Tobacco: Booming Industry in Nicaragua

Friday, June 28, 2019
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.

The product is well positioned in the U.S. market, because according to the 2018 ranking of the magazine “Cigar Aficionado” in the U.S., of the ten best brands of cigars, six were Nicaraguan.

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Regarding the competitive advantages of the local industry, Néstor Plasencia, vice president of Plasencia Cigar, one of the top exporters, explained to that “… No one has the soils that Nicaragua has for tobacco,’ with its volcanic lands.

Wenceslao Castillo, director of the Nicaraguan Chamber of Tobacco Growers, states that “… The strength of Nicaraguan tobacco is the consistency we have in quality,’ which has allowed ‘us to be the main exporter of premium cigars to the United States.

Given that its main market is external, the tobacco industry is one of the few that has not been affected by the political and economic crisis that the country has been going through since April last year.