Cuban Cigar Industry Faces Major Crisis
As Cuba grapples with an ongoing fuel and power crisis, one of its most famous exports—cigars—is experiencing significant difficulties.
According to retailers, the cigar industry is encountering its most severe supply shortage ever. Ongoing power outages, fuel scarcity, and transportation issues have made it almost impossible to produce premium cigars and get them shipped out under the necessary conditions.
“I’ve been telling my customers, ‘It’s been months since you’ve had any,'” noted Manu Harit, a cigar specialist in London whose business relies heavily on Cuban cigars.
Although Cuban cigars cannot be legally imported into the United States, they are still available in many other parts of the world. There’s been a noticeable increase in demand from buyers across Europe, the Middle East, and Asia. Last year, Harit shared, only a small fraction of the orders were filled. “We placed an order for £45,000 (around $60,000) worth of stock, and only received £5,000 (about $6,650).” He added that over the last few months, very little inventory has been sent out.
Consumers are starting to stockpile cigars again. “I’ve smoked Cohiba all my life, and now it’s simply not available,” said an American who has regularly bought cigars while in Britain. “There’s really nothing else quite like it.”
The situation for many Cubans is dire; they’ve been living without reliable electricity. They’ve limited access to necessities like refrigeration, water pumps, and even vital medical equipment. Harit, in contact with several individuals on the island, shared that a taxi driver recently spent 14 hours queueing to buy gas, paying a staggering 350 pounds (around $465) for just 2.5 gallons—just to reach a cigar factory to pick up a few boxes.
Air cargo to and from Cuba has become exceedingly complex. Exporters are now seeking alternative shipping options, but many of the vessels they’ve found have no experience in transporting premium cigars and may not maintain the required conditions. This has led to reports that some inventory has had to be sold off due to these challenges.
The Cuban cigar industry is particularly vulnerable, as it is fully controlled by the communist government. If the country’s infrastructure falters further, the cigar industry could collapse as well. Habanos SA oversees the global distribution of Cuban cigars and is partially owned by foreign private entities. “There’s just no other option,” Harit commented, noting that all main brands—including Cohiba, Trinidad, and Montecristo—have been nationalized.
With the ongoing crisis, cigar prices have surged dramatically. What once sold for about 20 pounds (roughly $26) a decade ago now commands around 160 pounds (about $212). Harit expressed uncertainty about when supplies might return to normal, while counterfeit cigars are beginning to flood the market. Yet, he emphasized, “They will never replace the real thing.”
