A View into the Ever-Evolving Cigar Industry of this Legendary Island

by Alyson R. Boxman

As the tour bus weaves down the narrow streets of Old Havana, the melodious voice of Rosa, our guide, fills the bus. After the customary tour guide speech, in which she details the population and size of the city, she asks if there are any questions. Most of the travelers on my bus are first-time visitors to Cuba, and want to know what life is really like here for the locals. Rosa could not have been more accommodating, or more candid. “All the young women want to meet a tourist and get married; all the young men dream of going to Miami,” she said matter-of-factly.

After some additional questions, Rosa reveals, “Cuba has a very old population, and a high divorce rate. It is not uncommon to be married five or six times.” She adds that minimum wage is approximately $10 a week, but the locals get paid in Cuban Pesos, and “it just cannot be compared to dollars,” with many of the citizens’ necessities subsidized by the government. She goes on to explain that many of the locals aspire to get into the tourism industry for the tips, which is, in fact, what attracted her.

I am reminded of the plight of a young boy when I see billboards that shout “Liberate Elian” peppering the landscape as our bus heads toward Pinar Del Rio for the three-hour journey from Havana. The province of Pinar Del Rio arguably produces the best tobacco in the world. As I survey the fields and drying barns of one family’s operation, I can sense the dedication and years of expertise that go into cultivating their quality product. Walking through the drying barn, I think to myself, ‘The process appears to be basically the same one I’ve witnessed in other producing countries - the Dominican Republic, Honduras, Nicaragua - and the people seem to be just as dedicated there, so why is Cuban tobacco so exceptional?’ According to a Cuban industry official, there are four factors that constitute a “puros” - climate, geographical location, skill of the manufacturer, and the soil ... that magical soil. To the naive eye, it is impossible to see what is so distinctive about a handful of “dirt,” but there are embedded qualities that are only found on this legendary island.

Back in Old Havana, inside the Romeo y Julieta factory - which produces brands including Sancho Panza and Romeo y Julieta - I am surprised to find out that the cigars produced here are only aged (or “sleep,” as one factory worker tells me) for a week. The factory is open 24 hours a day, yet in the rolling room there are many empty seats. This sight seems to validate circulating rumors that there was a shortage of tobacco harvested in 1999, and that factories did not have enough tobacco to work with. According to Cuban officials, however, the 2000 crop is projected to be one of the largest ever, with Habanos S.A. expected to produce some 160 million cigars this year.

While in Havana, I met with Oscar Basulto, recently appointed president of Habanos S.A., to discuss the direction of the company, which sold 50% of its shares to Altadis, a newly-formed partnership of Tabacalera of Spain and Seita of France. Basulto, eager to talk about his coveted product, shed some light on that magic soil amidst the sweet smell of my puro.

SMOKE: How long have you been involved with tobacco?
BASULTO: I’ve worked in the Ministry of Agriculture since 1962. Until the early 1980s, I was mainly involved in finance and accounting. Then, in 1989, I started working directly with the tobacco sector. In October 1999, I was appointed president of Habanos S.A.

SMOKE: Exactly what is Altadis’ involvement in Cuba?
BASULTO: That question is important. They participate in the commercialization of the product, but they do not participate in the production - agricultural or industrial - of the product. Together with Habanos, they are responsible for marketing Cuban cigars all over the world. They are based in Europe, and that is our main market. I think that together, both of us can achieve better results. Their weaknesses are our strengths. Our weaknesses are their strengths. What we provide together is more strength for the entire cigar industry.

SMOKE: Within the Cuban cigar industry - from growing, to curing, through processing and manufacturing - are there any weaknesses you’re trying to correct?
BASULTO: Yes. In our process, we are striving to have higher objectives to obtain better results. And we are also trying to be more efficient in each link of production. For instance, in the agricultural area, we are beginning to implement the use of floating seedling systems. You get a better yield when you have the plants uprooted out of the floating system. That’s a new technology. Also, by utilizing that system, you don’t need to use as many chemicals. We have also implemented the drop irrigation system, which saves water, and is something we are trying to introduce fully. We are also implementing new technologies in the sorting and the manufacturing processes as well.

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