Habanos S.A. increases prices up to 150%?
Habanos S.A. is increasing prices by up to 150%, according to a report in Cigarjournal. The publisher cites reliable sources. The prices are to be adjusted to those from Hong Kong. This affects Cohiba, Trinidad and the Linea De Oro from Romeo y Julieta as well as the 1935 line from Montecristo. According to Cigarjournal, which spoke to experts in the industry, it is feared that some Casa del Habanos will have to close (depending on the country). The other brands will probably also see a price increase, but not to the same extent.
Statement by Intertabak AG, Switzerland
Zigarren.Zone contacted the two official importers, Intertabak AG (Switzerland) and 5TH Avenue Products GmbH (Germany, Poland, Austria). The 5TH Avenue Products GmbH confirmed the announcement to the extent that the definitive prices are still unknown. Here is the press release from Intertabak AG:
After many rumors about upcoming price increases, we have now been officially informed by our supplier and shareholder Habanos SA that this will indeed take place in 2022.
The price increases are related on the one hand to a sharp rise in global demand for Cuban cigars, particularly for the premium brands and lines, and on the other hand to a significant increase in various cost factors. The calculation of this price increase has not yet been established for Switzerland and Liechtenstein. We will keep you informed as soon as these prices are fixed, or before the end of May.
The price increase will vary by brand and premium line. For our most premium brands and some premium lines of our global brands, Habanos S.A. will introduce a global pricing policy and the increases will be very significant. The prices of our other Global Brands will also increase significantly. For the rest of the brand range, the increase will be relatively moderate.
One of the consequences of the new pricing strategy is that Intertabak AG cannot refrain from price increases this year (as we had planned and as we have done since April 2020), but it remains part of our strategy to reduce the price differences to the surrounding markets!
We expect to be able to inform you about the new prices in Switzerland and Liechtenstein later this month when more details are available.
On behalf of the entire Intertabak management team.
In another article from 03.05.2022 Cigarjournal, there are reports of up to a quadrupling of prices, e.g. for the Trinidad brand. Will this happen in this form, or did the author convert incorrectly 150% = quadrupling? I am attaching the link to the article and hope that this link is permitted here, otherwise please delete it.
https://www.cigarjournal.com/de/prices-for-cohiba-will-triple/
The Cigarjournal article is speculative. It does not include the country-specific circumstances or the legal requirements for price increases. All in all, this article has stirred up far more rumors than was even necessary. I am in contact with both importers and they currently have no information regarding the price. So let's wait and see.
Hi Vasilij, thanks for asking. That was to be expected, although 150% is quite hefty. But for me the price increase doesn't matter anyway, as the larger format cigars are not available to me. When will the millions of ready-rolled cigars finally cross the pond?
Hi Franco, at the moment nothing has actually been confirmed as to what the prices will be. When will the millions of cigars be exported? The Cubans are asking themselves the same question. They have no wood for the boxes, no paper for the decorations - there is a lack of everything and the economy is in a desolate state.