SMOKE: The past 10 years have been a decade of evolution for the Cuban tobacco industry. What do you foresee for the next generation of Habanos?

BASULTO: We will keep on working and battling to remain in our position as leader in the market of premium cigars.

SMOKE: Will we continue to see “limited edition” products?

BASULTO: Definitely, but even more consolidated every year.

SMOKE: Some retailers appear somewhat unhappy about “limited edition” cigars. They say that they stock and promote the products, and their customers purchase these special cigars to their great personal enjoyment. The problem lies in the fact that once they are gone, they cannot find their “new” favorite cigar. Do you see this as a problem or an opportunity?

BASULTO: We are celebrating the fifth anniversary of the Limited Edition releases this year, having reached the goal of giving an added value to the most demanding Habanos lovers - those who seeks a “special” cigar, as you mentioned. While we appreciate the loyalty, the concept of Limited Editions implies an exclusive product, not a massive one. As you should know, this is due to the special particularities of the aging process that our filler and wrapper leaves goes through before becoming these excellent Habanos. This makes it impossible to include them as regular products in the standard portfolio of Habanos, S.A. The concept of Limited Edition is a live concept, adding new vitolas (sizes) every year under prestigious global brands, all of which are eagerly awaited by customers. Therefore, they are an innovative yet dynamic factor [in the marketplace], and a special way for customers to get deeper into their knowledge of the Habano. Anyway, this is a great year to taste another release of the Limited Editions, which feature the most successful vitolas of the past five years, which are the Cohiba Pirámides, Montecristo Robusto, and Partagás Serie D No 3.

SMOKE: This year Habanos is celebrating the 40th anniversary of the critically acclaimed Cohiba brand. Do you expect Cohiba to continue to evolve and grow or to remain an exclusive product?

BASULTO: It will continue developing, not growing much. Bear in mind that leaves used in making Cohibas come from the best plantations, and are the elite crops from those farms, which is why Cohiba must remain an exclusive product.

SMOKE: By offering new sizes and shapes of Cohiba, are you worried that the uniqueness of this brand’s original identity will be negatively affected?

BASULTO: No. Offering new sizes and formats is aimed to satisfy the most demanding smokers, but not by damaging the quality, the identity, or the brand image.

SMOKE: Please explain to our readers the concept of “regional” releases.

BASULTO: As we were talking about, Habanos lovers like to seek out novelty and exclusivity. Sometimes we aim for specifc time periods and specific markets with new vitolas that are not part of the regular portfolio of a given cigar brand. These are offered as what we call Regional Editions. Thus, lovers of a certain brand have the chance to taste the characteristic blend of that brand in a size that’s never before been available to them. The exclusivity in this case is not related to a limited production but to a specific, defined market. So far, the concept has been received quite warmly by our distributors and customers.

SMOKE: How will the new worldwide attitude toward tobacco and the ever-increasing smoking bans throughout Europe and the world affect Habanos sales?

BASULTO: If we listen carefully to our experience in this business, we will realize that at the time these bans start to take effect there is a period of expectation, waiting to see what is going to happen. Eventually, little by little, the market evens out. And thus far, we are not having significant drops [in sales].

SMOKE: When and if the U.S. economic embargo is ever lifted, how will Habanos react to the fertile American marketplace?

BASULTO: We’ll try to satisfy the demand of the American market, but certainly by not putting aside or abandoning all the smokers [outside of the U.S.] who have been with us through all these years.

SMOKE: Do you have U.S. distributors and retailers ready to “ramp up” if the embargo ended tomorrow?

BASULTO: No. And I don’t know whether the U.S. is truly ready or not [to handle the distribution]. We are ready to offer the product they need. I suppose a negotiation process would have to precede all of this, were it to happen.

SMOKE: How would Habanos position itself in America, with respect to marketing against 40 years of years of Dominican, Honduran, Jamaican, Mexican, and Nicaraguan cigars that have been sold in the States ?

BASULTO: That answer is related to your last question. The strategy should be negotiated. We are talking about an elite product here, which, due to the blockade by the U.S. government, the American cigar smoker is not allowed to taste or buy. Those who are most enthusiastic to smoke the best tobacco in the world and have been able to acquire it, they will smoke Habanos for sure [when they can legally do so]. I daresay many of these people will leave cigars from other origins behind and move to [smoking only] the Cubans. Others who have not been able to buy Habanos may well continue to enjoy cigars from different origins - Dominican cigars, for example - because they continue to enjoy them.

SMOKE: Rightly or wrongly, many Americans compare the quality and flavor of Nicaraguan cigars to Cubans. Has Habanos compared the top-rated Nicaraguan cigars to their Cuban cigars?

BASULTO: Certainly, most American cigar smokers have tried very few real Cuban cigars. Otherwise, these opinions would be different. Generally speaking, Nicaraguan cigars have a good presence, but they have nothing to do with Cuban cigars. We acknowledge the experience the cigarmakers in Nicaragua have gained in trying to emulate our genuine product - mostly in [wrapper] colors and packaging - but we feel they can never emulate our products’ unique flavor and aroma.

SMOKE: Have you smoked any of the Nicaraguan cigars? If yes, what is your feeling toward the product?

BASULTO: I am not saying Nicaraguan cigars are bad. They are different - in my judgment, not as tasty nor as aromatic as Cubans. They have the [tobacco] varieties, and probably some [cigar making] experience there, but they are simply not working with the same weather conditions, soil, or climate that we have in Cuba.

SMOKE: Throughout Mexico and the Caribbean, many counterfeit Cuban cigars are sold to unsuspecting American tourists. Some estimates put the number near 50 percent of the cigars purchased there. How can one be sure he is purchasing genuine Habanos cigars ?

BASULTO: Firstly, they should make sure they are at an official point-of-sale dealer licensed by Habanos, S.A. Even better, buy at one of our Las Casas del Habano shops. Never buy them from people on the streets, or the unlicensed salesmen that we see worldwide offering Cuban cigars at restaurants, sometimes even packaged in fake boxes and sold by units. Counterfeiters make their living by trying to imitate the best of the best, so customers need to be wary about what they are purchasing. To be sure they’re getting the real thing, they should carefully check the product’s seals - the Cuban government warranty seal, and also the seal placed by the Exclusive Distributor. And if they buy in Cuba, they should make sure there is a holographic seal for the domestic market.

SMOKE: Please tell us a secret about something that we can expect to come in the future from Habanos S.A.

BASULTO: All I can say is to expect a company that is trying to be more and more competitive - with all that implies.

SMOKE: Which Habano is your personal favorite ?

BASULTO: The one I’m smoking today: the Cohiba Siglo VI.