Cuban families devise ingenious solutions to endure frequent power shortages
Since December, when the government stopped supplying their cooking gas, the family had relied on an electric burner — until persistent blackouts made that solution impractical.
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Forbes
18-07-2025
- Forbes
Cuban Culture, The Enduring Spirit Of Havana, And A Tariffs Shrug-Off
The bar at the Havana Club Museum, Havana, Cuba. Havana has a colorful history; from its heyday as the playground of rich Americans and Europeans until the last mid-century, to a sanctioned state that the Trump administration considered a malicious actor—amply demonstrated by Cuba being relisted as a 'state sponsor of terror' on January 31 through an executive order. This reversed a more lenient position from the former Biden government. Yet the island state, the largest by far in the Caribbean, maintains a vibrant arts and music scene in the capital. Amid regular electricity blackouts and half-empty shelves in stores and pharmacies, Havana's residents are resilient. The glitzy glamour may have gone, but vintage style and a deep-rooted energy and vitality remain. Moreover, despite being heavily sanctioned, Cuba continues to have prominence—even preeminence—on the world stage thanks to its renowned cigars. There is rising demand in China which has led to record sales, despite huge price rises in some regions. The country's other famous export, Havana Club, is far more accessible, making its way onto retail shelves in 125 countries with one notable exception—the United States. Sanctions mean that the rum is embargoed in one of the rum industry's biggest markets, which accounts for about one-third of global rum sales. Christian Barré: 'Today's footprint is mainly Western Europe, but we are expanding in the Americas: ... More Canada, Mexico, Chile, and Argentina. Also Eastern Europe and Asia.' Yet 'el ron de Cuba' has thrived globally. While its home market had been the revenue driver for many years—and Havana Club remains Cuba's top-selling rum with a commanding 60% market share according to drinks analyst IWSR (2023 data)—today, exports are close to 80% of sales. Of 45 million bottles sold worldwide in 2024, 61% made their way into Europe, and 14% into Latin America and Canada. In the U.S.—not that it matters to Havana Club—rum has 'slipped into decline from 2022 to year-to-date,' said IWSR last November. The analyst noted: 'Rum has seen mixed, but generally underwhelming, performance over the past few years in the U.S.' January to August data in previous years showed a pandemic 'bump' of 4% from 2019-2020 and 2% from 2020-2021, well below the 5% growth in the overall spirits business for both years. Havana Club sails past tariffs In these unpredictable days of Trump's changing tariffs—which are very likely to raise prices—not having to deal with the U.S. is considered a blessing in some quarters of the drinks industry. Companies are finding ways of mitigating potential tariff effects, from halting imports to temporarily switching focus to alternative markets, which is the case for a string of drinks players including Netherlands-based Navy Island Rum, Macduff International, and Vancouver-based Mark Anthony Group. Havana Club isn't having to duck and dive. CEO, Christian Barré, can afford to take a more relaxed approach. He told me: 'There is still no clear view on the road ahead for global spirits such as Scotch, tequila, cognac, and maybe Champagne.' A raft of tariffs is scheduled to arrive on August 1, but based on previous form, that could be a movable feast. Earlier this year, Marten Lodewijks, president of IWSR US, said: 'The Trump administration's policies on tariffs will almost certainly be net negative for the U.S. alcohol market, with global implications likely to be more limited.' The analyst admitted that modeling the various potential scenarios is complicated by a number of unknowns such as the scope of tariffs, their duration, and the impact of retaliatory measures. El Floridita in Havana is known as the 'cradle of the daquiri'. Barré said: 'In this environment, the only thing you can do is make sure your product holds onto its brand values and heritage and build your brand's image on this. You have to stay true to what you believe and defend and protect it.' Cuban identity is deeply ingrained Havana Club's image is entwined with—and inseparable from—Cuba. The rum celebrates the country and its people, and it is very much reciprocated. Alongside the capital's world famous Malecón, a sweeping seafront promenade that is a UNESCO world heritage site, and neo-classical or modernist casas such as Adela, Italia, and Pamela, to the music of Compay Segundo, Buena Vista Socila Club, Beatriz Márquez, and acapella groups such as the Cuban Vocal Quartet; the island's favorite rum has its pioneering place among them. In modern Havana, amid artists' studios like that of Vicente Hernandéz, or the sculpture workshop of José Villa Soberón, 'Havana Club is everywhere, like a national symbol,' said Barré proudly. The downtown Havana Club Museum is an indicator of the rum's influence. It is ranked among the top places to visit in the city according to Tripadvisor, and seeing visitors and locals break out into spontaneous salsa or Danzón is not unusual. A rare gathering of all five of Havana Club's esteemed maestros de ron at Casa Pamela in Vedado, ... More Havana. But Havana Club hasn't become an institution on its own. The state-owned brand formed a joint venture with what is now the drinks giant Pernod Ricard in 1993, setting the stage for international stardom. 'The brand has always resonated, but the JV really gave it a push. In the export market, just before the deal it was selling 200,000 cases and now it's four million,' said the CEO. The business is quite big for a Cuba JV at 550 people, and another 50 internationally, mainly in Paris. In 1993, there were just six, indicating the scale of international development in three decades—from exports to 'friendly nations' like the former Soviet bloc to 125 countries today. Cuba still commands a hefty 22% of 45 million bottles sold in 2024 and remains the biggest country market, followed by France, the U.K., Germany, and China. Keeping the Cuban spirit alive Havana Club is a very much a powerhouse in Europe and Latin America. The upgraded positioning of expressions like Selección de Maestros and Tributo through the new Icónica branding revealed last year is expected to bring more consumers knocking at the door. The five lines in the range are limited on production volumes except for Selección, and the crowning glory is Máximo Extra Añejo (with just 1,000 bottles produced annually). The smart move to split the range means that the core, everyday collection retains its Havana Club badge, while the higher end becomes Icónica by Havana Club. 'It is a quality assurance, designed for aficionados looking to buy something different, unique, specific—and top quality,' Barré told me. To get that message across, Icónica concentrates on heritage and storytelling, with a focus on European markets to start with. The Icónica rebrand has premium written all over it. Premiumization is the strongest growth lever for rum globally, with dark rum leading the premium segment. The share of premium-and-above dark rum rose from 11% in 2019 to 17% in 2024, while super-premium rums (aged 8+ years) are forecast to grow at 6% CAGR through 2028. Craft and aged rums are gaining traction among Millennials and Gen Z, who seek authenticity and complexity. Back in Havana, whether it is a historic restaurant or bar like La Guarida and Floridita, or modern rooftop and arts/dance spaces like Sibarita and Fabrica de Arte Cubano, Havana Club is always prominently displayed, and frequently poured. New rum markets and China's potential Naturally, Barré would love this scenario to play out across the globe. That takes time, so the rum continues its brand-building in earnest. 'Today's footprint is mainly Western Europe, but we are expanding in the Americas: Canada, Mexico, Chile, and Argentina. Also Eastern Europe and Asia.' He noted some retail markets like Switzerland have become significant for the Icónica range. 'In specialty stores, consumers are looking for really great products. Switzerland is big for Máximo, for example, and therefore gets a very good allocation.' Barré is also bullish on China. While not a big rum market to date, it is growing for Havana Club. 'Despite everything we hear about the difficulties in China around cognac and whisky, the Chinese remain focused on premium international brands like Havana Club, so things are going pretty well there; rum is a new option for consumers. It is still small, but growing very nicely,' he commented. In China, people forget that many brands are still selling mainly into Tier 1 cities, but Tiers 2 and 3 remain largely untapped, and most have far bigger populations than New York or Los Angeles.' Five have populations above 10 million and 13, including Wuhan, have populations between 5-10 million. Across China, there are 65 cities with more than a million people compared to 14 in the United States (source: World Population Review). Barré added: 'Many consumers defend nationalism and drink local products like baijiu (白酒), but they are also very interested in new categories and new tastes and this is where rum is interesting because it has a sweeter taste and is easy to mix, making it more accessible. For us, China is a great mid-to-long-term opportunity along with other Asian countries.' In the first half of Pernod Ricard's 2025 financial year, Havana Club was one of just three among 13 'strategic international brands' to see any growth, even though it was only 1%. The other two were much bigger whisky houses: Ballantine's and Chivas Regal. It seems that Barré's split-range strategy to premiumize is working, and that the spirit of Cuba will continue to make waves globally.
Yahoo
16-07-2025
- Yahoo
Cuban president addresses anger over 'there are no beggars' claim
Cuba's president was forced to step in Tuesday after a minister's assertion that "there are no beggars" caused an uproar on the economic crisis-stricken island. Labor Minister Marta Elena Feito on Monday told a parliamentary committee meeting about measures to address poverty that people rummaging for food in garbage bins are in fact "disguised as beggars." "When you look at their hands, when you look at the clothes those people are wearing, they are disguised as beggars, they are not beggars. In Cuba, there are no beggars," she said in statements broadcast live on state television. Social media users in the communist nation reacted with outrage, posting photos of people eating out of trash cans, while economist Pedro Monreal commented on X that there are "people disguised as 'ministers'" in Cuba. President Miguel Diaz-Canel entered the fray on X Tuesday to lambast Feito's "lack of sensitivity." He later told a parliamentary session that "none of us can act with arrogance, act with pretense, disconnected from the realities we live in." Beggars, added Diaz-Canel, are "concrete expressions of social inequalities and the problems" Cuba faces. Poverty levels have increased sharply as the Caribbean country reckons with its worst economic crisis in three decades, marked by shortages of food, medicine and fuel and daily power blackouts. Observers blame a combination of US sanctions, domestic mismanagement of the economy, and the Covid-19 pandemic tanking the nation's vital tourist industry. Last year, the government said there were 189,000 families and 350,000 individuals out of a population of 9.7 million living in "vulnerable" conditions and benefiting from social assistance programs. AFP has observed a marked increase in the last two years of homeless people and beggars on the streets of a country where the average monthly salary is less than $20 at the unofficial exchange rate. Cuba's economy shrunk for the second consecutive year in 2024, contracting 1.1 percent compared to 1.9 percent in 2023. lp/val/mlr/jgc
Associated Press
15-07-2025
- Associated Press
Cuban minister faces backlash for saying there are no beggars in Cuba
HAVANA (AP) — A Cuban minister sparked criticism Tuesday, including from the president, after saying that there are no beggars in Cuba, only people disguised as such, and suggesting that those who clean windshields at crossroads have an 'easy' life. Cuba's Minister of Labor and Social Security, Marta Elena Feitó Cabrera, made the comments on Monday before deputies in a National Assembly committee. They went viral, prompting calls for Feitós' impeachment and a wave of criticism in a country experiencing a tough economic situation in recent years. The economic crisis in Cuba has increased social vulnerability and led to unusual scenes for the island, such as people — especially the elderly — begging or scavenging through garbage, or some cleaning windshields at corners. 'We have seen people, apparently beggars, (but) when you look at their hands, look at the clothes these people are wearing, they are disguised as beggars, they are not beggars,' Feitó said before the National Assembly committee. 'In Cuba there are no beggars.' She added that people cleaning windshields use the money to 'drink alcohol.' Feitó also lashed out against those who search through the garbage dumps. She said they are recovering materials 'to resell and not pay tax.' Without mentioning her name, but referring to the meeting at the National Assembly committee where Feitó participated, President Miguel Díaz-Canel said on his X account: 'the lack of sensitivity in addressing vulnerability is highly questionable. The revolution cannot leave anyone behind; that is our motto, our militant responsibility.' Until a few years ago, despite the poverty, there were no signs of begging or homelessness on the island thanks to benefits that have now been greatly reduced. The pension of a retiree is about 2,000 Cuban pesos per month, roughly $5 on the informal market, and just under the cost of a carton of eggs. For those who don't receive remittances from family abroad, it means going hungry. Self-employed Enrique Guillén believes the minister is wrong and that some people do not see the situation clearly, and hopes the government will take action. 'They are elderly people who count on a pension that does not exist. They cannot even buy a carton of eggs. It is the reality we are living in Cuba,' Guillén said. On Monday, island authorities reported that Cuba's gross domestic product fell by 1.1% in 2024, accumulating a decline of 11% over the past five years.
