First came Gustav, then just eight days later it was Ike's turn. Two powerful hurricanes slammed Cuba and left the cigar industry reeling from massive damage. The government has estimated the losses at approximately $5 billion. Thousands of drying barns loaded with tobacco leaves were destroyed, and thousands of homes belonging to the cigar industry workers are also wiped out. Hundreds of tons of tobacco were destroyed.

While forbidden in the US, Cuba dominates the rest of the world's market for cigars with an approximately eighty percent share. Experts expect prices for Cuban cigars to rise in the wake of the shortages resulting from the damage. Additionally, prices for cigars from competing countries like the Dominican Republic, Honduras, and Nicaragua are also likely to rise as some of the world's demand switches away from the even more expensive Cubans.