Chinese liquor company signs agreement with Cuban cigar company

Photo: Wikimedia Commons.

Chinese liquor company Luzhou Laojiao and Cuban-Spanish cigar maker Habanos S.A. have signed a strategic agreement to jointly expand their markets. During the XXIV Habano Festival in Havana, Cuba, Zhang Biao, General Manager of Luzhou Laojiao, highlighted the similarities between Luzhou Laojiao’s liquor and cigars, noting that the cooperation will strengthen the commercial ties between China and Cuba.

The agreement includes a joint product through co-branding, with the Chinese company handling the marketing. José María López, vice president of development at Habanos, emphasized that this partnership is based on shared values such as craftsmanship, quality and leadership, highlighting the “perfect match” between Chinese liquors and Cuban cigars.

Habanos executives reported that China has become one of its most dynamic markets, contributing to a 31% increase in sales in 2023, reaching a total of $721 million. The signing of the Memorandum of Understanding aims to explore new avenues of cooperation for both companies.

Luzhou Laojiao, one of China’s oldest liquors, has been produced in the National Treasure Cellars since 1573, with distillation technology dating back 700 years.

The collaboration will focus specifically on Luzhou Laojiao’s “Guojiao 1573” brand and Habanos Corporation’s Cohiba Atmosphere brand.

In addition, seven Guojiao 1573 brand liqueurs will be auctioned along with the best Habanos cigars during the festival, with the funds raised going to public health initiatives in Cuba. This strategic agreement strengthens commercial ties between China and Cuba in the liquor and cigar industries.