Date: October 2020
Author: Inspector Z

Oscar Valladares loses German distribution. In an e-mail to German retailers, distributor Paul Bugge GmbH explained the reason to terminate the business relationship with the Honduran cigar manufacturer. The reason is a breach of trust.

unreliable information

In the e-mail to German retailers, Paul Bugge GmbH apologized for canceling all the backorders. And thanked the retailers for their patience. The distributor then explains that about 9 months ago, an order was placed at Oscar Valladares Tobacco & Co. That was before the covid-19 pandemic disrupted the world. According to Paul Bugge, the problem isn’t the delayed delivery as they understand the struggle that cigar manufacturers have with this pandemic. Honduran factories were closed down on government orders. Plus shipping is an issue at the moment, as explained in the article we published last Sunday.

The problem which ultimately led to the termination of the business relationship is reliable information. For months, Oscar Valladares Tobacco & Co gave the wrong delivery information to Paul Bugge GmbH. And updated that false information with more false information. The distributor passed on that information to retailers in good faith. Then retailers pass that information on the consumers. As Bugge said in the e-mail “A reliable supply chain and serious cooperation is not possible for us under these circumstances. We want to guarantee you a continuous supply and reliable service with our products. Therefore the business relationship with Oscar Valladares is terminated on both sides.”

Oscar Valladares response

We reached out to Oscar Valladares Tobacco & Co for their side of the story. We have not had a response yet. We will update the article when they do.

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