Javier Terrés Ercilla. Vice president of the Development Division at Habanos S.A.

Q: What prospects does Habanos S.A. have in store for this year?

First of all, we must bear in mind that we’re dealing with a very complicated kind of market, seriously hurt by a profound economic crisis that definitely has to do with Europe, too. This situation brings about huge repercussions for us since 70 percent of our sales are conducted in Europe. I think in this business we must give our customers what they demand: the best product money can buy, a luxurious item. That’s where we’re setting aim at this time around. This drives us to map out special designs good enough to meet the most excusive demands.

Q: Can you tell me about cigars in the duty free category?

Cigar quotas in the duty free category are pretty high. In all stores around the world you find the best and finest products of their kind, whether it’s perfumes, cosmetics, fabrics and, why not, cigars. Habanos S.A. takes a highly significant slice off the duty free pie. For our corporation, sales through this particular channel are extremely important because passengers buying items in a duty-free shop are usually jet-traveling, deep-pocket guys. Those are by and large businesspeople running on too tight a schedule to buy something in their destinations. Yet they do have time to buy items at the airport. That’s why they qualify as one of our top goals lock, stock and barrel.

Q: As to the duty free category, how does competition fare as far as Habanos is concerned?

I’ve got a way about that and were very rigorous in that respect. We’re the leaders in the business with a 70 percent share of the market. We don’t like to talk about competition. We think (competition) makes us look smart, good and fast, but we don’t like mentioning who our competitors are. They’re out there, we all know who they are, but our position of leaders in this business makes us feel respect toward the market and makes us bend over backward to be simply better with each passing day. That’s it. We don’t like talking about competition.

Q: What was the trend of the Fifth International Cigar Festival that came to a close quite recently, especially for the Development Division of Habanos S.A.?

This year we’re involved in a very important development effort in several parts of the world. And you have to forgive me, but it’s strictly confidential. You must understand that we cannot mention a word about this until all distribution agreements are signed, sealed and delivered. All I can say is that we’ve got a major development area in Eastern Europe, and you can take that to the bank. We have a major development area in the western hemisphere, and on the other hand, we’re also doing our homework along the Asian-Pacific beltway as far as sales are concerned.

We started this year more aggressively toward Eastern and Central Europe, because those are markets that will soon join the European Union and have consumers craving the perfect smoke. That’s our premiere challenge for the year. We must also buttress our long-term working strategies with both our global and local trademarks, with that low-income segment that the Guantanamera brand has rushed to cover. This whole process must be based on a dealership network we’re bound to make stronger with the sweat of our brow.

Q: What’s your assessment of the Fifth Cigar Festival that took place in Havana from Feb. 24 to 28 this year?

I’ve been stunned, really, because this year we had more than 900 people from over 55 countries, and that’s really a sign of our times. We don’t even know if there’ll be a war within a couple of days, in a week or a month from now, or if there won’t be a war at all. But there’s plenty of uncertainty and that bars people from traveling and spending money. That’s why I tell you we were really surprised about the festival’s success in which all functions wiere jam-packed. You bet this festival has really made a splash all around the globe, and only a product like Cuban cigar can just do that.

Q: What major planners were behind the organization of the Fifth Cigar Festival?

From here I must say thanks to all those who pitched a hand in the organization of the festival. Especially to our operative marketing chief Ana Lopez, who was in charge of the event’s outlay and preparations along the International Conference Center. We have to congratulate her because everything worked just fine. Of course, invitees and attendants also did their stuff, but we ought to stress the magnificent organization.

Q: Within the framework of the Cigar Festival, we witnessed the selection of the best blend between cigar and whiskey, something that was totally unprecedented. What can you say about this great event?

That was really important. We’re convinced that cigars are closely linked to the realm of gourmet, wine and coffee. In the case of hard drinks, whiskey is somewhat similar to us. The land that produces whiskey –Scotland- has different regions and brands. In the case of cigars, it happens exactly the same. We have Cuba, the land of the best tobacco, with different regions such as Vuelta abajo, Vuelta arriba, Remedios, Oriente. Things make a lot of sense when they fit in perfectly well. And we can’t fail to mention a bunch of Scottish people who were there and put on quite a funny show. Now we have a great combination between whiskey and cigar, a heck of a show that’s good also for the people, because they feel lured and enchanted by it.