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HABANOS SALES UP 7% IN 2007

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Los Angeles, February 28 – Habanos vice president Manuel Garcia told the 1,500-plus attendees at this year’s Festival del Habano in Havana that sales of Cuban cigars increased by seven percent to $402 million U.S. in 2007.

Garcia didn’t say how it happened, nor did he – as usual – provide any figures on the number of cigars made in Cuba last year. He did say that Havanas hold 85 percent of the world-wide market outside of the United States and that sales were strong in Spain, France, Germany, Switzerland and in Cuba itself, while the anti-tobacco legislation in Canada helped reduce sales there by seven percent. European sales accounted for 60 percent of the total worldwide sales receipts.

That sales momentum has led to this week’s introduction of a raft of new products by Habanos, all of which are destined to sell at premium prices which have been the key to the increased sales totals over the past several years. Among the developments and announcements:

Garcia explained Monday’s comments about Cohiba, noting that the brand accounted for 25 percent of the total sales value of Habanos (about $100 million!) with Montecristo second at 23 percent (about $92 million) and Romeo y Julieta third at 18 percent (about $72 million). Those three brands together comprise two-thirds of the entire sales of Habanos worldwide.

Given the increase in prices, smokers will welcome the presentation of more and more sizes in boxes of 10 or less in addition to the traditional boxes of 25 and 50. Among those cigars slated for this wallet-friendly treatment are the Cohiba Siglo I (4 inches by 40 ring) in boxes of five and the popular Partagas Serie D No. 4 (4 7/8 x 50). The two former Edicion Limitadas added to the regular production lines – the Hoyo de Monterrey Epicure Especial (5 1/2 x 50) and H. Upmann Magnum 50 (6 5/8 x 50) – will be offered in boxes of 10, 25 and 50.

Many additional cigars will be offered in tubes, including the Bolivar Royal Coronas (4 7/8 x 50), the Partagas Serie P No. 2 (6 1/8 x 52 torpedo) and the legendary Punch Punch (5 5/8 x 46).

The 2008 edition of the “Coleccion Habanos” – a series of book-style boxes of cigars – will feature Cohiba in a new shape, the Sublimes Extra, measuring 7 1/4 inches by 54 ring.

The “ancient humidor” series, which offers brands in specially-made humidors that replicate pre-embargo styles, will add a Romeo y Julieta model this year. Only 250 will be made.

A blizzard of Edicion Regionales will be added for 2008:

> Adriatic Region: La Gloria Cubana “Marshall” (4 7/8 x 50);

> Asia/Pacific Region: Bolivar “Short Bolivar” (4 3/8 x 50) and Por Larranaga “Belicosos Extra” (5 1/2 x 52);

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Did you know?

“A Macanudo Baron de Rothschild cost you $2.60 in 1975, $3.70 in 1995 and $5.20 in 2005, a 100% increase in 30 years!