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Problems at Habanos

By David, on 04/05/2011 12:14
An interesting article recently appeared in the Economist (Smoked Out, 28th April) talking about the numerous problems that currently face Habanos S.A., internally and externally. Although we all suspected that corruption was rife and understood that the production of fakes and back-door-stock in Cuba and abroad was a real issue, it the scale of the problem that is worrying, to say the least. Habanos's Vice-President is now in jail in Cuba on massive corruption charges. The pushing of fakes/back-door-stock is in itself a problem for any smoker or cigar merchant, but the possible reasons put forward in the article behind this production and distribution of fakes/back-door-stock may hide larger, darker reasons. Suggestions of underhand selling of genuine Habanos S.A. stock by Habanos staff 'at a fraction of their normal price to black market distributors in the Caribbean in return for bribes' (up to 45m cigars), has resulted in a market confusion as to the true value of a Cuban cigar. One cannot and must not trust the prices of a shop/site that is pushing parallel distribution products (if you do, you are contributing to the overall problem). The article rightly points out that many online cigar retailers have contributed to this confusion by selling Cubans at 'improbably low prices', a point we have been trying to make on TopCubans.com for a number of years. One can only wonder (or now make an educated guess) where these types of shops/sites get their supply. All this brings us back to the basics. Cuban cigars remain a luxury product and luxury products cost, like it or not. If you want to be sure that your hard earned cash does not go up in imitation smoke, stay away from 'hard discount' Cuban cigars shops/sites. If the deal seems too good to be true, chances are that it will be too good to be true! Please do not misunderstand me, I'm not saying everyone should only buy from TopCubans.com (there are many excellent web-based shops who work hard to promote the product and inform their clients), I have nothing against fair competition (it makes us all work harder to give you better service and choice of product), but take the time to inform yourself properly before committing. Too cheap - stay away. Price inconsistencies across products - stay away. Irregular supply of standard stock or very few products available (Habanos S.A. carry +/-350 cigar products) - stay away. Unable to contact the retailer or no communication - stay away. Its a complicated game, but with a little common sense and 'head over heart' thinking ($50 savings at purchase becomes a significant loss if you are not smoking the genuine article) you can enjoy Cuban cigars in all confidence. I do encourage you to read the full article and take from it what you will. Enjoy, Richard
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