Tuesday, February 19 2008
By Thomas Mulier
Feb. 20 (
Bloomberg) - Premium Cuban cigars would jump in price if the U.S. were to end an embargo on trade with the island nation and permit their sale in its cigar market, the world's largest, according to Swedish Match AB.
Demand for Cuban cigars might double overnight if the ban were lifted, a step Swedish Match managers view as "inevitable,"' Chief Financial Officer Lars Dahlgren said today. The Stockholm- based owner of the Macanudo brand has drawn up plans to prepare, he said in a telephone interview.
Speculation about an end to the ban arose yesterday as Fidel Castro resigned as Cuba's president after 49 years, though the U.S. State Department said no policy changes are imminent. American smokers buy two-thirds of the world's premium cigars, according to Swedish Match, the industry's second-largest member, which has contested ownership of the Cohiba brand with Cuba's government.
Story continues at Bloomberg.com...
