Issue link: http://read.dmtmag.com/i/550304
56 tobaccoasia Are cigar smokers in these countries mainly local or expatriate residents? The mix of local and expatriates consumers has changed significantly in recent years. The main reason is the developing taste and higher income of local consumers, as well as the reduction of high-level expatriate packages in Asia-Pacific re- gion. Also more and more high executive man- agers are local, but educated abroad, where they acquired a taste for nice wines and cigars, among other things. So, actually, cigar smokers in the re- gion are now in the majority locals. Are cigar bars popular and increasing? Yes, despite the fact that the weather helps out- door smoking, in most of the countries of the South Asian region, we see a growing number of cigar divans and cigar bars. And they are becom- ing more and more popular. As these are cigar smoking destinations, it is good news for aficiona- dos, who can now find dedicated spaces. What types of products/brands are particularly popular and are they mainly supplied by local manufacturers or foreign? Habanos brands are the most popular in the pre- mium brands. You will find a large portfolio of Cohiba, Montecristo, Romeo y Julieta and Parta- gas in handmade as well as machine made. The Pacific Cigar Company recently launched the Cohiba White Mini and Club. This is a new ver- sion of the traditional yellow pack Cohiba Mini and Club, but a milder blend aimed at younger adult smokers and women. In the last few years, VegaFina has become very popular, as has Casa de Garcia. In the premium market, large ring gage and short length are cur- rently in demand, as they can be enjoyed in a time of 20 to 30 minutes. In terms of taste, at the pre- Below: Red Chamber Cigar Divan lounge and VIP room mium end, consumers favor medium strength, and for machine-made, the most popular size is Club. Which local companies are the main players in these sectors and how are they performing? The Asia Pacific cigar market is partly shared by two main distributing companies: The Pacific Ci- gar Company [PCC], the exclusive distributor of Habanos, also distributes VegaFina and Flor De Copan, which are the global brands of Imperial Tobacco Premium Cigar Division. PCC have 28 tobacco specialist shops in the region, excluding Indonesia and PR China. Bluebell Company is the exclusive distributor of Davidoff Group, which retails in 23 tobacco specialist shops regionally, excluding Indonesia, Australia and PR China. These two companies have a large presence in the regional retail markets with the largest number of shops, and both are performing well. There are also other players like Tag Ventures in Malaysia, which owns 14 tobacco specialist shops in Malaysia and is expanding into Cambo- dia, where it will open its first shop in 2014. Its Whisky Tango Foxtrot outlet in KL caters to cigar and whisky aficionados. How are export markets performing for local manufacturers and growers? First you do not have a lot of local cigars manu- facturers. In China, the manufacturing of Chinese- style cigars will play a key role in the future devel- opment of the country's tobacco industry. Outside of China the main manufactures are in the Philippines and Indonesia. I believe their busi- ness is growing. I do not have much information on those local manufacturers and growers, but ac- cording to cigar industry insight it seems that In- donesian and Philippines growers are enjoying a good time. Raw material pricing for cigars in all categories is growing in double digits each year. What are the opportunities for further growth in these markets? Opportunity for growth, in my opinion, comes in two aspects: China and regional tobacco specialist retail development. China offers a challenging context, but is among the brightest prospects for the cigar market thanks to its consistent economic growth. China is the focus of the industry in the region and Impe- rial Tobacco Premium Cigar Division is strategi- cally placed. The cigar cooperation project I initiated in 2008 is on a steady path and is establishing ITG as a favored partner for the State Tobacco Monopoly Administration, both for our cigar and cigarette businesses.