New here-Cuban ?'s

[CptnBlues63]

All Cuban cigars are made by the same (government) company. (Crown Corporation in Canadian-speak.) Cohiba and then Trinidad get first pick of each year's tobacco crop. (Farmers all get paid the same price.) Only Cohiba gets a third fermentation (just the ligero, IIRC). Of course there is the blend. Does that add up to the price difference? Of course not.

According to Lew Rothman, a decent hand-rolled long-filler cigar costs about a dollar by the time it lands in Florida. The difference in cost from an Opus X to a Curly head is pennies on that dollar. The rest is marketing and profit and taxes. For example, a Padron 2000 is about $4 in a low/no tax state. Cigar retailers generally run on Keystone (100% gross) profit, so the wholesale cost is about $2. US federal tax is about $1, so Padron is getting about $1 for a 2000. Thus they are making very little on a 2000. For a $20 Padron Anny, Keystone grosses $10, fed tax is still around $1, so that's $9 to Padron. The cigar still costs around a dollar to make, so they're making about $8 a cigar instead of pennies. That Padron still makes 2000's (and doesn't charge more for them) tells you a lot about the way old man Padron does business. It also tells you a lot about how some other cigar companies do business.

Thanks for the info Craig!

I knew none of that about the Cuban cigars and little about the rest. It's good to know.

[ggiese]

Thanks for the info Craig!

I knew none of that about the Cuban cigars and little about the rest. It's good to know.

I'd take anything Lew Rothman says with a grain of salt. I think there's some form of truth somewhere in his statements... But if you know Lew Rothman - he's short of many things EXCEPT "opinions". Kinda like P.T. Barnum, in a way...

I also mostly agree with the observations Craig made about the Cuban cigar industry. It is state run, no doubt - and they (theoretically) put the "best" into the Cohiba brand (followed by Trinidad). But I don't believe it's otherwise as cut and dry as Craig lays it out.

It is worthwhile knowing what a certain Marcas is generally comprised of. For example - it's good to know that Vegas Robaina is generally made from tobacco's harvested in the Vuelta Abajo region of Cuba. If you know anything about Cuban cigars - you know it's a good thing when tobacco in a cigar comes from Vuelta Abajo - just as it's good to know that a "domestic" cigar may come from Nicaragua or a cigar is wrapped in "Cameroon" leaf.