The Cuban Cigar Industry

The Cuban Cigar Industry

Length: 999 words (2.9 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Even for the uneducated cigar smoker, Cuban cigars are known as the upper echelon of style and class. They have a distinct taste and feel and are considered by some as containing the world's best tobacco. Cuba's land is possibly the ideal place to grow the most tempting cigar tobacco in the world. Though other countries are making very similar cigars, Cuba's mystique still has a strong hold over cigar aficionados worldwide. Given the current popularity of cigar smoking in the United States, and the fact that Americans like the ‘finer things' in life, it would only make sense that the Cuban cigar industry would be a good entity to devote your investing money in. However, an important aspect that must be considered is the fact that the importation of the Cuban cigar to the United States is illegal. Due to the trade embargo imposed on Cuba over forty years ago, the fine specimens that are Cuban cigars are still barred from reaching our borders even today.
John Hernandez is prospecting for good investment opportunities within the next month to make use of a one million dollar inheritance. He is an avid cigar smoker, and is excited about the possibility of the trade embargo with Cuba being lifted. With this just being speculation, the real issue is whether he should go forward in investing in the Cuban cigar market.
The most prominent problem facing external investment opportunities today for the Cuban cigar industry would be the forty plus years of a trade embargo with the United States. With the United States being the largest cigar market in the world, Cuba (and the individual investor) is missing out on a potential revenue goldmine. Obviously the potential slackening of the trade barrier would be an investor's dream within this industry, but the reality of the situation is still very unpredictable. With presidential elections looming in the United States, there is no way of knowing whether a candidate will stick with the current political policies concerning Cuba, or whether they will eradicate the embargo once they are elected to office (flip-flopping on issues is almost as assured of as death and taxes).
John has an interesting investing dilemma. There are many solutions to what he could do with his inheritance; however there are three obvious solutions: he could invest all of his money into the Cuban cigar market, he could partially invest his money in the market, or he could invest nothing in the market, and research other means of enhancing the returns on his money.

How to Cite this Page

MLA Citation:
"The Cuban Cigar Industry." 123HelpMe.com. 20 Nov 2019
    <https://www.123helpme.com/view.asp?id=163488>.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Cuban Cigars : Rolling Process and Crop Gathering Essay

- Cuban Cigars: The Rolling Process and Gathering the Crop In 1492, Christopher Columbus discovered the island now known as Cuba. Along with the discovery of Cuba, Columbus also discovered tobacco. Since that time, Cuba has developed the reputation as having the finest tobacco and finest cigars in the world. The following article will discuss how the crop is raised and harvested. Furthermore, the art of cigar rolling will be discussed in detail. What makes Cuban tobacco the world's finest tobacco....   [tags: Cuban Cigar]

Free Essays
710 words (2 pages)

Cuban Cigars Brands and Companies Essay

- Cuban Cigars: Cigar Brands and Companies and Their Role in the Development of Exile Culture Political passions in the Cuban community run fervent and high. Cuban exiles were people that were forced to flee their homeland as a result of Fidel Castro seizing control of the government in 1959. Cubans greatly differ from other Hispanic groups in terms of why they migrated to the United States. Mexicans and Puerto Ricans came to the United States is search of greater economic opportunities. Cubans on the other hand were forced to leave Cuba due to their political beliefs and viewpoints....   [tags: Cuban Cigar Cuba]

Free Essays
835 words (2.4 pages)

The Revolutionary Movement Of The Cuban Revolution Essay

- Argentine born, Marxist revolutionary Ernesto "Che" Guevara played an important part for the Cuban revolution as guerrilla, as minister of industry, and as a figure that influenced the Cuba 's revolution with his philosophy of a "new man," a new society that could be motivated by the morals rather than by personal gain. He was a first doctor, then a soldier, and a teacher in-between in the Cuba army. Here is where the revolution begin. Twenty percent of all Cubans were permanently unemployed. One point five percent of the landowners controlled forty six percent of the land....   [tags: Fidel Castro, Cuba, Cuban Revolution]

Research Papers
1569 words (4.5 pages)

Essay on Effects of the Cigar Strike of 1937

- Not only did the strike affect money, family relationships and Nowak's ankle it erupted a domino effect, affecting other businesses as well.“They won the complete support of the whole neighborhood,’ according to Stanley Nowak. “The cigar womens strike also precipitated a wave of sit-downs by other women in laundries, restaurants, hotels, and the five-and-dime and specialty food stores in the city.” Other women in smaller businesses around the city began sitting down in strike as well. Although their strikes did not last as long as the Cigar strike it goes to show how the Cigar making women had an impact on other working women....   [tags: Detroit history, labor rights]

Research Papers
1057 words (3 pages)

The Cuban Embargo: An Economic Sanction that Never Achieved its Goals. Close, But No Cigar.

- The Cuban Embargo: An Economic Sanction that Never Achieved its Goals. Close, But No Cigar. History of Events Before beginning my paper, I will give a very brief summary of the actions which caused the original embargo against Cuba in 1960 and the actions the US has taken since then. Reviewing this brief timeline will help to examine and critique the reasoning behind the embargo. In the early 20th century, Cuba was a nation in constant political turmoil ruled by militant dictators. Prior to the elections of 1952, Fulgencio Batista took power of Cuba in a bloodless coup....   [tags: Essays Papers]

Research Papers
4321 words (12.3 pages)

The Cuban Revolution Essay

- The time of the Cuban Revolution was a great deal of turmoil, not just in Cuba but in almost every corner of the world. It was 1945, shortly after the end of World War Two, and the Cold War was taking off between the United States and the Soviet Union. Cuba, in the middle of its own war, was caught up in the international politics of the Cold War. The interaction between international and domestic politics played a major role in the outcome of the revolution. The result of the revolution left Fidel Castro in charge of Cuba....   [tags: Cuban Politics]

Research Papers
781 words (2.2 pages)

The Cuban Revolution Essay

- "They talk about the failure of socialism but where is the success of capitalism in Africa, Asia and Latin America?" -- Fidel Castro Introduction During the 1950’s, Cuba was on the brink of revolution. The nation, which had suffered numerous corrupt and oppressive governmental regimes, fell victim to yet another when Fulgencio Batista seized power under a military coup in March of 1952. A cry for a just Cuba, that was economically, politically, and socially free continued to echo throughout the island....   [tags: Cuban History Cuba War Essays]

Research Papers
2301 words (6.6 pages)

Cuban-Russian Relations Essay

- Cuba’s unpredictable shift toward socialism and its growing dependence on the Soviet Union divided both the leadership and the country at large. With a relationship dating back to before Fidel Castro’s installment into power, Russia and Cuba have both played major roles in the development and regression of each other’s economies and societies. The first official diplomatic relationship between the Soviet Union and Cuba began developing during World War II, in 1943. With the establishment of the first Soviet embassy by Maxim Litvinov, stationed in Havana, Cuba; this was after Cuba gained its independence from the United States in 1902 and the Russian Revolution in 1917....   [tags: cuban revolution, cold war]

Research Papers
1721 words (4.9 pages)

Cuban Film Industry Essay examples

- Cuban Film Industry Bennito Mussolini constructed Cinecitta in 1938, the most significant film studio in Europe. Stalin had hi own Private projection. Juan Peron and Mao Zedong shared the fascination, they both married actresses. Francisco Franco was said to have a fantasy of being a movie writer. The leader of the Cuban Revolution follows their footsteps. In 1979 he created, ?The International Film Festival of Havana. and also inaugurates a school for the Cuban youth to follow on their prestigious film makers rule of the screen....   [tags: Cuba Movies Films Cinema Essays]

Research Papers
1302 words (3.7 pages)

Essay on New Cuban Cuisine

- Includes Recipes New Cuban Cuisine The Cuban style of cooking is simple in concept but complex in flavor. Much Cuban food owes its heritage and tradition from Africa and neighboring, Caribbean cultures. However, there are two distinctive styles of cooking: "the classic" whose techniques and ingredients have been in use for a long time across the island, and "the new," labeled nuevo Cubano, which adds a variety of herbs and spices from other cuisine and emphasizes presentation. For example, the province of Oriente, in eastern Cuba, is well known for its contribution of spicier and more robust dishes to the cuisine of the island due to the influx of Haitian and Jamaican immigrants to the isl...   [tags: Cuban Food]

Free Essays
967 words (2.8 pages)


The best case scenario would be that John invests his entire inheritance into the Cuban cigar industry and the embargo with the United States would be lifted. The reputation of the Cuban cigar would lift it to stardom with its new found audience in the United States, and John, along with other early investors, would be far richer than their wildest dreams. However, the reality is that even if the embargo with the United States was eliminated, it could be argued that some of the charisma and charm of the Cuban cigar comes from the inability to get them in the United States. If the cigars were as easily obtainable, would the popularity be very long lived? Americans are a fickle bunch, and even now, the popularity of cigar smoking is decreasing. It is possible that the legalization of the Cuban cigar within the United States could turn this trend around, but it just as possible that it would not be long lived.
Another alternative for John is to invest only a portion of the inheritance. Of course this would not present the yields that a full investment would, given that the market opens up and the embargo is lifted, but it would safeguard him from losing all of his money in case the embargo continues. Any investment is a gamble, and particularly so with an agricultural investment. Droughts, molds, infestations and floods are just a few things that we have no control over that can affect our investments. At any rate, to invest in a Cuban based entity at this point, there is a great deal of uncertainty.
The final obvious choice for John would be to walk away from the investment opportunity all together. It is very possible that the embargo with the United States will not be lifted, and it is hard to tell without a formal financial analysis whether it is worth investing in the market as it stands now. We do know that the market is slowing down, and that it would be almost impossible to know if Cuba can continue to make a product that could not be substituted, when there are so many cigar companies close to replicating the product as it stands.
The best solution and the most cost effective way to solve this tricky situation would be to work with all of the scenarios that have been presented in an innovative way. An issue that must be addressed is the possibility that firms working with the government of Cuba now could be ostracized for their involvement with Castro if the government is ever overthrown. In this scenario, the investment would be lost, even if the embargo was lifted. In light of this, investment opportunities have to be thought through in a less direct sense. Though United States citizens currently cannot take advantage of any direct investment opportunities with any Cuban companies, there are always opportunities to invest with companies that might do well under either circumstance- the continued embargo environment or the resuming of trade after the embargo is lifted. If John really wanted to capitalize on this investment venture, it might be a safer bet to invest in a currently traded cigar company. There are a lot of changes being made within that industry, so a little research could probably result in a situation that satisfies both the current situation between Cuba and the United States, and Cuba and the rest of the world.
Return to 123HelpMe.com