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Edgar Cullman Jr.

CEO, General Cigar Company
Marvin R. Shanken
From the Print Edition:
Demi Moore, Autumn 96

(continued from page 18)

Cullman: Rapidly. And they will continue to grow.

CA: Can you give us what Partagas No. 10 production was in 1992 versus 1995 and 1996, and what your internal projections are for three years from now?

Cullman: Again, I can't give you specific numbers. But if you take 1992 as a baseline of 100, then in 1995 we produced 2.5 times as many of the No. 10s, and in 1996, we will produce 4.5 times as many.

CA: There's been a lot written and said that the industry back-orders are exceeding 25 million or 30 million to even 50 million today. Are you able in '96 to reduce your back-order problem, or when will you be?

Cullman: We have not been able to reduce our back-order problem, which is mounting. We do not want to give specific numbers, but I can tell you this, we have increased our production 20 percent this year, and yet we still are increasing our back orders.

CA: In 1995, your sales in units were far greater than the year before as reported in your annual report.

Cullman: Right.

CA: What kind of increase in shipments will you have in '96?

Cullman: Our shipments will be up significantly in '96, but not as significantly as they were in '95 over '94. Mostly because we can't produce the cigars fast enough. The limitations are two: first, tobacco--not wrapper tobacco, we have enough wrapper tobacco--but mostly filler and binder. And we have enough filler and binder but it's not aged enough. We would be using too young tobaccos.

CA: If your production is up 20 percent this year, what kind of increase do you expect in 1997?


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