Beginning next year, Oliva Cigar Co. will no longer be the distributor for Padilla Cigar Co.
A representative from Oliva confirmed that it will no longer be handling the distribution, sales, marketing and fulfillment of Padilla Cigars effective Jan. 15, 2015. Oliva will still be responsible for production of some Padilla brands including the Cava, Reserva, Reserva Maduro, Vintage Reserve and Connecticut.
“I go back to what I’ve done before, handle my own distribution,” said Ernesto Padilla in a phone interview with halfwheel. “Right now I will be maintaining the accounts I have with an office and a warehouse here in Miami. Oliva is still going to make the products, all that stays the same. The stuff I make at El Titan, stays the same.”
The distribution relationship between Oliva and Padilla began in September 2012. Neither side would confirm whether that agreement was set to expire or offer an explanation for the termination.
News of the change was first reported by The Cigar Authority/Two Guys Smoke Shop.
Padilla told halfwheel that he has no plans to hire sales representatives or brokers at this moment, but that could change as he analyzes his options going forward. As far as the Padilla portfolio, he made it clear that he has interest in creating small-batch cigars priced around $7, something that he said he found challenging to do with Oliva because of the size of the factory and its sales operation in the U.S.
“We are not ending the relationship. For me ending a relationship is not doing anything, I very much have a relationship with them.”
Rumors have once again surfaced regarding Oliva and a potential sale of the company, something a company official described as false.