Price hikes hit the cigar industry

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If your favorite cigars seem more expensive than usual, it’s not your imagination. Inflation has skyrocketed the price of everything from beef to gasoline, and premium cigars are no exception. Many companies in the cigar industry have increased their prices or are about to do so. cigar lover spoke to many top manufacturers who let us know what to expect this year and how it will affect your wallet.

On December 29, 2021, Arturo Fuente announced that the family business was reluctantly raising prices for 2022. It had refrained from raising prices last year on 99% of its portfolio in a bid to help businesses physics to remain competitive. with online retailers.

“We haven’t increased most things in years,” owner Carlos Fuente Jr. said. cigar lover. “It is sad to be forced into this, but it is absolutely necessary to take care of our staff and the rising costs of all raw materials, packaging, etc.

Fuente raised prices by four to eight percent, its first widespread increase since January 1, 2020. Hemingway, Don Carlos, still below our costs…we maintained our fastest growing line, Casa Cuba, at only 4% increase, which is less than our internal cost increase. Our rarest cigar, Fuente Fuente OpusX, we had no choice but to increase by 8% to capture the costs of farming, processing and manufacturing in the Dominican Republic, as well as the increase in other costs associated with the brand. Fuente added that the Rare Pink series increased by 6% and the Añejo by 7%.

Prices for Fuente’s Rare Pink Series cigars increased by 6%.

Fuente’s price increases began on the first of this year, and the company is far from alone. Since January 10, Scandinavian Tobacco Group, parent company of General Cigar Co., has raised prices by an average of 5% across its entire portfolio, which includes brands such as CAO and non-Cuban versions of Cohiba, Punch and Hoyo de Monterrey.

Ashton Distributors Inc., maker of brands such as Ashton, La Aroma de Cuba and San Cristobal, has seen an average increase of about 6% on its lines, which translates to about 75 to 80 cents per cigar. The only exception is the Ashton Estate Sun Grown line, which has a price increase of seven percent, or $1.50. The company said cigar lover this was in response to rising costs.

Florida-based JC Newman raised the cost of its premium lines by 3%, citing high labor and tobacco costs. This came into effect on January 12. Drew Newman, general counsel for the company, said: “Because we blend our cigars with tobaccos grown on four continents, rising transportation costs and global supply chain delays are affecting the cigar industry. top of the line. . . With inflation rising dramatically in countries where tobacco is grown and cigars are rolled, labor costs also rise, which dramatically increases the cost of production.

Fans of Oliva or Rocky Patel cigars have a bit more time to stock up before prices rise on these cigar lines. Starting February 1, Oliva Cigar Co. (makers of brands such as Oliva Serie V Melanio) and Rocky Patel Premium Cigars (the company behind Rocky Patel Grand Reserve and other cigars) will each implement price increases. 5% price reduction for their respective cigar lines. . In a Dec. 23 letter to his customers, Rocky Patel said “all back orders before Jan. 31, 2022 will be filled at the old price.”

cigar retailer

La Flor Dominicana is also giving its customers more time, as prices will not increase until February 15. with limited editions, like the Andalusian bull, up eight percent.

Alec Bradley, a company that produces cigars in Nicaragua and Honduras, implemented an average increase of 7% across its entire portfolio. Brands such as Kintsugi and Black Market will cost you a bit more, although the Gatekeeper range is unaffected. These increases took effect on January 3.

Like most in the industry, Pete Johnson, owner of Tatuaje Cigars, raises prices on many of his products, but not all. Johnson said cigar lover that most of the increases on his cigars made in Nicaragua are between four and six percent. Its Miami-made products, such as the Tatuaje Reserva K222, have gone from seven to ten percent. Lines such as Tatuaje Black Label, Tatuaje Negociant and the Tatuaje Broadleaf collection will see no increase, nor will products announced in 2021 with a release date in 2022. There are also certain sizes in certain ranges exempt from the price increase , such as the Petite Cazadores, the Petite Tatuaje and the Petite Cabaiguan, as well as the Cojonu 2012 and Cojonu 2021.

Prequel

Appointed cigar loverCigar of the Year 2020, the EPC Pledge Prequel will cost 5% more from next month (Photo/Jeff Harris).

On February 15, 2020 Cigar of the Year maker EP Carrillo will institute a 5% increase on its lines excluding New Wave Connecticut and Dusk. Pricing for recently released formats such as the Carrillo Pledge Apogee EP and the Carrillo La Historia Parientes EP will also remain unchanged. These cigars are produced in the Dominican Republic.

Despite these overall price increases, Drew Estate says cigar lover that there is currently no raise on his cigars. The company manufactures the Herrera Esteli, Undercrown and Liga Privada brands in Nicaragua. There is currently no price increase for Joya de Nicaragua cigars, which are also distributed by Drew Estate.

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