CUBANET ... CUBANEWS

July 19, 2001



Cuban counterfeit cigar production reported to be on the rise

By Jay Amberg Bloomberg Lifestyles. Bloomberg.com/ Thu, 19 Jul 2001, 11:37am EDT

Pinar del Rio, Cuba, June 20 -- Counterfeit cigar production is on the rise in western Cuba, according to reports in Cubanet, an independent news source from Cuba. (Commerce in counterfeit cigars on the upswing / UPECI)

Cubanet said there's a growing demand for experienced cigar rollers in Pinar del Rio province on the southwest coast, where most of Cuba's prime cigar tobacco is grown and harvested.

According to Victor Arroyo, an independent Cuban journalist, since Jan. 12, secret, non-government cigar factories have been raided by Cuban police and tobacco and packing materials were seized at all locations.

Arroyo said reasons for the rise in counterfeit cigar production in southwest Cuba are the availability of tobacco from local farmers and an increase in demand from tourists for cigars cheaper than the legitimate brands sold in government stores. Both farmers and cigar rollers can make more money working on their own rather than for the government.

Cubanet said farmers have been hiding some of their tobacco harvest from government representatives and selling to middlemen who take the tobacco in small quantities to so-called "safe- houses'' where the cigars are rolled and packaged for sale.

Cubanet reported the Cuban government has created a special task force of police officers called the Response Group to Tobacco Traffic to track down and arrest anyone found counterfeiting cigars.

As an example of the difference in cost between counterfeit Cuban cigars and those made in government factories, on a recent trip to Cuba a box of 25 Cohiba Esplendidos (Cuba's most expensive commercially produced brand) could be purchased in a government tobacco store in Havana for $384, while a box of illegally manufactured Esplendidos was going for $75-$100.

©2001 Bloomberg L.P. All rights reserved.



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