As Cuba grapples with a suffocating economic crisis, the regime hosted an opulent party at Havana's Capitol to mark the 25th Habano Festival. This exclusive "Noche Intermedia" event brought together 600 handpicked guests in the grand Hall of Lost Steps. Attendees indulged in a luxurious dinner, witnessed performances by artists, and experienced the global debut of the H. Upmann Magnum 50 Gran Reserva Cosecha 2019.
Among the notable figures present was Manuel Anido, lawyer and romantic partner of Ana de Armas, who also serves as a consultant and stepson to Miguel Díaz-Canel. Organized by Habanos S.A., the event underscored the exclusive nature of Cuban cigars, touted as treasures reserved for those who can afford their steep prices. This spectacle took place in a nation where severe poverty is on the rise, leaving countless families facing darkness and hunger at night.
Record Sales Amid Economic Hardship
Despite Cuba's ongoing economic turmoil, Habanos S.A. recorded a landmark achievement in 2024, generating $827 million in revenue—a 16% increase from the previous year. China emerged as the company's most profitable market, trailed by Spain, Switzerland, the United Kingdom, and Germany. According to Jorge Pérez, Vice President of Habanos, the demand for Cuban cigars continues to grow, particularly among Asia's affluent classes. This trend persists even after hurricanes Rafael in 2024 and Ian in 2022 ravaged tobacco fields in Pinar del Río and Artemisa.
Habanos S.A. operates as a joint venture, with half owned by the Cuban regime and the other half by Asian investors. While the government reaps substantial profits from cigar exports, Cubans face a severe shortage of the product on the island.
Tobacco: Cuba's Leading Export
Recently, Miguel Díaz-Canel reiterated the vital role of tobacco as Cuba's top export commodity, highlighting its "adequate return" and the business's profitability. In his view, this sector boasts "the country's best economic framework." Nonetheless, the reality in Cuba starkly contrasts with the leader's assertions. While Cuban cigars fetch exorbitant prices internationally, accessing them at reasonable costs within the island remains virtually impossible.
Smoking in Cuba: A Costly Habit
The prices of tobacco and cigarettes in Cuba have soared to staggering heights. Packs of unfiltered Popular cigarettes, supposed to cost 30 pesos in the government-run stores, are sold for up to 600 pesos on the black market. Smokers favoring the H. Upmann brand must shell out between 1,200 and 1,500 pesos for a single pack. The shortage has spawned a lucrative black market where resellers and private enterprises dictate supply and set astronomical prices.
While authorities boast of "over-fulfillment" in cigar and tobacco production, ordinary Cubans are forced to quit smoking or pay outrageous prices for what was once a staple of everyday life on the island. The irony is unmistakable: While the regime hosts extravagant events to celebrate tobacco and garners millions through its export, Cubans can barely afford a cigar, and many have never even tasted a Habano.
Cuban Cigars and the Economic Disparity
Why did the Cuban regime host such a lavish event amidst a national crisis?
The Cuban regime organized the extravagant Habano Festival to project an image of luxury and exclusivity surrounding Cuban cigars, despite the country's severe economic hardships.
How are Cuban cigars performing on the international market?
Cuban cigars are performing exceptionally well in the international market, with Habanos S.A. reporting record sales in 2024, driven by high demand from affluent markets like China.
What challenges are Cuban smokers facing?
Cuban smokers face skyrocketing prices and severe shortages, forcing many to either quit smoking or pay exorbitant prices on the black market.
What is the significance of tobacco to the Cuban economy?
Tobacco is Cuba's leading export commodity, providing substantial revenue for the regime, yet contributing to the disparity between international success and local scarcity.