In a digital world, being constantly connected has left little time for us to consciously unwind, devaluing quality relaxation and engagement with others. Yet one archaic pursuit manages to restore order: the art of cigar smoking and the emergence of collecting.
It is these moments of relaxation that have given rise to the romance of cigar collecting. Over the last 20 years, cigars have emerged beyond the humble tobacco product, the last 10 years has seen an amplification in both product development and marketing from Habanos S.A. (the Cuban state tobacco division) to meet the needs of the modern consumer. Moreover, investment across London hotels and members clubs has resulted in the creation of smoking terraces of increased comfort and humidors adorned with coveted Cuban cigars.
True aficionados are rare. The cognoscenti understand, record and recall cigars of note, benchmarking and analysing individual cigars against previous years, imparting their passion to others. It is the select few who have profited as a by-product in the investment returns found within the Cuban cigar world, through collecting.
Investing in Cuban cigars falls under the alternative investment category, yet is by no means a new concept. Most cigar enthusiasts have evolved through the world, by passionately learning the culture, art and sport that is cigar smoking. Aficionados took to purchasing extra boxes to ‘keep’ or ‘lay down’ in the attempt to smoke at a later stage after a period of maturation known as ageing. Now consumers are purchasing in much larger quantities from current production to specialist production, knowing that each route has its own space within the investment sphere.
Aficionados know of the benefit a couple of years can have on the birth of a cigar. The harsh notes, including the common ammoniac taste which indicates ‘youth’ is highly prevalent, and that through gentle maturation, this can soothe into a mellow, complex and deeper profile. Here through ageing, the construction of the different harvests begins to harmonise. Serious collectors who helm boxes in excess of 40 years know that the quality of the tobacco used plays an important role in maturation.
Access to Cuban cigars varies immensely. Habanos S.A. range extends from current production to Regional Edition cigars, Limited Edition, Reserva, Gran Reserva, and specialist commemorative releases to mark events. Since 2000, the Limited Edition (Edición Limitada) Series was launched creating a new size that was not in the previous production, complimented with aged tobacco leaves. With this, a slow uptake of collectors emerged. Regional Editions followed next, producing exclusively for regional markets, available for a one- or two-year period with a limited production run of circa 25,000.
Further innovation resulted in the creation of The Reserva range. Each box contains 20 cigars, making a total production of 100,000 cigars available globally, while Gran Reserva boxes contain just 15 cigars, with a total production of 75,000 cigars. Here tobacco leaves are aged for up to five years prior to rolling and only produced when sufficient tobacco is available. Further productions include the Colección Habanos even rarer in quantity as only 2,000 boxes which are designed to look like ‘books’ are made each year containing 20 cigars, so a total of 40,000 cigars.
There are many more niche variants created beyond these categories, that fall under commemorative releases, the earliest of this was the Davidoff Gran Corona, which was produced for Zino Davidoff's 80th Birthday in 1986. The more niche, the more commanding the initial price point.
Let us attribute some value to cigars entering the market and the effect of ageing on price. A current production Cohiba Piramides (box of 10) purchased in 2013 at £284 currently sells for £509. A Bolivar Super Corona E.L 2014 (25) initially listed at £340 is now currently asking £630. A Diplomaticos Bushido R.E Asia Pacifico 2014 (25) was £530 and is now £1,700. A Bolivar Belicosos Finos (25) from 1983, circa £200 then, sold £1,950 this year. In 2016 Cohiba released a humidor to celebrate its 50th Anniversary. 50 humidors were produced, each containing 50 cigars. The first sold at auction in Cuba for €320,000 and the demand for the remaining 49 has risen immensely since. The last that we know of sold in the region of €500,000 in 2018.
While this is a handful of examples, the cigar consumers have awakened to this lucrative asset class that is largely private and helmed by a few serious smokers. The physical appearance of these cigars is often rare, even more so if the market and industry have a positive sentiment towards certain releases. Also, a sizeable chunk being smoked as each year goes by creates an added decline in the volume available on the market. The real secret, however, is to not set light to your new-found investment.
Landis Bagnall, Founder of VTOLA
Landis@vtola.co.uk
