Altadis U.S.A. has informed its retailers that it will be adjusting prices on a number of its products as of Feb. 1, with a mixture of increase and decreases that retailers will see in the coming weeks.
The cause of the increases can be attributed to “the on-going rising costs of raw materials, manufacturing and logistics,” according to a letter sent to retailers on Thursday.
Over 250 SKUs are being affected, but not all are increasing. Around 190 SKUs—most of the company’s portfolio which includes brands like H. Upmann, Montecristo and Romeo y Julieta—will increase compared to the 2015 price list, with almost all increases between 1-3 percent for non-bundle premium cigars. Some of the company’s most inexpensive bundles will increase around 5 percent, as well the Seijas Signature Line.
Yet, the average change is actually a net decrease of around 1.5 percent. That’s because there are over 75 SKUs that will decrease in price with most declining over 10 percent.
Lines decreasing in price include Don Diego, H. Upmann Legacy, H. Upmann Vintage Cameroon, the regular Montecristo line, RyJ Vintage, Trinidad Paradox and VegaFina Fortaleza Dos.
A company spokesperson declined to provide further comment about the price changes.
Charlie Minato contributed to this report.