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December 28, 2000



Cuba News

Bloomberg

Bloomberg.com. Thu, 28 Dec 2000, 11:54am EST

Cuban tobacco officials get a sales pitch from U.S. farmers

By Jay Amberg Bloomberg Lifestyles

Havana, Dec. 27 -- Don't expect your favorite Cuban cigar to be manufactured anytime soon using tobacco grown in North Carolina, but Cuba's brand of Cohiba cigarettes could include U.S. tobacco leaf in the future.

According to a recent article in the Charlotte Observer newspaper, the Leaf Tobacco Exporters Association, a North Carolina-based trade organization, has sent representatives to Cuba to try and sell Habanos SA, Cuba's marketer and global distributor for its cigars, cigarette tobacco.

A 22-member trade mission, organized by the North Carolina Department of Agriculture, visited Havana with the intent of warming the tobacco-savvy Cubans to the quality of its tobacco.

Spearheading the sales effort was state Sen. Allen Wellons (D- Johnston) and Tommy Bunn, executive vice president of the Leaf Tobacco Exporters Association.

Tobacco leaf used in the manufacturing of premium cigars is costlier than the thicker and mild tasting leaf that used for cigarettes.

Cuba, which grows exceptional tobacco for its premium cigars, has a difficult time raising premium tobacco leaf that's used exclusively in the production of cigarettes.

Despite the fact many Cubans smoke domestic and imported cigarettes, Cuban President Fidel Castro has been a vocal critic of smoking. Castro even quit smoking his favorite cigars to encourage other Cubans to follow his anti-smoking campaign.

Even if there were no embargo, it's unlikely Cuba would buy the premium cigarette tobacco grown in North Carolina, because of costs and a lack of demand.

The newspaper said one source of demand would be an increase in American tourists visiting Cuba, but that would require an easing of U.S. travel restrictions to the island.

According to the newspaper, while the North Carolina trade mission knows Cuba isn't a huge market for any crop, U.S. tobacco exporters are seeking new destinations for their crops because the industry has taken a political, financial and legal beating in the past two years.

Cigars lovers will soon be able to enjoy top cognac in Havana

By Jay Amberg Bloomberg Lifestyles.

Havana, Dec. 28 -- Move over Havana Club rum: Cigar aficionados visiting Cuba will soon be able to enjoy one of France's great Cognacs.

The prestigious French Cognac Remy Martin and the citrus- based liqueur Cointreau have entered Cuba's growing market for spirits and alcohol-based beverages, according to Granma, Cuba's state newspaper.

"Given the rapid expansion of the Cuban economy, why not be in Cuba?'' Jean-Myrtil Laurent, a representative of the Remy Martin-Cointreau group told the newspaper. "For us, the Cuban market in the Caribbean is very important, due to the growth in tourism.''

Both French brands were featured recently at the French pavilion at the 18th annual Havana Trade Fair.

Remy Martin and Cointreau have been available at Cuban tourist bars for years, though never through officially negotiated government distribution.

While French Cognac has always been popular with cigar smokers, in Cuba the most popular after-dinner drink with a cigar is rum, usually Havana Club or Ron Matusalem brands, manufactured in Cuba.

Granma said Remy Martin and Cointreau will be imported through Cuba's Juan Mateo SA, whose wine and liquor division will represent Remy Martin on the island.

Distribution of the beverages to Cuba's network of tourist bars and restaurants will be handled by Havana Rum & Liquors SA, Cuba's largest distributor of alcoholic beverages.

©2000 Bloomberg L.P.

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