There are 70 cigar factories in the country that produce close to 5,000 brands, and the sales they make to the U.S. surpassing the sales made in that country by companies from the Dominican Republic and Honduras.
Figures from the Cigar Association of America indicate that in 2018 Nicaragua exported 140 million cigars to the North American country, a figure surpassing the 95 million sold by companies in the Dominican Republic and the 75 million exported by Honduras. However, the goal of the Nicaraguan industry is to gain a greater presence in Europe, a market that until now has been dominated by products from Cuba.
In Panama, the Colon Free Zone established requirements for the issuance of special permits for the marketing of cigarettes, tobacco products and pharmaceuticals.
By means of Resolution No.008-2019, published in La Gaceta Oficial on April 25, 2019, it was informed that companies will have a maximum term of 120 calendar days to comply with the requirements of special permits for import, transfer, marketing, export and re-export of cigarettes and tobacco products.
Despite Nicaragua's political and economic crisis, tobacco exports in 2018 totaled $222 million, 10% more than in 2017.
Statistics from the Central Bank of Nicaragua (BCN) show that between 2017 and 2018 sales abroad under the free trade zone regime increased by $20 million, from $202 million to $222 million.
Changes in product labeling and greater regulation in the licensing process are some of the provisions approved by the National Assembly of Panama.
Cigarette packages marketed in the country must comply with simple packaging, brand name, health warnings and other characteristics, are some of the approved changes.
Businessmen in the sector estimate that cigar and Havana cigar consumption in the country is around 120,000 units per year, generating annual income close to $840.000.
Cigars are marketed at prices ranging, on average, between $6 and $50 per unit; however, there is a group of consumers who demand higher quality products whose prices per unit exceed $100.
A subsidiary of Philip Morris in Costa Rica has acquired 100% of Tabacalera Costarricense, which will maintain its operation, but will suspend the production of cigarettes in the country.
The company announced that the products that up till now have been manufactured in Costa Rica will be produced at Philip Morris International's global plants.
From January 22nd to 27th businessmen and investors will be visiting plantations and taking part in business meetings as part of the International Festival Puro Sabor.
The event will begin in Granada, but visits will also be made to Rancho Santa Ana in Rivas and Estelí. The Nicaraguan Chamber of Tobacco Producers (CNT), organizer of the Puro Sabor International Festival, expect the participation of 200 people from thirty countries.
Pharmaceutical products, plastic, food preparations, sugar and confectionery, and electrical cables are the main products that are sold to companies in the Dominican Republic.
Figures from the information system "Trade between Central America and the Dominican Republic", compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Clic to interact with the chart"]
In the first ten months of 2017, tobacco exports totaled $188 million, and the union of Nicaraguan producers estimates that by the end of the year they will have exceeded the annual goal of $218 million.
The $188 million generated from tobacco exports between January and October of this year represents 85% of the goal set by the tobacco industry for this year.
The aim is to promote development of new business between both countries, and increase exports from Honduras of products such as coffee, chocolate and tobacco.
The objective is to develop more commercial relations, and increase exports from Honduras of products such as coffee, chocolate and tobacco.The new business chamber starts operations with 25 affiliated companies.
British American Tobacco has announced that it will be investing $4.5 million in the construction of offices and a distribution center measuring 17 thousand square meters, which will start operating in June 2018.
The distribution center will have 17 thousand square meters of warehouse and 1,200 square meters of offices, and will be built in the upper and southern part of Managua, overlooking Lake Xolotlán.
Premium cigars led Nicaraguan tobacco sales abroad in the first half of the year, registering a 19% increase over the same period in 2016.
Due in part to the promotion of several cigar brands that entered the US market before the first half of last year, tobacco sales increased from $81.7 million in the first half of 2016 to $96.9 million in the same period this year.
In 2016 5.5 million kilos of tobacco and tobacco waste were exported, equivalent in value to $59 million, 10% more than the value of exports in 2015.
In 2016 foreign sales of tobacco and tobacco waste generated $58,695,000, 10% more than the $53,382,000 generated in 2015.The volume of exports also grew in the period in question, although not as significantly as the value. In 2016 5,5 million kilos were exported, whereas the previous year the total amount exported was 5.1 million kilos.
In 2016 foreign sales of cigars grew by 11% over 2015, reaching $178 million, of which 84% were destined for the US market.
Figures from the General Directorate of Customs indicate that Honduras and Germany rank second and third in the list of target markets for Nicaraguan cigars.Between 2014 and 2016, growth was 10%, going from $148 million to $178 million.
From January 16 to 21st, 2017 entrepreneurs and investors in the sector will be visiting plantations and taking part in business meetings as part of the International Festival Puro Sabor.
The Nicaraguan Chamber of Tobacco Growers is awaiting the arrival of investors and entrepreneurs from more than 30 countries involved in the sector.Juan Ignacio Martinez, president of the union, told Laprensa.com.ni that"...So far people from 23 countries in Latin America, Europe, Africa and Asia, Oceania have confirmed".
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