group Imperial Brands, had sold its shares to a Chinese consortium for 1.225 billion euros.
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Reduced deliveries despite significant participation
Habanos SA holds a 50 percent stake in Intertabak AG. The remaining shares belong to the local Villiger and Lévy families. Intertabak AG handles imports into Switzerland and the Principality of Liechtenstein. As Habanos S.A. does not hold 100% of the shares in Intertabak AG, the Swiss market will be confronted with reduced supplies of Cuban cigars as a result of Habanos S.A.'s new strategy.
Information policy and ongoing uncertainty
Intertabak customers were informed of the worsening supply bottlenecks at the beginning of April. It is currently still unclear how much deliveries from Havana will actually decrease in 2024. However, La Casa del Habano stores in Switzerland are not exempt from this tightening. This uncertainty is unsettling the trade. The reasons for this have not been explained to the specialist trade. This is understandable, as Intertabak AG certainly does not receive all the information from Habanos S.A. either.
Possible long-term consequences
Habanos SA's restrictive supply policy could lead to lasting changes on the Swiss market and worldwide, which is already facing global challenges such as stricter health regulations. The pressure on Habanos SA and its trading partners is growing.
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I hope you enjoyed my latest article and found the information it contained interesting. I am very excited to hear your views and look forward to reading your comment 🤗
Informative article!
What I don't quite understand, Habanos SA wants to have 100% influence, what does that mean specifically, 100% takeover and or who is really behind this desire?
As a traveler to Cuba and lover of this Caribbean pearl, it is clear to me that Cuba works differently and is and will always be an island with many unknown and unfathomable events; I simply cannot and do not want to imagine that Cuba will not simply throw relationships and friendships with Heinrich Villiger, Samuel Menzi and Urs Portmann, to name but a few, to the wind.
I'm on the case. The situation is delicate. The Chinese investors play an important role. As soon as I have all the facts with sources, I can write more.
Thanks, I'm looking forward to it.
Moin Roli, in the "new world" it's all about hard Hong Kong dollars $. Friendships and relationships don't weigh as heavily as mammon. The consortium from Hong Kong does not have these friendships. They have invested around 1.2 billion dollars in 50% Habanos S.A. and now want a return. If, for example (I don't know the exact figures), Mr. Villiger and Habanos S.A. each hold 50% on 5th Avenue, the margin on the distribution share will be split accordingly. Here the consortium would prefer to hold 100% in 5th Avenue in order to pocket the entire profit itself. The distribution partner for Belgium + Netherlands + Luxembourg is Laguito 1492 NV. This belongs to 100% of Habanos S.A.. Here, the entire profit is collected by the company itself. For this reason, no delivery quotas are withdrawn from this distribution partner. Habanos S.A. also holds distribution in France and Spain itself at 100%...... and this is how Habanos S.A. would prefer to keep it worldwide. Who knows, who knows, if you overstretch a string, it's bound to snap. If all suppliers of cigars get together and throw Cuban cigars completely out of the range for the time being, the Honkongnese could put the 100% share where the sun never shines...and if the nimbus of Cuban cigars then shows the first cracks, dark clouds could gather there too.
PS: ...the other half of Habanos S.A. still belongs to Cuba. One could exert influence from there. However, it feels like they prefer to duck out, leave the distribution policy to the consortium and gladly take the foreign currency with them.
In this respect, the Cuban president has intervened himself. The Chinese investors negotiated directly with him to assert their interests. I have the source for this.
Thank you, that confirms my impression that since shortly after the takeover of the Honkongnese, they have been in complete control here and are carrying out their sales action plan painlessly and "regardless of losses". Cuba automatically participates in this. From the "arguments" put forward by the investors to the Cuban president, he will probably be able to have a few nice days, that's how business works...with "diplomacy".