Habanos S.A.

Stock performance

History

Habanos S.A. was established in 1994 to take over the worldwide marketing and distribution of Cuban premium cigars. A 50% stake was later held by the Spanish-French tobacco group Altadis, which was itself acquired by Britain's Imperial Brands; in 2020 Imperial sold that half of the business to Asian investors, while the Cuban state retained the other half.

Business model

Habanos holds the exclusive right to export and market Cuba's hand-rolled premium cigars under brands such as Cohiba, Montecristo, Romeo y Julieta, Partagás, and H. Upmann, selling through a global network of distributors and franchised 'La Casa del Habano' shops. The tobacco itself is grown mainly in the Vuelta Abajo region of Pinar del Río and rolled in state factories.

Market position

Habanos is the world leader in premium hand-rolled cigars by value, with China, Spain, and other European markets among its largest customers. It is shut out of the US market by the embargo, where Dominican and Nicaraguan cigars dominate.

Country impact

Cigars are one of Cuba's most important sources of export revenue and one of its few globally recognized consumer brands, supporting tobacco farming communities in western Cuba. Their strong pricing power has made Habanos one of the more dependable earners in an economy with few competitive exports.