The most expensive humidors in the world are auctioned at the annual Habanos Festival. One skillfully crafted Cohiba cabinet fetched 4.5 million Euros this year.
For the Cuban cigar industry, the «Festival del Habano» is just as important as the Baselworld once was for the Swiss watch industry. This year it took place at the end of February for the 24th time.
Every year, around 2,000 dealers and cigar enthusiasts from around the world gather in the Cuban capital.
Las Vegas-Style Show
The highlight and finale of the one-week festival is the grand closing gala featuring a cigar auction. For this, the «Palacio de las Convenciones,» the country’s biggest convention center, is given a sprucing up as if it were London or Las Vegas.
Visitors are welcomed with a red carpet and elegantly arranged tables. A massive stage for cultural and musical performances is flanked by sound speakers perfectly calibrated to blast out Latin American music.
Increasing Pressure on Prices
The «Festival del Habano» is probably the occasion where the otherwise politically and economically isolated island comes closest to the rest of the world.
The same applies financially. Not only are admission tickets priced at developed country levels, the Cuban cigar industry also demonstrates a new upward flexibility when it comes to the prices it sets each year.
Frontrunner Cohiba
This is especially true of the beautifully crafted humidors specifically made for the auction at the gala evening. Each of the sometimes very voluminous and elaborately decorated cabinet pieces is dedicated to a specific cigar brand. Inside can be found the commercially available models of the brand in question.
The front runner at the auction this year was the Cohiba humidor, which houses 20 units each of the 25 famous formats of this brand. These included 20 cigars in each of the three coveted Behike sizes.
China’s Craving for Luxury Goods
After the auctioneer’s persistent and patient persuasion, the humidor raised 4.5 million Euros or an average price of 9,000 Euros per cigar. The sums raised from the eight auctions added up to 17.8 million Euros. The proceeds officially go to the Cuban healthcare system. For political reasons, prices are quoted in Euros, not Dollars.
At least four of the eight humidors were auctioned off to Chinese guests – another indication that Chinese demand for the «luxury item Havana cigar» has been driving up prices, a trend observed for many years.
In 2020, a Chinese syndicate based in Hong Kong snapped up Spanish firm Altadis’ 50% stake in the Cuban export monopoly Habanos. The Cuban state owns the other half.
