Global Cuban cigar sales up 5 pct in 2016

Cuban cigar sales worldwide reached 445 million U.S. dollars in 2016, an increase of 5 percent over the year before, the state-run Habanos corporation reported on Monday.

The increase in sales -- despite regulations that make it tough for Cuban cigars to break into certain European markets -- is a good sign for Cuban cigars, Habanos Vice President of development Javier Terres said at the opening of the 19th International Habanos Festival in the capital Havana.

Terres credited the sales uptick on steady growth in traditional markets such as Spain, France, Germany and Britain, and newfound consumers in emerging markets in Eastern Europe, the Middle East, Latin America and the Asia-Pacific region.

Thanks to increased tourism to Cuba, domestic sales of Cuban cigars also grew, placing the country in fifth place after Spain, France, China and Germany.

However, the U.S.-led trade embargo against Cuba, which bars the Caribbean country from exporting its famed cigars to the United States, the world's largest cigar market, is still a major impediment to growth, he noted.

The festival, which runs through Friday, draws cigar aficionados and buyers from 50 countries.

Founded in 1994, Habanos operates 144 retail centers, and also sells to other distributors in some 150 countries and regions. Endit