Yesterday, we reported as part of the Weekly News that CAO was set to increase prices effective July 1, 2011. The information came from an e-mail sent by retailer Cigars International this past weekend. A quick conversation with CAO clarified that CAO is not subject to a price increase, rather Cigars International will be forced to raise prices on their CAO offerings. The move is expected to help level the playing field for B&Ms, that are a lot of times unable to compete with the prices that CI has offered on CAO products. Image of e-mail after the jump.
Update: Retracting a retraction? Welcome to my wonderful day. Word from General Cigar Co. is:
The trade had a temporary price reduction on CAO. As of July 1, CAO prices are going back up to historical levels.
So? What does that mean. Well, who knows. It remains unclear if retailers (besides the catalogs) actually lowered CAO prices when the prices were lowered. Will retailers raise CAO prices? Inevitably some will, or at least that would be my guess.