Jump to full article: Electronic Telegraph (uk), 2007-07-19
Author: Tom Stevenson
Intro: Imperial Tobacco chief executive Gareth Davis is already planning a charm offensive in Cuba to show that Altadis's 50pc stake in Habanos, the state-owned manufacturer of some of the world's most famous cigars, is in safe hands.
He brushed aside fears that a change of ownership clause in the joint venture would be invoked, predicting a bright future for Imps in the spiritual home of smoking.
"Hopefully the change of control clause will not be exercised. It's an attractive business and it will benefit from Imperial's wide sales and distribution network. We're very hopeful Habanos will go from strength to strength under our stewardship," Mr Davis said.
Although the maker of Montecristo and Romeo y Julieta cigars was not Imperial's main target, the part-ownership of a clutch of famous brands, such as Cohiba, that the Altadis takeover brings is a prestigious bonus for the life-long smoker and a potential money-spinner if the huge American market was to open up after the death of Fidel Castro. The ultimate luxury product, cigars attract much wider margins than cigarettes.
"These are iconic cigar brands," Mr Davis said yesterday. "Emerging, aspirational markets are growing at a cracking pace and these sorts of products are highly sought after. We can do really well with them."
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