The multi-million dollar business of Habanos SA and the exploitation of Cuban cigar rollers
The world of premium tobacco has a name that resonates with prestige: Habanos S.A. The Cuban state-owned company that monopolizes the production and export of the famous Cuban cigars reported record revenues of $827 million in 2024 , an increase of 16% compared to the previous year. However, behind this lucrative business lies an alarming reality: Cuban cigar rollers, true artisans of this luxury product, barely earn enough to survive .
The numbers of a multi-billion dollar industry
The Cuban cigar market continues to boom, with prices reaching astronomical levels in recent years. A single cigar can cost between $50 and $100 or more in international markets , with limited editions and premium brands such as Cohiba, Trinidad and Montecristo leading the demand.
Countries such as China, Spain, the United Kingdom, Germany and Switzerland are among the main buyers of cigars, and the trend indicates that demand continues to grow. However, while the luxury consumer pays a high price for each cigar, the workers who make them continue to live in precarious conditions.
The salary of a Cuban cigar roller: a global disgrace
Despite the glamorous image surrounding cigars, Cuban cigar rollers receive a monthly salary ranging from $57 to $77 USD . According to a report by Distintas Latitudes , published in August 2020, a cigar roller in Cuba receives a base salary of 215 Cuban pesos (approximately 8.60 USD) and an additional payment for results that varies between 500 and 750 Cuban pesos (20 to 30 USD) every fifteen days . This translates into a total monthly income of 1,430 to 1,930 Cuban pesos (57.20 to 77.20 USD) .
While this figure is higher than the $20–25 per month reported in previous years, it is still far below the real value of the cigar rollers' work .
An experienced cigar roller can produce around 100 cigars a day , which is equivalent to 2,500 cigars a month . If each of these cigars is sold at an average price of $50 , the total value of the tobacco produced by a single roller per month amounts to:
- $125,000 dollars a month
- $1.5 million a year
Meanwhile, the worker who made them earns just between $57 and $77 dollars a month , which means that his annual salary is equivalent to selling just one or two cigars abroad .
Salary comparison: Cuba, Nicaragua and the Dominican Republic
The tobacco industry is not limited to Cuba; countries such as Nicaragua and the Dominican Republic are also renowned for their production of high-quality cigars. However, the wage conditions of cigar rollers vary significantly between these countries.
Nicaragua : According to 2025 data, tobacco preparers and processors in Nicaragua have a salary ranging from C$4,832 to C$11,467 córdobas per month . At the current exchange rate, this is equivalent to approximately $132 to $313 dollars per month . This indicates that, on average, a Nicaraguan cigar roller earns between two and five times more than his Cuban counterpart.
Dominican Republic : Although recent wage data is not available from the sources consulted, it is known that the Dominican Republic is one of the largest exporters of cigars worldwide, and the demand for experienced cigar rollers has influenced wages. Historically, wages in this country have been more competitive compared to Cuba, due to high demand and the constant growth of the Dominican tobacco industry.
Exploitation or modern slavery?
The difference between what Habanos SA generates and what it pays its cigar rollers is not only an injustice, but a form of exploitation that borders on modern slavery .
- Less than 0.05% of the value of their work goes to the worker.
- A single cigar is worth more than a cigar roller's monthly salary.
- Cigar rollers work long hours under strict rules and with few opportunities to improve their conditions.
Cuba justifies these low wages with the argument that workers receive free education and medical services, but in practice, this does not compensate for the brutal exploitation to which they are subjected. While Habanos SA and the Cuban government line their pockets with this multi-million dollar business, the real protagonists of the industry's success remain trapped in poverty.
The dark side of luxury
When someone abroad enjoys a Cuban cigar for $50 or more, they rarely think about the person who made it, earning pennies on a product that generates millions. The reality is that Habanos SA would not exist without Cuban cigar rollers, but they remain the great forgotten ones in the industry .
Next time you smoke a cigar, ask yourself: is this luxury worth it if there is exploitation behind it?
Sources:
- Reuters - Habanos SA hits record sales of $827 million in 2024
- Habanos SA - Record turnover of $827 million in 2024
- Different Latitudes - The tobacco route in Cuba (wages of cigar rollers)
- AP News - Auction at the Cigar Festival raises $19.3 million
- Reuters - Owned by Habanos SA (Cuban government and Tabacalera SLU)